New building or "resale": which is better to purchase?

One of the main issues that many homebuyers have is about the choice between a new building and a secondary. The choice is seriously complicated if the prices of both types of apartments are not particularly different. Each option has its pros and cons, so you need to be very responsible in buying a home. This is an apartment, and the price of some of them can reach hundreds of thousands of dollars.

New building or "secondary housing" - which is better?

Primary housing is an apartment that was not previously issued to anyone. In fact, they often try to sell apartments that are not even built as primary housing.

Note that the sale of apartments in houses that are only being built or planned for development is regulated by law No. 214-FZ. This law obliges the developer to build a house and put it into operation, transferring to the program participants (buyers) the apartments (construction objects) fixed in the contract.

After the house is put into operation , a signature is put under the act of acceptance of the object. At the same time, buyers will have to register ownership of the apartment in the new building. After the certificate of state registration is received, the status of housing will automatically change from primary to secondary.

What is a secondary housing?

Resellers - this is an apartment that belongs to someone, that is, is the property of an individual or legal entity. In this case, the apartment may be private, municipal or state. But it is still secondary housing. Therefore, even new apartments, which were built six months to a year ago, are already considered secondary housing, although in reality they are new. Therefore, initially it cannot be said which is better - a new building or a "secondary housing", because both apartments can be new.

As for municipal apartments, people can live there through a social contract of employment. They do not have a certificate of state registration, but the housing where they live is still considered secondary, since they still have an owner - the municipality.

Criteria for comparing both types of apartments

It is impossible to determine exactly what is better to buy - a “secondary building” or a new building, because there are no obvious advantages of primary housing over secondary. Everything will depend on the situation and conditions. If you want to make the right choice and finally decide for yourself which is more profitable - a "secondary" or a new building, then consider the following criteria:

1. Cost. If we talk about the “primary”, then there is a pattern: the cost per square meter of housing depends on the stage of construction of the object. At the earliest stage, the cost per square meter will be low, and this is the main plus of primary housing. The price of the secondary is always higher, and there is no way to bring down this fixed price.
2. Dates. When purchasing secondary housing, you can enter it immediately after the transaction. But this is not so with the primary. If the buyer makes a deal and buys housing at the stage of digging a pit, then you will have to wait another two years. If you conclude a deal at the construction completion stage, then the price per square meter will be higher, but you will have to wait only about three to four months.
3. Investments. When purchasing housing in a new building, it is offered to the buyer for rough finishing. This means that you will have to invest a lot of money in repairs, the purchase of building materials, the purchase of equipment and furniture. When buying an apartment in the secondary housing market, you can often find renovated apartments. And although repairs are most often cheap or old, such an apartment is quite suitable for living. So the question of further investment is relevant when choosing a home.
4. Range. The secondary housing market is much wider, and there are more offers. Usually the most successful apartments in new buildings are bought at the stage of excavation. By the end of development, the most unfavorable options remain for sale.
5. Registration. It is impossible to register in a new building, because to obtain a residence permit you must either have a certificate of registration of ownership, or have a relative who is already registered in municipal housing.
6. Possible income. It has already been written above that the price per square meter rises in direct proportion to the stage of construction. Therefore, when investing in the pit stage, the owner of a future home can make a profit of up to 30% per annum. This is the case if the construction takes place without delay. The cost of secondary housing is not guaranteed to grow, but it is changing due to market factors. However, you can earn money in a secondary apartment, renting it out. Calculating the amount of profit is difficult. It all depends on the cost, area and many other factors.
7. Mortgage. Resale or new building can be taken in a mortgage. However, in the case of mortgage lending for an apartment in a new building, there are many different difficulties. Banks try not to issue loans for the purchase of apartments that are not yet completed, as there is a risk that they will never be completed at all. One or more maximum banks can issue such a loan, and the conditions may be disadvantageous. Typically, the rate on primary housing is 2-3% higher compared to the rate on secondary.
8. Legal cleanliness. By purchasing new housing, you can be 100% sure that it is purely from a legal point of view. No one has lived in it before, and the buyer is the new owner. Apartments on the secondary market had owners, sometimes several. And often it is not known what kind of people they were and what they were doing in the apartment.

In addition, new buildings always have fresh communications and engineering systems. On the secondary market, communications can be worn out and require replacement, so in this case this is an advantage in favor of a new building. Also, when you purchase the “primary”, there is a very low chance that a drug addict or an alcoholic will live nearby.

The risks

Buying an apartment in a new building under construction, there is a risk that the construction company will go bankrupt and the construction will not be completed. In this case, you can not take your money back. Foreseeing this is unrealistic. Practice shows that quite often construction companies delay the deadlines for housing rental, and buyers can not do anything about it. Of course, the government is trying to negate this risk by considering laws on compulsory insurance of developers against bankruptcy. But the risk is still there, and even the penalties for the delay does not stop the builder to drag out the deadlines. Choosing between a new building or a "secondary housing", you need to remember these risks. But if the developer is trusted and respected, then the risk of acquiring housing from him is sharply reduced.

