Old or new construction, how to choose ?

More and more buyers face the dilemma of what kind of property to choose. With prices rising and in new construction, all is not as clear as when attractive prices of new buildings were the main argument to make a quick choice. At the Dealehome team, we have different preferences and opinions, but we are united in the idea that we need to bring clarity to this important issue for every prospective homeowner.

There are a number of parameters to consider to find the product that is best suited to your personal situation. It would be a mistake to focus only on one direction of search.

One of the most important selection criteria is to be clear about the purpose of the property you are looking for. Of course there are nuances here too, but in general if we are looking to invest in a property that we will rent out or resell, the main choice is new build. 

Why?
Usually the investment is smaller and we have more time available to finance the purchase. Here we put an amazing ! Be careful with deferred payments when selling in a future state of completion. It is important to keep things realistic and in perspective when making such a choice. In some situations brand new neighborhoods are being built where sewer is not yet in place or is in the process of being installed, as well as future infrastructure. This is normal. We need to be clear that these processes take time, and we need to be able to foresee future environmental development near the property we are purchasing, such as transportation, schools, retail, and other amenities.

Location is another key criterion !
Like any real estate project, the location of the property is one of the most important parameters. An overly isolated location can hinder tenant demand and resale. In large cities, the best locations are usually in older properties (in established neighborhoods with already established infrastructure and amenities), while new properties may be located in yet-to-be-built areas offering long-term growth potential, and again, more patience and realistic judgment are required.

Investing in new properties has the advantages of building to the latest standards, more energy efficient and safer. This can lead to savings on energy bills as the home will not require energy efficiency upgrades. Optimised electricity bills are an argument for your prospective tenants as electricity prices have been very problematic in recent years. Another advantage of new construction is the ability to arrange the layout of the home as you wish from the builder's first plans, if they are willing to reflect your changes during construction. Furthermore, when you invest in new, the property is ready to be occupied immediately after purchase, which saves a lot of time searching for handymen, ideas and money for renovations.

Saying all this doesn't exclude people who are looking to own their own home in a new build, and they are not few at all.

As mentioned the prices of new construction have risen appreciably and the attractiveness of the project has to be realistically considered, all the parameters listed remain affected and patience and understanding is mainly needed. In any case, if you have decided to invest in new construction it is certainly more profitable to buy it directly from the developer at an early stage, knowing that reselling almost finished homes at much higher prices is a whole business.

Every property purchase must be considered holistically and the generally accepted rules must be overcome. Especially in Bulgaria, the market and opportunities as well as prices are still very extravagant and unpredictable in many ways. For example, you can find a property in the very centre of a big city or in the capital that can be sold for the price of a more luxurious new-build property. In such transactions the human factor usually weighs in, namely whether the seller is short of funds, how long he is prepared to wait and whether he has an urgent need to sell his property, especially if he is in a sub-division situation. In these circumstances, the advances to buy a property in a top location are clear. However, it is important to note that apart from the already developed infrastructure, neighborhood and perfect location, many of the buildings in central areas are also in poor condition. It is possible that to an unusually bargain property you will need to provide for renovation of common areas, replacement of windows and perhaps a major overhaul of the home itself. Bear in mind that very often old buildings in town centres are subject to renovation projects as part of a heritage scheme. It is a question of organisation and approval by all owners to submit a project and renovate the building with municipal or state funds. If you are enterprising and organized, and take the necessary steps, this move can save you money on exterior insulation or renovations to the building. Many of the older co-ops have patios or outdoor parking, which is an added draw for some buyers and renters who appreciate the authenticity and aesthetics of the old amenity to the property, as opposed to new construction where parking spaces are often limited and sold extra at unfavorable prices.

Older construction often has a unique charm and character that can set them apart from more standardized new construction. Architectural features, historic details and traditional style can view. A bargain home purchased in an upscale area, after a well thought out renovation and furnishing, can be rented for triple the price, and sold for almost twice as much, as listings in such areas are few and far between.

We advise you to look both ways without having vain expectations about the conditions of the properties. Take into account the potential, price, amenities, location and costs of the deal itself, as well as the profile of the people you are dealing with. Don't be resigned to the fact that everyone around you is telling you that "these are the prices" or "you won't find better", as the best deals are those that are not done by a mass of people. Be proactive and look for opportunities intensively until you are fully aware of everything that can be offered according to your criteria.

On our Dealehome platform, we provide the opportunity to find exactly these types of deals, which include spontaneous and direct listings beyond the reach of standard ones. Enjoy your search !