Many people tend to imagine buying a new home, but recently more and more people are choosing used homes, and the difference between the two is shrinking.
So this time, we will explain the important points and the pros and cons to consider when you’re unsure whether to buy a new or used property.
■ Advantages of New Homes ■
① Easier to benefit from housing loan tax deductions
② Everything is brand new, with warranties and after-sales service included
③ Reliable housing performance such as earthquake resistance, insulation, and airtightness
①Easier to benefit from housing loan tax deductions
New homes tend to be more expensive than used homes, but one advantage is that you can more easily receive housing loan tax deductions.
② Everything is brand new, with warranties and after-sales service included
Many people prioritize the cleanliness of the house when choosing a home.New homes have brand new wallpaper, flooring, and equipment, so they are very clean.
Also, there is less worry about defects or equipment failure, and warranties and after-sales services are substantial.
This means there is a lower risk of unexpected repair costs after moving in, which is a big advantage of new homes.
③ Reliable housing performance such as earthquake resistance, insulation, and airtightness
Housing performance improves year by year.
A house built recently usually has better performance than one built 10 years ago, even if from the same builder.
Good insulation and airtightness help maintain a comfortable temperature by reducing the effect of outside air.
■Disadvantages of New Homes■
① Higher price compared to used homes
② Hard to imagine living there when buying before completion
① Higher price compared to used homes
The biggest point when deciding between new and used is the price.
With the same budget, a used home usually offers better location or larger size than a new one.
② Hard to imagine living there when buying before completion
New homes often go on sale before they are completed.For popular properties, contracts are often signed before the building is finished.
Because you can’t check the inside or outside, it can be hard to picture your life there.
■Advantages of Used Homes■
① Affordable property price for manageable repayments
② Easier to check neighbors and living environment
③ Can renovate to create a customized home
① Affordable property price for manageable repayments
Choosing a used home at a lower price reduces the housing cost burden and makes repayment plans easier.
You can allocate more money for your children’s education, your retirement fund, or lifestyle enjoyment.
Even with a similar budget to a new home, a used home can offer better location and larger size.
② Easier to check neighbors and living environment
Even if the house is perfect, compatibility with neighbors can vary.
Since moving out easily is difficult, being able to check who your neighbors are is reassuring.
With used homes, you can ask about neighbors and actual living conditions before buying, helping avoid future troubles.
③ Can renovate to create a customized home
Renovation helps reduce resistance to used homes and allows you to add stylish designs like “simple modern” or “natural modern” often seen in custom-built homes.
Depending on the structure, you can also change the layout, such as removing walls for an open living space or installing an open kitchen.
■Disadvantages of Used Homes■
① Home inspection costs money
② Renovation costs
③ Less warranty than new homes
① Home inspection costs money
Many buyers worry about defects or equipment breaking after moving in.
It’s important to check the condition, especially for older houses.
You can hire a third-party home inspection to assess the property.
This provides peace of mind by detecting deterioration that might be hard to see.
② Renovation costs
Depending on the condition of the kitchen, toilet, wallpaper, etc., renovation costs can be high.
Older properties often need expensive renovations before moving in.
Check carefully for structural issues like termite damage or leaks.
③ Less warranty than new homes
New homes come with a legally required 10-year warranty for major defects such as leaks.
Other warranties for equipment vary from 2 to 5 years depending on the builder.
Used homes usually have shorter warranties, often only 3 months.
Check warranty periods and details carefully to buy a home you can live in安心 (with peace of mind).
■Important Points to Check When Unsure■
・Include all additional costs besides the property price when simulating your budget.
If you can afford a new home price with some effort, simulate the total including additional costs.Additional fees for new homes are usually about 5-10%.
For a 30 million yen home, that means about 1.5 to 3 million yen in extra costs.
If extra costs make the budget tight, reconsider the property price.
・For used homes, compare the total of property price plus renovation costs.
Even if the property price is low, renovation can add a lot.
If you consider an older property, check estimated renovation costs carefully.
・Discuss with your family the priority order of “price,” “location,” and “size.”
What is important varies by lifestyle and work style.By setting priorities together, it becomes easier to decide between new and used within your budget.
■Buy the Home That Lets You Live Your Ideal Life■
We’ve explained the pros and cons of new and used homes.
To buy a home that makes your family smile, imagine your ideal lifestyle.
SeaHome puts customers first and provides honest support to meet your needs.
SeaHome is a community-based real estate company centered in Kanagawa Prefecture.
Please feel free to contact us anytime.
