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Buying versus building property

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Buying an existing property or building a new one both have pros and cons, with opinions and advice from property experts being swayed by the ever-changing economy.

The property market is one of the most turbulent industries in the world, due to the fluctuations of the economy and other unexpected issues – such as the nationwide lockdown. As a property owner, it is important to consolidate your finances to ensure that you are in the right financial state to allocate money to purchasing a new home. There are many pros and cons to buying and building a property, and ultimately, it comes down to the individual’s financial affairs.

Buying a home allows you to know about the history of the estate and area from previous owners, in addition to opinions on the intricacies of the property. If the property is bought at a reasonable price, it could be cost-effective to renovate and give it a fresh and modern feel. Negative aspects of buying a house include having to move into a ‘lived-in’ space which may be partially damaged.

When buying a home from a developer, VAT is normally included in the price. There is no additional transfer duty to be paid on top of the purchase price, making the upfront payment a lot less. A newly built home also includes lengthy warranties, allowing you to gradually amend issues in your property whilst readjusting the finishes to your personal taste. Negative aspects, however, include having no previous knowledge on your new home, and having to live with a trial and error mentality throughout the first couple of years to iron out the kinks.

Sayushka Naidoo
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