What is better for me to buy a new house or renovate a second-hand one?
The purchase of second-hand homes is majority month by month. In the month of March, 81% of the sales were used housing
Source: www.elperiodico.com Autora: MARTA GRACIA
The decision to buy a home is one of the most important to take. Therefore, it is necessary to make a study before deciding on a property or another. You have to know in which area you want to buy the house, how many meters you need or if you want new or used housing. Currently, most of the homes purchased are used housing. Many of them must be reformed, so it is convenient to know which is better.
According to the latest data from the National Statistics Institute (INE), in March 42,649 sales transactions were carried out. 81.1% of these transmissions were made in used housing, that is, 34,604 second-hand homes. On the other hand, in the month of March the sale of 8,045 new homes was carried out.
Currently, "the issue of the rehabilitation of real estate is very fashionable," says María Alcázar, head of Development and new business of Casaktua, and explains that there are companies and television programs that sell that you no longer have to buy the house of your dreams, but you can make it yourself. "It is a blank paper that you can buy, it has become very fashionable for this," says the head of Casaktua.
Ferran Font, director of Estudios.com floors, explains that “a new home will always be more attractive at first, given that the buyer is reluctant to face tedious works. However, in certain locations, it is more important to bet on rehabilitating a second-hand house. Not only will the owner be completely at ease after the reform and it will have been revalued in the face of a future sale, but it is very likely that the farm is located in a consolidated neighborhood ”
María Alcázar says that, currently, the purchase of second-hand homes is at a "very interesting" time. However, they have to assess whether the value of the property will increase after the reform. "You have to evaluate the prices in the area, since it will not be the same to reform in a central neighborhood of Madrid, than in one of the periphery of Huesca," he says.
That is why he insists that yes, first you have to see how much that reform will cost you and if you have the money for it. “If you have it, it will be more profitable, that if you don't have it and you have to ask for financing you have to count on the interests that will be charged for that money,” he explains. In this way, Alcazar points out that the red line that must be taken at the time of a used home is that it has no structure problems "because there you are not going to get in."
However, reiterate that if you get the opportunity to buy a property in a good area, but in which you could not afford a new home, "it is a good opportunity." And remember that if that property does not have major problems, "if it is only a face lift or small works that are really the ones that give value to a property such as the kitchen or bathrooms there, no doubt ahead."
María Alcázar sums up that "if you know how to take a good opportunity and don't have big problems, it is cheaper to take a second-hand home and rehabilitate it." The head of Casaktua says that you are going to make a short-term return, "much more than what you would take from a house that you would buy now."
HOW MUCH DOES IT COST TO REFORM A HOUSING ACCORDING TO THE AREA?
According to flats.com, the houses that need a reform are 62,520 euros cheaper than those of new construction: 148,800 euros on average compared to 211,320 euros. Taking into account that the average amount of a comprehensive reform is 22,704 euros, this would save 39,816 euros. They ensure that a brand new house will always be more expensive, while the price of a property with decades behind it could be negotiated based on the degree of reform that had to be carried out.
The price of the type of new construction home has risen 5.45% compared to 2018. If we compare the price reached in 2017, the increase would be 10.75%. With regard to the housing used to reform, it has experienced a rebound of 5.55% compared to last year and 7.43% compared to two years ago. In this regard, it is important to note that the budget for reforms has increased 5.2% compared to the previous year, while the price of a comprehensive reform has also risen 5.95%, which balances the possibilities.