Buying a property is one of the most important decisions you make in life. This decision is influenced not only by financial considerations, but also by personal preferences and long-term goals. Two of the most popular options when buying real estate are new builds and existing properties. Both have their specific advantages and disadvantages that need to be considered. In this article, we highlight the differences, advantages and potential disadvantages of new-build and existing properties to help you make an informed decision.
Definition: New build vs. existing property
What is an existing property?
What is an existing property?
An existing property is a property that has been used for a long period of time and is no longer considered new. These properties are often several decades old and can vary greatly in terms of building fabric, style and technology.
- Age structure: Depending on the year of construction, existing properties can have a very different age structure. Houses built before the Second World War often have solid construction methods and characteristic stylistic elements. Buildings from the 50s and 60s often have more functional designs, while houses from the 70s and 80s already have modern comfort standards.
- Building fabric: The building fabric of existing properties is a decisive factor. Older buildings can have charming features such as high ceilings, stucco decorations or solid wooden floors. However, there may also be signs of wear and tear, moisture damage or outdated electrical and sanitary installations.
What is a new building?
A new build is a property that has been constructed to modern building standards and often meets current energy efficiency and safety requirements. New builds are usually built after 2000, with many current projects using advanced technologies and sustainable materials.
- New construction projects: New construction includes both single-family homes and multi-family homes built in new neighborhoods or through infill development in urban areas. A building is considered new construction if it has not yet had any residents and was built according to the latest statutory building regulations.
- Modern standards: Modern new builds are energy efficient, often equipped with high-quality insulation, triple-glazed windows and advanced heating systems. They are also often prepared for smart home technologies, which makes them future-proof.
Costs and financing
Purchase cost
When buying a property, the acquisition costs are one of the most important factors.
- Existing property: The purchase price of existing properties is often lower than that of a new build. This is because the market value of a property can fall over time due to wear and tear and age. However, potential buyers should take into account the costs of renovations and modernizations. These additional investments can significantly increase the total cost.
- New build: New builds generally have higher initial costs as they are built with modern fixtures and fittings and to current standards. However, the high initial investment is often offset by lower operating costs and the reduced need for renovations. New builds also offer the advantage that the buyer does not have to face unexpected renovation costs.
Incidental costs
The incidental costs of buying a property should not be underestimated, as they make up a significant proportion of the total costs.
- Estate agent fees, notary fees and land transfer tax: These costs are incurred for both new builds and existing properties. However, estate agent fees can often be waived for new builds purchased directly from the developer.
- Conversion or modernization costs for existing properties: For older properties, buyers should factor in the costs of any necessary modernization work. These can involve considerable sums, especially if energy-efficient renovations, new heating systems or a renewal of the electrics are required.
Energy efficiency and sustainability
Energy consumption in comparison
Energy consumption is a key aspect when choosing between a new build and an existing property, as it has a significant impact on running costs.
- Existing properties: Older buildings often have higher energy consumption as they were not built to the latest energy standards. Many existing properties have outdated heating systems, inadequate insulation and single-glazed windows, which can lead to high heating costs.
- New builds: New builds must comply with strict energy standards. They are often equipped with modern insulation, energy-efficient windows and advanced heating systems that minimize energy consumption. Many new builds also use renewable energy, such as solar energy or heat pumps, which further reduces operating costs.
Environmental balance
The environmental footprint of a property is increasingly becoming a decisive factor for environmentally conscious buyers.
- Sustainability in construction: New buildings are often constructed using sustainable materials and techniques. The use of recycled or recyclable materials, energy-efficient construction methods and environmentally friendly heating systems contribute to a positive environmental balance.
- Life cycle of a property: While existing properties often have a poorer environmental balance due to their age, comprehensive refurbishment can improve this balance. On the other hand, demolishing old buildings and building new ones can also be problematic from an environmental point of view, as this is associated with high energy and resource consumption.
Comfort and quality of living
Room layout and design
The quality of living is largely determined by the room layout and design of the property.
- Existing property: Older houses often offer spacious plots and a classic room layout with separate living areas. This layout can have advantages and disadvantages: On the one hand, they offer clear structures; on the other, they can be less flexible to meet modern living requirements, such as open-plan living concepts. The room heights are often higher than in modern buildings, which gives a feeling of spaciousness.
- New build: New builds are often designed for modern lifestyles. Open floor plans, large window areas and multifunctional rooms are characteristic of many new builds. These living concepts are designed for flexibility and optimal use of living space. Accessibility is also often a standard feature of new builds.
