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Are you hesitating between buying a new home or a property to renovate? Not always easy to decide, because each option has its advantages and its disadvantages. In this article, we take stock of the two possibilities to help you see more clearly and choose the solution that corresponds best to your needs and to your budget.

Advantages of a property to renovate

Buying a house that requires renovation is an ambitious project, especially if you plan to make it your main residence. Before getting started, it is essential to carefully weigh the pros and cons.

  1. An affordable purchase price: Renovation properties are generally cheaper to buy than new homes. The savings made on the purchase price can finance part of the renovation work. And if you carry out some of the work yourself, you can save even more.
  2. A fully customizable home: Renovating gives you the opportunity to shape your house according to your tastes: redesigning the interior layout (removing or adding walls, creating an open kitchen), adding comfort features (terrace, swimming pool), or even extending the living space (attic, basement, additional floor).
  3. Long-term energy savings: A comprehensive renovation significantly improves energy performance (for example: better insulation).
  4. Becoming a homeowner in the city center: In many cities, new homes are scarce or built on the outskirts. Renovating an older property is therefore often the only way to become a homeowner in the city center.
  5. Preserving the charm of the old: Many houses in need of renovation have a unique character: original architecture, quality materials, family history or sentimental heritage. Renovating makes it possible to preserve this charm while modernizing the interior, without resorting to new construction that may involve the destruction of existing spaces.

Disadvantages of a property to renovate

Despite its many advantages, buying a property to renovate also comes with some disadvantages.

  1. A longer delay before moving in: Renovations often make the house uninhabitable for several months. You therefore need to plan for temporary housing, which leads to additional costs and delays the moment when you can really enjoy your property.
  2. Unexpected budgetary or technical issues: Renovating an old house often brings surprises: weakened framework, cracked walls, humidity or insulation problems… These hidden defects generate extra costs that can quickly blow up the initial budget if they were not anticipated.
  3. A purchase price not always so advantageous: Well-located houses to renovate are in demand, which can drive their price up. They are therefore not necessarily cheaper than new builds, especially if major work is required.

Advantages of a new property

Buying a new home may seem more reassuring and comfortable, but this choice also has its limits. Let’s look at the main advantages and disadvantages of a new property.

  1. Compliance with energy and environmental standards: A new home meets the latest regulations on energy and ecology. Efficient insulation, effective heating, and sometimes even equipment such as solar panels, a heat pump or a rainwater recovery system help reduce energy consumption while improving daily comfort.
  2. Fewer renovation and maintenance costs: Unlike a property to renovate, a new property does not require major work for several years. The installations are modern, the pipes new and the materials durable. In addition, legal guarantees (for example ten years for certain defects) protect the buyer against unpleasant surprises.
  3. An almost ready-to-move-in home: Buying new often means moving into a turnkey property. The paintwork, flooring and kitchen are completed, or you can choose the finishes. This avoids long months of construction and allows you to enjoy your new home more quickly.

The disadvantages of a new property

  1. A higher purchase price: New generally costs more than old, for an equivalent surface. To that are sometimes added extras for certain finishes or options. Even if notary fees are reduced, the initial investment remains important.
  2. Little customizable: In a new home, especially in co-ownership, the margins of customization remain limited. You cannot choose the floors, the paint or the kitchen, and rarely modify the structure or the architecture. The result can seem standardized, especially in large real estate developments.

In summary: some criteria to look at before deciding

  1. The cost: A property to renovate may seem cheaper, but it is always necessary to add the price of the works and plan a margin for the unforeseen. Then compare with the price of a new or already renovated property.
  2. The comfort: New homes are modern and practical, but sometimes without particular charm. If you love the old and wish for a unique interior, renovation will allow you to create a home in your image.
  3. The delay: A new home delivered turnkey or an already renovated property is quickly habitable. For a house to renovate, you must count additional time before being able to move in.
  4. The location: Think about your priorities: city center, proximity to work, access to transport, to schools or to services like the hospital. The location remains one of the most determining criteria in value and in quality of life.

Renovate to resell: good plan or wrong calculation?

You want to renovate a property and resell it? To buy a property at a reduced price, renovate it to increase its value, and then resell it more expensive may seem an ideal operation. But this type of investment, often called house flipping, carries at the same time nice opportunities and important risks.

Advantages

  1. A high profit potential: If you buy a property below the market price and carry out relevant renovations, the capital gain at resale can be very interesting, sometimes in only a few months.
  2. A total control over the investment: You decide on the property to buy, the renovations to carry out and the resale price. This freedom allows you to adapt the strategy to your objectives and to your budget, contrary to other investments more rigid.

Disadvantages

  1. High financial risks: A bad estimation of the works or a resale less profitable than expected can transform the project into an important loss. The engaged capital is significant and not always liquid.
  2. A need for solid skills: Renovating requires good knowledge in construction, site management and negotiation. Without these skills, or without reliable professionals, the risk of cost and time overruns is high.

Conclusion

To choose between a new property and a property to renovate is not simple: each option has its assets and its limits.

  • Renovation often allows to buy cheaper, to personalize one’s home and to preserve the charm of the old, but it requires time, a well-managed budget and the capacity to manage the unforeseen.
  • The new offers comfort, modernity, conformity to energy standards and a faster entry into the home, but its price is higher and the personalization limited.

Before making a decision, it is therefore essential to evaluate four key criteria: the overall cost, the comfort sought, the delay of moving in and the location. No matter your choice, to buy a property remains always a durable investment and never a loss!

Sources 
blog.iadfrance.fr - Article 
blog.trior.be - Article 
neho.ch - Article 
neho.ch - Article 
raiffeisen.ch - Article