When considering purchasing property overseas, one of the most common dilemmas is whether to invest in a new build or an existing property. Both options offer a range of advantages and disadvantages, which should be weighed up carefully before deciding.
New build properties have several benefits. Firstly, they offer the opportunity to customize the property to meet your individual needs and preferences. With a wide range of styles and designs available, you may be able to choose the plot, property design, and location that best suits your requirements. In addition, new builds are constructed according to the latest building regulations, ensuring that they are energy-efficient, environmentally friendly, and incorporate the most advanced technology.
Another advantage of new build properties is that they often come with a warranty, which ensures that any faults discovered after purchase are fixed promptly by the builder. Furthermore, developers frequently offer attractive finance options or payment schemes that are not available for resale properties, enabling buyers to pay for their investment in staged payments as the property is being built.
New build properties also offer the potential for capital appreciation, as developers often provide discounts to buyers who invest in a project at an early stage. Moreover, new builds typically have lower repair and maintenance costs, as modern buildings are constructed to a high standard and require less maintenance than older properties.
However, there are also some drawbacks to investing in new builds. Firstly, the process of constructing a new property can take up to 12 months, and there may be additional paperwork required to ensure that the property complies with relevant regulations. In addition, new builds are often located further from the resort centers than existing properties.
Furthermore, the price of new build properties can sometimes be higher than that of existing properties, depending on the location and age of the property. There is also a greater risk associated with investing in new builds, as there is a risk of late delivery, incompletion, or defects. Legal costs can also be higher due to the additional complexity and protection required during and after the completion of the property.
On the other hand, existing properties have their own set of advantages and disadvantages. They are often less expensive than new builds, particularly in high-demand areas, city centers, or historical villages. If the property is ready for occupation, buyers can take possession once the paperwork is completed, allowing them to start using or renting out the property immediately.
However, existing properties do not come with any warranties, and there may be a higher requirement for repairs and maintenance. Buyers may also find that the property does not meet all of their requirements and will need to make changes to the property to bring it up to their standards, incurring additional costs.
Whether you choose to invest in a new build or an existing property, it is important to seek expert advice to navigate the potential pitfalls of the buying process. We are here to provide support and guidance at every stage of your investment journey. If you would like to discuss this further, contact us today.
