Existing or new building: purchase price, yield & Co. – advantages and disadvantages

Stock or new building – If one buys a dwelling, one asks oneself, apart from the question of own use or investment and net yield or investment real estate, whether one should invest in stock or new building. Both forms have their advantages and disadvantages. In this article, you will learn what they are.

Buying new construction: Is New Always Better?

New construction refers exclusively to completely, newly built objects. On the one hand, they are uncomplicated because everything is state of the art, resulting in a low risk of maintenance and repair costs. On the other hand, you have to expect significantly higher investment costs here, which means a low return on investment and a higher incidental purchase price payment.

Advantages of new construction

• Current state of the art
• Low risk for maintenance and repairs
• Co-determination in interior design

Disadvantages of new construction

• Higher purchase price and incidental purchase costs
• Lower rental yield
• High value loss at the beginning
• Other costs for public development

Buy stock: Old also has its advantages

Existing real estate has many advantages. In addition to a lower purchase price, you only have to pay a low amount of incidental purchase costs. However, due to the age of the building, there is a higher risk for maintenance and repairs.

Advantages of stock

• Low purchase price and incidental purchase costs
• Low use of equity capital
• Higher rental yield
• No costs for public development

Disadvantages of stock

• Higher risk for maintenance and repairs

Read more about existing or new building/ Immobilien-Erfahrung.de

Conclusion: Invest in new or existing buildings?

Whether new construction or existing depends on your individual goals. Nevertheless, existing properties with a higher return and a low purchase price and ancillary purchase costs are the more sensible investment to buy your first property.

The next step: Year of construction and condition of a property

You want to invest in an old building? Then you need to consider a few things before buying. Old properties have some advantages, but also disadvantages. We have compiled a brief overview of all the facts of the different construction years in comparison.