And how much of this will be offset by the lower maintenance costs we can expect in a new property?
A: You can expect to pay more for a new build. With house prices under pressure, the gap may well widen further. Traditionally, a price difference of around 20% has been expected. There are benefits to buying new as you get improved technology and, with that, cost savings. But new builds also require on-going maintenance although generally on a much smaller scale.
By way of an example, if buying an older house, you may need to upgrade the kitchen which can be quite costly whereas if you buy a new property, it will have a more modern and efficient kitchen. There is a maintenance saving with a new build but if you don’t do ongoing maintenance, even with a new build, that saving soon disappears. – Lance Gore, Spencer Gore Developments
A: There is no hard and fast rule but older blocks can sometimes come with larger maintenance issues and levies, which new developments don’t incur due to the improved buildability and building lifespan. – Jacques van Embden, managing director at Blok
A: Typically, a new property is priced to sell multiple units with the aim being to deliver more value than is available in the market. Now add the benefit of lower maintenance costs and state-of-the-art infrastructure, such as optic fibre and smart meters. – Stephen Porteous, SDP Consulting