However, there are also risks in the secondary housing market. They are associated with the execution of the contract of sale. This contract may be terminated in court after the buyer has paid all the money. There are also cases when third parties appear with legal title to real estate. In this case, the contract of sale may again be terminated, and the transaction will be declared invalid. In this case, you lose your money and remain without an apartment. Fortunately, all these risks can be mitigated with the help of a competent lawyer, but his services can be expensive.

Pros of a new building

Apartments in new buildings have the following advantages:

1. They are made of modern materials. This indirectly means that they are more durable and reliable.
2. They are well designed and almost always spacious.
3. The layout is comfortable and executed in accordance with modern standards.
4. The staircases are clean and large. The same goes for the porches.
5. All apartments have double-glazed windows.
6. Water and gas meters are everywhere.
7. There are working elevators, in some houses even freight elevators are provided.
8. There is parking underground and in the yard.

The price of a new building as a major advantage

All these advantages are small compared to the most important advantage - cost. The highest popularity of primary housing provides the price. If you buy such an apartment at the excavation stage, then an apartment in a new building can cost 30% cheaper than exactly the same apartment in the secondary housing market. That is, if a relatively good “secondary” costs 100 thousand rubles (the price is taken as an example), then the same “primary” will cost only 70 thousand. True, she will have to wait about a year, or even two.

Living space and increased security

Another argument in favor of the "primary" - a large living area. Modern projects provide for residents a large area. For example, the most popular new panel houses in Russia (P-44T series) provide a minimum area for one apartment, equal to 38 "squares". But in an old panel house, the area of ​​a one-room apartment can be 30-33 square meters. This was the standard at the time of construction of this old house.

Still don’t know which is better - a “secondary” or a new building? Then here is another argument for you: new buildings comply with new safety requirements, use new technologies and materials. There is also a guarantee for some elements: ceiling, engineering equipment, walls and windows. If within five years the tenant is faced with problems not related to the improper operation of the housing, he may contact the developer and demand that the defect be corrected and compensation be paid for the damage caused.

Legal cleanliness of housing

When choosing which apartment to buy - a new building or a “secondary building”, one must also remember that secondary housing may have a “dark past” in history. But new buildings are always legally clean, and you don’t have to worry about any seller’s relative appearing with rights to your apartment. The only risk is associated with a possible loss of money during the construction of housing at the excavation stage. But in case of a builder having problems related to engineering networks or documentation, it will simply postpone the completion date of the facility. The likelihood that the developer will go bankrupt is small. Most likely, he will generally be insured against bankruptcy. However, there are generally sad cases when, for some reason, the developer freezes the property, and then people who bought apartments in an unfinished house do not receive them and cannot return the money back.

Infrastructure and amenities

Also, when buying an apartment in a new building, there is a chance to get to a part of the city with poorly developed infrastructure. Typically, the developer puts into operation an originally residential building, and only after years after it shops, schools, kindergartens and other facilities appear. Therefore, when buying such a house, you must understand that the first time you have to go for groceries. Although if a new building is being built in the city center, then there the cost of the apartment will be very high.

Another minus is the lack of improvement. An apartment in a new house is a concrete box, even without utilities. There is nothing here, so you have to invest money and energy in the improvement.

Pros of the secondary

When choosing between a new building or a "secondary housing", you also need to remember the disadvantages and advantages of the latter type of housing. Let's start with the pros:

1. The ability to immediately enter the apartment you just bought.
2. In such an apartment there will be utilities and some kind of repair, which already allows you to live here.
3. A large assortment. The secondary housing market is huge, and you can often choose between different options. And you can find an apartment that is located close to the subway and has an excellent view from the window.

Cons of apartments in the secondary housing market

Of course, all these advantages often push buyers to consider the secondary housing market. But, arguing about which apartment is better - a new building or a "secondary building", you must definitely point out the cons:

1. High price per square meter.
2. A long story behind which unpleasant facts can be hidden. To accurately buy good housing without legal problems in the future, you have to invest in a professional lawyer who can check the history and "cleanliness" of the apartment.
3. Bearing walls during their lifetime could become weak.
4. Engineering communications are old and may soon require replacement, or they may work for another decade.

Decayed home as a possible flaw

However, weak walls and utilities can be in the house, which was built 20-25 years ago. Despite the attractive appearance of the house, its general condition can be poor, so when buying a home, it is advisable to check the engineering systems and the strength of the house itself. To do this, you will have to invest in expert evaluations of specialists. Sometimes the situation may be such that half the cost of the apartment will have to be spent on replacing communications and carrying out work to strengthen the structure of the house. Therefore, it is worthwhile to think carefully about which apartment is better to buy - a "secondary" or a new building. The pros and cons are both there and there. It is not possible to summarize which is better. It is necessary to compare specific apartments in an old house and a new building.

Are reviews important?

The last criterion that will help you choose a resale or a new building is reviews of residents and customers! For example, if a builder is building a new house, be sure to read reviews about him. Buyers can speak negatively of him, as in the past he dragged on the construction process. If the developer is new, then you shouldn’t trust him either, but in the case of his impeccable reputation and good reviews, you can trust him.