Technical equipment
The technical equipment of a property makes a decisive contribution to its comfort and functionality.
- Modern technology: New buildings are often equipped with the latest technical standards. This includes smart home systems, energy-efficient heating and cooling systems and high-quality materials that not only offer comfort but also a longer service life.
- Existing properties: Many existing properties have undergone technical improvements in recent decades, but these cannot usually keep up with the equipment of a new build. Modernization is often necessary to raise the technical standard, which means additional costs and planning effort.
Location and infrastructure
Existing properties: Established locations
The location is one of the most important factors when buying real estate, as it has a decisive influence on the value and quality of life.
- Central locations: Existing properties are often located in established residential areas. These locations generally offer a good infrastructure with short distances to schools, doctors, shopping centers and public transport. Demand for such properties is generally high, as the locations are considered attractive and valuable.
- Social infrastructure: As existing properties are located in already developed areas, the social infrastructure is usually well developed. In addition to transport links, this also includes cultural and leisure facilities that enrich life in the area.
New buildings: Growth regions
New buildings are often built in growth regions or in newly developed residential areas, which brings both advantages and disadvantages.
- New residential areas: These areas often offer modern and homogeneous development. The infrastructure is developed in parallel with the residential development, which means that buyers may have to wait for schools, shopping facilities and transport links to be completed. On the other hand, they can benefit from modern planning and a quiet environment.
- Development potential: New builds in growth areas can offer significant potential for value appreciation, especially if the area is developing positively. However, there is also a risk that planned infrastructure projects or developments may not progress as expected, which can affect the quality of life and property value.
Increase in value and resale value
Long-term performance
The performance of a property is a decisive factor for long-term investment planning.
- Existing properties: Historically, existing properties in attractive locations have shown solid value growth. However, the increase in value depends heavily on the location, the condition of the property and the general real estate market. In established locations with good infrastructure, the value of existing properties can remain stable or even increase, especially if modernization work is carried out.
- New builds: The initial advantage of new builds is that they often perform well in the first few years after purchase, especially in high-growth regions. As they meet modern standards, they usually have less depreciation in the first few years. However, the long-term increase in value depends on the general market trend and the quality of the location.
Market trends
The real estate market is dynamic and subject to constant change, affecting both new builds and existing properties.
- Real estate market analysis: Current trends show that new builds are in high demand in many cities as they offer modern lifestyles and high energy efficiency. In rural areas or smaller towns, however, the market for existing properties can be more stable, especially if they are well maintained and in attractive locations.
- Demand: Demand for new builds is particularly high in large cities and conurbations, where modern and energy-efficient living concepts are in demand. In rural regions, on the other hand, there may be stronger demand for existing properties, especially if they offer traditional charm and are in a natural location.
Legal aspects and warranty
Warranty obligations
Legal aspects play a major role when buying a property, especially when it comes to warranty and liability.
- New buildings: New buildings are subject to statutory warranty periods, which are generally five years. Within this period, the developer is obliged to rectify any defects resulting from construction faults. This offers buyers a certain degree of security, as they do not have to pay for the rectification of defects in the first few years after purchase.
- Existing properties: There are no comparable warranty periods for existing properties. The buyer must rely on the condition of the property as it is at the time of purchase. It is therefore advisable to carry out a thorough inspection of the property prior to purchase in order to identify any defects and refurbishment requirements at an early stage.
Building law requirements
Building regulations can vary in strictness depending on the type of property and should be taken into account when making a purchase decision.
- Permits and requirements: New buildings must comply with all current building regulations, which guarantees the buyer a modern and legally secure property. Older building regulations may apply to existing properties, which can lead to challenges in the case of planned conversions or modernizations, for example.
- Listed existing properties: If the existing property is a listed building, buyers must comply with special requirements. Conversions and modernizations can be heavily regulated here, which can entail additional costs and planning effort.
Emotional aspects: Charm vs. modernity
Historical charm of existing properties
The emotional value of a property is often underestimated, but plays a major role in the purchase decision.
- Patina and history: Existing properties often have a special aura and tell stories from times gone by. The patina of an old house, original building elements and historical details give these properties a unique charm that new buildings cannot offer.
- Individuality: Every existing property is unique. The individuality of such houses, from the architecture to the location, can be a decisive advantage for many buyers, especially if they appreciate something special and historic.
The appeal of the new
New builds have their own appeal, which often lies in the modern and untouched nature of these properties.
