New building or "secondary": what is better to buy?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

One of the main questions that many home buyers have is the choice between a new building and a "secondary". The choice is seriously complicated if the prices of both types of apartments do not differ much. Each option has its pros and cons, so buying a home should be approached very responsibly. This is an apartment, after all, and some of them can cost hundreds of thousands of dollars.

New building or "secondary" - which is better?

Primary housing is an apartment that was not previously registered to anyone. In fact, they often try to sell apartments that have not even been built as primary housing.

Note that the sale of apartments in houses that are just being built or planned for development is regulated by Law No. 214-FZ. This law obliges the developer to build a house and put it into operation, transferring the program participants (buyers) the apartments (objects) fixed in the contractconstruction).

After putting the house into operation, a signature is put under the act of acceptance and transfer of the object. At the same time, buyers will have to register the ownership of the apartment in the new building. After the certificate of state registration is received, the status of housing will automatically change from primary to secondary.

What is a "second hand"?

Reseller housing is an apartment that belongs to someone, that is, it is the property of an individual or legal entity. In this case, the apartment can be private, municipal or state. But it is still a second home. Therefore, even new apartments that were built six months or a year ago are already considered secondary housing, although in fact they are new. Therefore, initially it is impossible to say which is better - a new building or a "secondary", because both apartments can be new.

As for municipal apartments, people can live there through a social contract of employment. They do not have a certificate of state registration, but the housing where they live is still considered secondary, since they still have an owner - the municipality.

Criteria for comparing both types of apartments

It is impossible to determine exactly what is better to buy - a "secondary" or a new building, because there are no obvious advantages for primary housing over secondary housing. Everything will depend on the situation and conditions. If you want to make the right choice and finally decide for yourself what is more profitable - a "secondary" or a new building, thenconsider the following criteria:

1. Cost. If we talk about the "primary", then there is a pattern: the cost per square meter of housing depends on the stage of construction of the facility. At the earliest stage, the cost per square meter will be low, and this is the main advantage of primary housing. The price of the "second hand" is always higher, and there is no way to bring down this fixed price.
2. Timing. When purchasing secondary housing, you can move into it immediately after the conclusion of the transaction. But with the "primary" it is not possible. If the buyer concludes a deal and buys a home at the stage of digging a foundation pit, then you will have to wait another two years. If you conclude a deal at the stage of completion of construction, then the price per square meter will be higher, but you will have to wait only about three to four months.
3. Investments. When purchasing housing in a new building, it is offered to the buyer for a rough finish. This means that you will have to invest a lot of money in repairs, the purchase of building materials, the purchase of equipment and furniture. When buying an apartment on the secondary housing market, you can often find renovated apartments. And although repairs are most often cheap or old, such an apartment is quite livable. So the issue of further investment is relevant when choosing housing.
4. Assortment. The secondary housing market is much wider, and there are more offers here. Usually the most successful apartments in new buildings are bought up at the stage of excavation. By the end of development, the most unfavorable options remain for sale.
5. Registration. It is impossible to register in a new building, because in order to obtain a residence permit, you must either havecertificate of registration of ownership, or have a relative who is already registered in public housing.
6. Possible income. It has already been written above that the price per square meter grows in direct proportion to the stage of construction. Therefore, when investing at the excavation stage, the owner of future housing can make a profit of up to 30% per annum. This is the case if the construction goes without delay. The cost of secondary housing cannot be guaranteed to grow, but it changes due to market factors. However, you can earn money on a secondary apartment by renting it out. It is difficult to calculate the amount of profit in this case. It all depends on the cost, area and many other factors.
7. Mortgage. "Secondary" or new building can be taken in a mortgage. However, in the case of mortgage lending for an apartment in a new building, there are many different difficulties. Banks try not to issue loans for the purchase of apartments that are not yet completed, as there is a risk that they will never be completed at all. One or several banks at most can issue such a loan, and the conditions for this may be unfavorable. Typically, the rate for primary housing is 2-3% higher compared to the rate for secondary housing.
8. Legal purity. When purchasing a new home, you can be 100% sure that it is clean from a legal point of view. No one has lived in it before, and the buyer here is the new owner. Apartments on the secondary market had owners, sometimes several. And often it is not known what kind of people they were and what they did in the apartment.

Besides, in new buildings there are always fresh communications and engineering systems. In the secondary market, communications can be worn out and require replacement, so in this case this is an advantage in favor of a new building. Also, when purchasing a “primary” property, there is a very low chance that a drug addict or alcoholic will live nearby.

Risks

When purchasing an apartment in a new building under construction, there is a risk that the construction company will go bankrupt and the construction will not be completed. In this case, you can not take your money back. It is unrealistic to foresee. Practice shows that quite often construction companies delay the delivery of housing, and buyers can do nothing about it. Of course, the government is trying to reduce this risk by considering laws on compulsory insurance of developers against bankruptcy. But there is still a risk, and even delay pen alties do not stop the developer from delaying the deadlines. When choosing between a new building or a "secondary", you need to remember these risks. But if the developer is trusted and has authority, then the risk of acquiring housing from him is sharply reduced.

