New vs Old

Moneygrabber89

Hi,

In people’s opinions if I want to buy house which would we could make money on would choose an older house over a new build? I went to view a new build over the weekend and it was very nice but very small. A old build one in similar area is cheaper and a lot bigger.

I’m just worried that times are changing and a lot of people seem to want new builds.

Also if I decide to go for an old build would you advise against a house which has been recently refurbished as you will probably be paying for the work they got done and more whereas if you buy old but in need off refurbishment you can get workers in yourself for cheaper?

TamsinC

I recently read an article (which unfortunately I can't refind) that said the average life of a new build before needing MAJOR works was 40 years maximum. I wouldn't personally touch a new build with a barge pole. A bit like new cars they seem to lose value as soon as they are moved into too. Small rooms. postage stamp gardens, neighbours very close often over looking. Not my cup of tea at all - AND (certainly in my area) they are priced above older houses.

Old houses for me, are my favourite, they have stood the test of time. Often built with good old fashioned techniques that last. A lot of houses that have been refurbished are done by people that either do the work themselves or its their business - it isn't a given that you would be able to do the work hiring in outside workers for cheaper. Gone are the days you could buy a very cheap wreck, do it up and sell it on for a vast fortune. Of course it depends how old you are talking. We are buying a 300+ year old house, it has been refurbished but some of it has been done wrong (modern paint and render on the walls which will eventually cause damp) and so we shall still need to do some work rectifying this. We don't want the hassle and living in mess for months, if not years, doing up a wreck so for us having most of it already done is perfect. But thats your choice.

Always remember house prices can down as well as up.

mije1983

Moneygrabber89 wrote: »

I!!!8217;m just worried that times are changing and a lot of people seem to want new builds.

They may like new builds, but once you come to sell it then it will no longer be a new build. So if people do like new builds more, then they won't be interested in your property anyway.

Personally I wouldn't buy a new build as an investment for the above reason and short term they don't seem to appreciate as much. Like new cars, they drop in value as soon as they are no longer new.

Also, you are buying for an investment then you will probably have a different set of criteria than if you were buying as somewhere to make a home. For example, you may not have children so a good school catchment area is not important to you. However, if you purchase a family sized home than that may well be important when you come to sell. So you will need to take your personal preferences out of the equation.

davidmcn

Moneygrabber89 wrote: »

I’m just worried that times are changing and a lot of people seem to want new builds.

There have (obviously) always been people who want new builds. Not sure why you think that proportion is increasing?

Larac

Attraction to new builds seems to be that you can HTB on them. We have two developments on the village in the last couple of years and they seem difficult to shift after the first set of owners decide they want to move on and try to sell at the same or higher than they brought them. Older properties in the village, more room, bigger gardens, not on top the neighbours are shifting quite quickly now all the 'new builds' have been built. I think if you are looking at 'new build' then you would need to accept that you may well need to stay there for a few years.

Lauralou79

I bought a 1930s house last year it's solid and I love it. I've never really entertained new builds they look nice new but hmmm. Each to their own though

In my area ( north west) 'old' houses are still becoming sstc very quickly (within days) I'm
Unsure how new build sales are doing . But looking at prices in our estate we think our house has increased in value already. I'm not moving anytime soon!!

I think both have their appeals to different people but it's hard to predict if you can 'make money' it often depends on your area and the market at that time.

AlexMac

Too many variables (budget for purchase /renovation, geography/location, personality, taste, experience in business, whether you have tame builders or DIY skills, wheter you can stand living in a building site...) for anyone to give you a definitive reply; which of course won't stop any of us on this forum! So here goes

Moneygrabber89 wrote: »

I want to buy house which would we could make money on

Most people buy houses to live in, not as projects or profit-generators, because capital appreciation depends so much on area, timing & the local market. In over 40 years of owner occupation; half a dozen homes plus three Buy-to-lets, I have been mostly lucky enough to enjoy great capital growth whether or not we spent a lot on improvements (we mostly did).

But that was down to silly house price inflation in London, especially in the late 20th Century. The dump I bought for £10k in 1975 in pre-trendy Brixton is probably worth a million quid now, albeit blinged up beyond recognition and we doubled our money on one place from 1997-2000; buying a wreck at £67k, spending £25k on a total refurb/new roof then selling at £180k (as well as living in it, so no tax). But I nearly got burned by the project I bought in 2007 at the height of the boom, in coastal Kent; prices dropped 25% in 2008 and we were lucky to get out even in 2011, and that only because we kept renovation costs down, Ironic really, because that was the only place we ever bought with the intention of improving it and selling!

And round here, house prices dropped again last year for the first time since 1987 and 2007

So buy a place you like and want to live in.

Moneygrabber89 wrote: »

choose an older house over a new build? I went to view a new build over the weekend and it was very nice but very small. A old build one in similar area is cheaper and a lot bigger.?

My gut says old & bigger. Especially if there is potential to extend; at the rear, sideways or upwards (look at "permitted development" on the planning portal to avoid the hassle of a 6-week to 6-month planning application.

And search new build on this forum to see some tales of woe.

All my homes have been late Victorian... bar one, so that's a taste issue. But I must admit, I like my current 1986 gaff for its flat walls (rather than lumpy out of true 19th Century ones) insulation and lack of draghts; I couldn't stand a new-build rabbit hutch!)

Moneygrabber89 wrote: »

...that times are changing and a lot of people seem to want new builds...

Really; I don't know anyone who does?

Moneygrabber89 wrote: »

...If I go for an old build would you advise against a house which has been recently refurbished as you will probably be paying for the work they got done and more ?

You seem to have answered your own question here, and I always go for the worst/cheapest house in the best/dearest stree. But again, most people improve houses to enjoy living in them, not as a resale project, unless you are buying from a developer. In which case, yes; as with new builds, the developer will have cut corners and spent the minimum outlay and will want the maximum return ...so

Moneygrabber89 wrote: »

...whereas if you buy old but in need off refurbishment you can get workers in yourself for cheaper?

That's my tactic... but can you really get work done cheap and well, and how experienced a project manager are you? I've done half a dozen refurbs and I'm still useless at it!

And as I said to begin, it depends on area and market; you could spend £20-£50k on improvements (bathroom, kitchen, extension, etc...) and turn a £500k house in a good area into one worth £600k+, or a £800k house int something worth a million. But do that in a street where the ceiling price is £90k and you'll lose money.

Any more views?

FreeBear

AlexMac wrote: »

The dump I bought for £10k in 1975 in pre-trendy Brixton is probably worth a million quid now

Late 1920s semi here bought for the grand sum of £4,000 - Last time an estate agent came over to value it, he said £250,000 (that was last year). A quiet neighbourhood, in the catchment area of several good schools from primary through to grammar. Oh, and a large secluded garden to boot.

Buy a house as a home, and pick one in an area that you want to live. Buying as a speculative investment leaves one open to being seriously burnt.

Marvel1

If I wanted a new build, I would have to be first owner, as it's not new build if you/someone else lived there.

Waterlily24

We've had 6 houses only one was new (because I wanted an ensuite lol), never again unless we had it built for oursleves!!! 2 were 1930s, two were 1920s and one was 1960s. The 1960s one was one that a farmers son had built for him in a rural area.

sleepymans

"I wanna make money from property but know "fook all"

Just be thankful if you can buy a home at all, or learn from experience