Buying New Construction vs. Existing Homes: What Do You Save On?

Buying a home is one of the biggest investments many people make in their lifetime. The choice between a new construction and an existing home affects finances, comfort, and long-term living quality. New constructions offer modern floor plans, energy-efficient installations, and low maintenance costs, while existing homes often provide more space for the money and are located in established areas with complete infrastructure, schools, and services. Understanding the differences between the options is crucial for making a decision that fits both your budget and lifestyle.

New construction often means you get a home with:

• New appliances and modern floor plans
• Materials that meet current energy requirements
• Lower operating costs thanks to an energy-efficient building
• Building defect insurance and maintenance plans that create stable fees

The biggest advantage of new construction is the peace of mind. You get a modern home with fewer surprises, which can reduce future costs and provide financial stability. Additionally, modern building codes mean that electrical and ventilation systems are often more energy-efficient, which positively impacts both the environment and your monthly costs.

The disadvantages of new construction are primarily financial. The price per square meter is often higher than for used homes, and the possibility of price negotiation is limited. Construction delays can create double housing costs if you have already sold your previous home. Associations with high borrowing can lead to rising monthly fees over time, which is important to include in your calculations.

What do existing homes offer?

Existing homes often offer more space for the same price and are typically located in established areas with complete services and public transport. Here, there is an opportunity to negotiate the price, and you can analyze the association's history, which provides insight into its finances, maintenance, and previous renovations. For those who prioritize an established location and more space, a previously inhabited apartment may be the most advantageous choice.

The disadvantages of an existing home can include higher operating costs, the need for renovation, and a lack of warranties. Hidden defects may only be discovered after the purchase, which can be costly if a proper inspection has not been carried out.

A simple financial comparison can provide a clear overview:

• New construction: Higher purchase price but lower fees and operating costs during the first few years
• Previously inhabited apartment: More space, established area, but higher maintenance and fees

In the long run, fees in new constructions can increase if the association is highly leveraged, while older associations have often completed major renovations and have more stable finances. Therefore, the choice is not just about price but also about lifestyle, risk appetite, and long-term planning. New construction suits those who want modern standards, security, and low initial maintenance costs, while an existing home is for those who want more space and insight into the association's history.

Consulting with a real estate agent is often crucial. A professional assessment can show which option best matches your budget and goals and provides security in the decision-making process.

We are here to provide personal advice and a comparison between new construction and previously inhabited homes. Your next home can be both smart and secure.