- Design options: With new builds, buyers often have the opportunity to incorporate their own ideas and wishes from the outset. From the room layout to the choice of materials and technical equipment, many details can be designed according to individual requirements.
- Start a new life: A new build offers the advantage that everything is fresh and unused. This gives many buyers the feeling of a genuinely new start, free from the influences of previous occupants. This feeling can be particularly attractive if you want to make a clean break and start a new chapter in your life.
Flexibility and adaptability
Existing properties: adaptations and modernizations
Existing properties offer a certain degree of flexibility, but also restrictions when it comes to adaptations.
- Renovation and conversion costs: Existing properties can be adapted to your own needs through renovations and conversions. However, this work can be time-consuming and cost-intensive, especially if there are structural constraints such as load-bearing walls or outdated installations.
- Structural constraints: In older buildings, structural elements such as load-bearing walls or historical building regulations can restrict flexibility in room design. The integration of modern technology can also be challenging in such cases.
New buildings: Planning as desired
New builds offer the greatest flexibility when it comes to adapting to individual needs.
- Individual design: Buyers of a new build often have the opportunity to influence the design as early as the planning phase. This ranges from the choice of floor coverings and the color of the walls to the selection of technical systems such as smart home installations.
- Future-oriented construction: New buildings can be designed to meet future living needs. Accessibility, the possibility of later expansion or adaptations to changing family circumstances can be taken into account at the planning stage.
Tax advantages and funding opportunities
Funding programs
The state offers various subsidy programs that can support the purchase and construction of properties.
- Energy-efficient construction: For new buildings that are particularly energy-efficient, there are government subsidy programs and low-interest loans, for example from the KfW Bank. These can reduce construction costs and make the purchase of a new build more financially attractive.
- Refurbishment grants: There are also numerous funding opportunities for the refurbishment of existing properties, particularly to improve energy efficiency. These can significantly reduce the costs of energy-efficient renovations or the replacement of old heating systems.
Tax advantages
Tax aspects can influence the total cost of buying a property.
- Depreciation options: For new builds, there are opportunities to deduct certain costs for tax purposes, such as the AfA (Absetzung für Abnutzung) for rented properties. Refurbishment costs for existing properties can also be claimed for tax purposes under certain conditions.
Conclusion: Decision-making aid
Set personal priorities
The decision between a new build and an existing property depends heavily on personal priorities and life situation.
- Life dreams vs. realities: Think about what is more important to you in the long term – the historic charm of an existing property or the modern features and flexibility of a new build? Are you prepared to invest more money and time in a renovation, or do you prefer a property that is ready to move into immediately?
- Long-term perspective: Think about how your life situation could change in the next few years. Are you planning to have a new addition to your family or to retire? A new build can offer the flexibility to adapt to these changes, while an existing property may require more work and adjustments.
Weighing up the pros and cons
Both options have their advantages and challenges.
- New build: New builds offer energy efficiency, modern technology and the opportunity to design your home according to your own wishes. They are generally more expensive to buy, but have lower operating costs and offer a high degree of future security.
- Existing property: Existing properties can be more attractive in terms of price and often offer a unique charm. However, they may require renovations and adaptations to meet today’s standards. The choice depends on your individual preferences, financial means and long-term goals.
FAQs
Existing properties are often cheaper to buy, but may require additional costs for renovations and modernization. New builds are more expensive, but there are usually no renovation costs in the first few years.
Energy efficiency is an important factor, as it has a significant impact on ongoing operating costs. New buildings have a clear advantage here, as they are built to modern standards. However, existing properties can be upgraded through energy-efficient renovations.
New buildings offer more flexibility, as they can be designed from the ground up according to your own wishes. Existing properties offer less flexibility, especially if there are structural constraints or listed buildings.
No, existing properties have their own charm and can score points in established locations with good infrastructure. They are also often cheaper to buy. However, the condition of the property and the individual renovation requirements are decisive factors.
Location is one of the most important factors, as it strongly influences the value of the property and the quality of life. Existing properties are often located in established, well-developed areas, while new buildings are often constructed in growth regions.
Ja, insbesondere für energieeffiziente Neubauten gibt es oft staatliche Förderprogramme und Steuervorteile. Auch für Bestandsimmobilien, die saniert werden, können steuerliche Vorteile geltend gemacht werden.
Closing Words
Choosing between a new build and an existing property is not an easy decision and depends on many individual factors. It is important to consider not only the financial, but also the emotional and practical aspects. With the information presented here, you are now better equipped to make an informed decision that meets your needs and wishes.
