Deciding between buying a brand-new or a second-hand home is sometimes complicated. Making the right choice depends on preferences, needs and budget. New homes are purchased from developers, while second-hand homes have had one or more owners and are old. That is the starting point, but let's see some other factors we should consider.
Buying a new or used home: advantages of each option
Although the offer is lower than second-hand properties, new developments have interesting advantages:
• Modern designs, higher quality materials and careful finishes.
• Fixed price. We don't need to add the cost of renovations. Maintenance costs are also lower.
• Builder's guarantees and insurance that covers possible hidden damage or defects in finishes.
• Greater energy efficiency and, therefore, lower expenses.
• Possibility of personalizing the home.
In the case of second-hand properties, we must consider the following aspects:
• More affordable prices, allowing you to buy a larger home at the same price.
• Greater supply available and more possibilities for a home that adapts to your preferences and budget.
• Better location, in the centre of cities or in established areas where new housing is scarce.
• They can be occupied immediately or in a short period.
• There is a margin for negotiation with the owner that does not exist in new housing.
Taxes associated with the purchase
This topic deserves special attention because we will not pay the same taxes for a brand-new home as a second-hand one.
• When purchasing a new home, you must pay Value Added Tax (VAT), 10% in general and 4% in the case of VPO housing (social housing).
• In the case of second-hand housing, you must pay the Property Transfer Tax (ITP). It varies according to the autonomous community and ranges between 6% and 11%. Some communities offer reduced ITP to people with difficulties accessing housing.
Tips to help you choose
In addition to these elements, when deciding between buying a new or a second-hand home, it is worth taking into account some recommendations:
• Do not forget that the cost of the renovations, if any, must be added to the property price of the second-hand home.
• In new homes, it is common to contribute money to the developer while they build, which means the mortgage will be lower.
• It'll be different if it's to be your habitual residence or your holiday home. In the first case, it is worth looking at the services in the area, which are usually higher where there is more used housing.
• Analyze expenses such as community fees. In new developments, they can be higher because they have more facilities. However, sometimes the maintenance needs of the buildings are higher in an old property.
• Study the possibility of revaluation. Buying in developing areas is cheaper. Besides, it may increase the value in the long term.
• Evaluate several options in new and second-hand housing and compare before choosing.
If you are considering buying a brand-new or second-hand property, Spainhouses.net will help you find it. Choose a location and the main features of your dream home and start your search.