March 23, 2021 Eview Group

The pros and cons of purchasing an existing property

Whether it’s a character home, a renovator, or a dream pad you simply fall in love with there are both pros and cons to purchasing an existing property.

So, let’s explore just a couple of the benefits and drawbacks of buying an established home.

Benefits of buying an existing property

Deciding whether to purchase an existing property or build a new one is one of the first decisions home buyers will want to consider as they map out their property journey. And each has its pros and cons.

In the case of existing properties, benefits include a property that’s ready to move into in an established location, which might just offer some character features or closer proximity to the CBD.

Let’s dive a little deeper…

Character

If you’re looking for character it’s hard to go past a home with a little history, particularly around older city suburbs where each state has its own ingrained architecture.

The reality is, no matter whether they were built five or 50 years ago, established homes come with history, and some of them have a character and history that’s longer than others.

Location

Due to the shortage of available land in proximity to the cities, established properties may just offer you a more favourable location than a new build.

That location may come with a higher price tag, meaning you may get a little less bang for your buck in terms of property size, features, and fittings.

Potential improvements

While you might find the existing home of your absolute dreams, there’s also the opportunity to make improvements to an established property.

If that’s your intention, be sure to get some good advice in advance of purchasing, including maybe calling in a builder or architect to work out exactly what you will be able to do.

Wait time

Ideally, an established home will be move-in ready, meaning there’s minimal wait time before you receive the keys and start making this home your own.

New builds, on the other hand take time to construct.

Established gardens and amenities

Likelihood is it’s not just the property that’s established, there will also be gardens, infrastructure and nearby amenities as well.

And while some people may be prepared to wait for a suburb to ‘grow up around them’ others will be keen to enjoy existing facilities and conveniences already on offer.

Drawbacks of purchasing an existing property

There are two sides to every coin and while there may be benefits to buying an established home, there could be drawbacks as well.

Fewer incentives

At present there are quite a few incentives floating around for home buyers looking to embark on a new build. Many of these aren’t available when it comes to purchasing an established property.

Inherited issues

Regardless of the age of your established property, there could be inherited issues. Whether it’s the living spaces you can’t re-configure due to a load bearing beam, the aging wiring or that deck that needs replacing, older homes in particular can be prone to existing issues.

That’s why it’s critical to conduct a pest and building inspection in advance of any purchase.

Meanwhile, heritage homes potentially come with strict rules on what you can and cannot do.

Affordability

Finally, affordability might be a deciding factor. Often new builds allow you to enjoy modern conveniences like air conditioning, new finishes and modern features. Some of these could even save you money down the track, with new builds often incorporating energy efficiency into their design.

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