New Build Property vs a Resale on Costa del Sol

New build homes could cost a bit more initially tax wise and their prices are non negotiable, but what about the cost of your property in the long run? New build vs resale property – which one is more economically reasonable and makes more sense for you?

Buying a home is probably one of the biggest decisions you will every make in your life. Considering that making an uniformed decision about what kind of property you buy could save you plenty of time and possible future regrets. Many of us can´t wash off the emotional side when buying a property, especially if we want to make it our home. We could be impressed by a shiny kitchen that can blur our sight for the lack of closet space that will become an essential part of our daily life. You can always change the kitchen with the one of your dreams but sadly you can´t upgrade it´s size.

This is also valid when deciding if you should purchase a resale property or a newly build one as some of the differences they have might become essential in the future. We will look through the pros and cons of both resale and new build homes on Costa del Sol.

Pros of Buying a Resale Property

Some of the resale properties on Costa del Sol are as if taken from a post card – they keep the spirit of the Andalucian culture. The ones build around the 1980´s with beautiful mature gardens, flowers and palm trees contrasting with their white facades. You can easily imagine yourself enjoying the sun by the pool of your hacienda style estate. So here are the pros:

1. You will pay less taxes. Compared to a new property which you pay 10% VAT plus extra notary and lawyer fees the transfer tax for a resale is 7% (going up to 9% depending on the price of the property).
2. You get more variety to choose from – there are more resale properties compared to newly build on the market.
3. You can negotiate the price. As you are purchasing from a private person most of the times you could place on offer on the property and achieve better than the asking price.
4. A project to remodel. If you are a fan of interior design a beautiful Andalusian home could become your creative project and you can remodel it and modernize it to fit your personal taste.
5. You might get a better location. Considering all construction starts from the sea and foes towards inland naturally the older properties are closer to the beach and amenities.
6. On a square meter basis resale properties are typically less expensive. You will get more space for your money.

Summary

Resale properties could be cheaper per square meter, involve less purchase costs and their price is negotiable.

Cons of Buying a Resale Property

There are always pluses and minuses about everything in life so here are some points to consider that could help you when making your decision.

1. You have no guarantee. You can´t be entirely sure about the condition of the property. You might need to deal with renewing the electric installation, old pipes or leaks and they cost a bunch to fix, not to mention the mess.
2. Not energy efficient. Older properties do not comply with the new energy efficiency standards which in the long term could end up making your property purchase more expensive.
3. No insulation. Aside of higher electricity bills you might hear your neighbors a bit too well. Keeping in mind that Costa del Sol is a holiday area this can definitely destroy your summer experience.
4. No elevator. Not always but it could be the case in the center of towns such as Marbella and Estepona or with properties build earlier than the year 2000.
5. Problems with the first occupation license on Costa del Sol. Many properties in Marbella and East of Marbella have this issue. They are legally build and suitable to live in but the lack of this document could at times affect your purchase if you need to buy a house with a mortgage.
6. It will be harder to sell later on. With age old properties will naturally become older and therefore more issues will probably come up. This and the newer options around could make your old home less attractive. Eventually you might need to compromise with the price you want to sell to unless there has been a renovation.

Summary

Resale properties might end up costing you more in the long run as they are less energy efficient and could require major renovations. They could be harder to sell at a later stage.

Pros of Buying a New Build Property

The stunning modern architecture, sleek design and clean lines of the new build homes cannot stay unnoticed. So here are some pros of purchasing a new build home:

1. You get a guarantee. As every new product when you buy a brand new home from a developer they will fix any issues that come up for a certain period of time.
2. Energy efficient new complexes with solar panels and insulation. A new build home will save you plenty from utilities. All new build properties comply with the latest EU standards and most of them have the BREEAM sustainability certificate.
3. Better sound proof will give you privacy and tranquility.
4. You get all the extras of modern living. Large windows from top to bottom. Living spaces integrated with the terraces. Open plan living. Brand new modern appliances. Smart home system. You name it.
5. No need of renovation. You will not have to move a finger for many years ahead. You simply need to like the property and furnish it according to your personal taste.
6. If you purchase a property off plan you can achieve a very attractive price. It usually rises significantly after the development is delivered so you can make a bit extra when you sell it.
7. New build properties are currently more desired on the Costa del Sol.
8. If you purchase in a growing area with time the value of your property will increase.
9. Disabled friendly – new build properties are more suitable for people with issues with mobility. There is always an alternative to stairs including an elevator.

Summary

A new build property could cost you less overall as they save you plenty from utilities in the long run. Buying off plan will increase your property value when completed.

Cons of Buying a New Build Property

There are always pluses and minuses about everything in life so here are some points to consider that could help you when making your decision.

1. Buying at an off plan stage has some risk of you end up not liking the property when delivered. Although all developers have incredible tools to present the property exactly as it will be. Aside the virtual tours and images to replace your imagination you will need to make sure you see the quality specifications and check the materials in real life.
2. Some of the new developments are not in well established areas where you will need to drive to get to amenities.
3. You will pay 10% VAT + some extra costs when purchasing a new home.
4. You won´t know your neighbors at the time of the purchase. As new build complexes don´t have everything sold you most likely won´t know who your neighbors will be.
5. Community fees will be decided later on. You will not know your monthly cost for maintenance because it will need to be decided when all properties have been sold in the complex through a vote of all owners.
6. You will have to pay what the developer asks. All prices are non negotiable. There are available price lists carefully calculated. There could be at one point an overall reduction of all properties but that rarely happens especially in an active market.

Summary

New build property prices are non negotiable and you will pay a bit higher price initially due to the higher tax. You won´t know your neighbors and monthly community costs in advance.