However, there are risks in the secondary housing market too. They are related to the execution of the contract of sale. This contract can be terminated in court after the buyer has paid all the money. There are also cases when third parties with legal ownership of real estate appear. In this case, the contract of sale may again be terminated, and the transaction will be declared invalid. In this case, you will lose your money andstay homeless. Fortunately, all these risks can be mitigated with the help of a competent lawyer, but his services can be expensive.

Pros of a new building

Apartments in new buildings have the following advantages:

1. They are made of modern materials. This indirectly means that they are more durable and reliable.
2. They are well designed and almost always spacious.
3. The layout is comfortable and made in accordance with modern standards.
4. The landings are clean and large. The same applies to entrances.
5. All apartments have double-glazed windows.
6. Water and gas meters are everywhere.
7. There are working elevators, some houses even have freight elevators.
8. There is parking underground and in the yard.

The price of a new building as the main advantage

All these advantages are small compared to the most important advantage - cost. The highest popularity of primary housing provides the price. If you buy such an apartment at the excavation stage, then an apartment in a new building can cost 30% less than the exact same apartment on the secondary housing market. That is, if a conditionally good "secondary" costs 100 thousand rubles (the price is taken as an example), then the same "primary" will cost only 70 thousand. True, she will have to wait for about a year, or even two.

Living space and enhanced security

Another argument in favor of"primaries" - a large living area. Modern projects provide for residents a large area. For example, the most popular new panel houses in Russia (P-44T series) provide for a minimum area for one apartment equal to 38 "squares". But in an old panel house, the area of \u200b\u200ba one-room apartment can be 30-33 square meters. This was the standard at the time this old house was built.

Still don't know which is better - "second hand" or new building? Then here's another argument for you: in new buildings, new safety requirements are observed, new technologies and materials are used. There is also a guarantee for some elements: ceiling, engineering equipment, walls and windows. If within five years a tenant encounters problems that are not related to improper operation of housing, then he can contact the developer and demand to eliminate the defect and pay compensation for the damage caused.

Legal cleanliness of housing

When choosing which apartment to buy - a new building or a "secondary", you must also remember that secondary housing may have a "dark past" in history. But new buildings are legally always clean, and you don’t have to worry that some relative of the seller with the rights to your apartment will appear. The only risk is associated with the possible loss of money during the construction of housing at the stage of excavation. But in case of problems with the developer related to the implementation of engineering networks or documentation, this will simply postpone the deadline for the completion of the facility. The likelihood that the developer will go bankrupt is small. Most likely, he will be insured against bankruptcy altogether. However, there are generally sad cases when, for some reason, the developer freezes the object, and then people who bought apartments in an unfinished building do not receive them and cannot return the money back.

Infrastructure and landscaping

Also, when buying an apartment in a new building, there is a chance to get into a part of the city with poorly developed infrastructure. Usually, the developer initially puts into operation a residential building, and only years later shops, schools, kindergartens and other objects appear around it. Therefore, when buying such housing, you need to understand that at first you will have to travel for groceries. Although if a new building is being built in the city center, then the cost of an apartment there will be very high.

Another disadvantage is the lack of amenities. An apartment in a new house is a concrete box even without utilities. There is nothing here, so you will have to invest money and effort in landscaping.

Pros of "secondary"

When choosing between a new building or a "secondary", you must also remember the disadvantages and advantages of the latter type of housing. Let's start with the pros:

1. The ability to immediately move into the apartment that you just bought.
2. In such an apartment there will be engineering communications and some kind of repair, which already allows you to live here.
3. Large assortment. The secondary housing market is huge, and you can often choose between different options. And it is possiblefind an apartment that is close to the metro and has a great view from the window.

Cons of apartments on the secondary housing market

Of course, all these advantages often push buyers to consider the secondary housing market. But, talking about which apartment is better - a new building or a "secondary", you must definitely point out the cons:

1. High price per square meter.
2. A long story that may hide unpleasant facts. In order to definitely buy good housing without legal problems in the future, you will have to invest in a professional lawyer who can check the history and “cleanliness” of the apartment.
3. Retaining walls may have become weak over the course of their life.
4. Engineering communications are old and may soon require replacement, or they may work for another decade.

Dilapidation of the house as a possible disadvantage

However, weak walls and utilities can be in a house that was built 20-25 years ago. Despite the attractive appearance of the house, its general condition may be poor, therefore, when buying a home, it is advisable to check the engineering systems and the strength of the house itself. To do this, you will have to spend money on expert assessments of specialists. Sometimes the situation may turn out so that you will have to spend half the cost of the apartment to replace communications and carry out work to strengthen the structure of the house. Therefore, it is worth thinking carefully about which apartment is better to buy - a "secondary" or a new building. There are pluses and minuses both there and there. It is impossible to generalize which is better. It is necessary to compare specific apartments in the old house and the new building.

Do reviews matter?

The last criterion that will help you choose a resale or new building is the feedback from residents and buyers! For example, if a builder is building a new house, be sure to read reviews about it. Buyers may speak negatively about him, as in the past he greatly delayed the construction process. If the developer is new, then you should not particularly trust him either, but if he has an impeccable reputation and good reviews, he can be trusted.