When buying a house or an apartment, many questions come to mind, and choosing between a new or used one is one of them.
Used properties are reputed to be cheaper, but the economic factor is not always the main point to consider.
The change in habits has caused a transformation in real estate projects, after all, people are increasingly looking for options that meet new needs.
The new apartments, for example, are increasingly modern and have larger social spaces, in addition to security and technology.
Check out the advantages and disadvantages of buying a new or used property in this post!
What is better to finance: new or used property?
The lower interest rate is making access to credit easier, meaning it is a good time to buy a financed property. Now, the question is: is there a difference between a loan for a used one and a new one?
When a loan application is made, basically three things are evaluated: the buyer, the seller and the property.
10 Common Questions About Real Estate Financing
In the first two, banks assess documents and the registration status (credit restrictions, tax problems, among others). In the case of the buyer, they also assess the income to prove the ability to pay the financing.
The third item evaluated is the property itself, which, in addition to having the documentation in order, must be in physical condition to be financed. That’s where the difference between a new property and a used one comes in.
Generally, new ones are easier to be approved, because if everything is up to date with the project, it means that it has a long useful life and compatible with the financing time.
In apartments purchased on the plant, for example, the entry fee can be distributed over the period of construction.
Advantages and Disadvantages of Buying Used Real Estate
Although used real estate is commonly cheaper, there are some disadvantages to consider:
The older the property, the greater the need (and expenses) for maintenance. The electrical and hydraulic parts can generate a very high cost of renovation.
Documentation and Financing
In used real estate, documentation can be a problem. If it’s not in order, it can hurt the funding. It’s a lot more work. In order not to make mistakes and avoid headaches, it is necessary to pay attention to documents, such as the Certificate of Real Encumbrance of the Property, which informs if there is any restriction in relation to the sale of the property (judicial pending, mortgage and pledge, for example), between others.
Advantages and Disadvantages of New Properties
The launches bring some modernities that enhance the property, such as, for example, a leisure area (with swimming pools, gym and games room) and shared spaces (such as coworking).
Elo Caminhos da Lapa is an example of a development aligned with a modern lifestyle. An unprecedented urban complex in the city, with independent condominiums connected by the first Rua Jardim de São Paulo, full of leisure and convenience infrastructure.
In fact, buying an apartment directly from the construction company brings some advantages. First, it does not charge interest on the amount financed during the construction period of the project, while most banks only finance the acquisition of the property after the work is completed.
In addition to the ease in closing the deal, there is a high probability that the apartment will appreciate. Whoever buys the same apartment after it is built can pay more for it.
Therefore, you should not make such an important decision based only on the purchase price.
Learn more: Is it
worth buying an apartment directly from the construction company?
After all, which is more worthwhile: buying a new one or a used one?
As we have seen, there are advantages and disadvantages for both cases. You need to assess all angles, costs involved and current market opportunities. Balance your needs and expectations with your property purchase before making any decision.
Most common mistakes when buying the first property
The emotion of the moment and the lack of experience in the field can lead the buyer to make some mistakes that jeopardize the entire transaction. Here we list the main ones:
1. Not searching enough before buying
One of the most basic mistakes someone can make when buying their first property – and when buying any other item of greater value – is not researching enough.
It is good to keep in mind the size of the investment that this type of negotiation involves and that this plan is long term so as not to be carried away by the heat of the moment.
2. Not analyzing whether the amount fits in your pocket
From the moment you decide to buy a property and start looking for the best for your needs until the time you receive the keys or register the property in your name, you must maintain a strong commitment to your budget and respect the financial planning made since the beginning.
3. Do not search the builder and/or real estate history
As it is a transaction that involves high values, it is essential to know who the others involved in the negotiation are. Find out about the reputation of the builder or developer. See if it is well-regarded, certified and has recognized awards from institutions that assess the sector, such as Tegra Incorporadora.
4. Not considering the fees and taxes of this property
A classic mistake is to disregard extra expenses. There are several costs that go into the final bill, such as fees, interest, taxes and other additional costs.
5. Not reading the contract carefully
This seems obvious, but a lot of people still don’t have the necessary care when reading a contract like this. To avoid future problems, never sign the document before reviewing it in detail.