Apartment in a New Building or an Old House: What to Choose?

More and more people are choosing new-build apartments when purchasing a home. A new apartment is a combination of prestige and modernity, which undoubtedly attracts buyers. Apartments in old houses are primarily low-cost and accessible. According to research conducted by KANTAR Group for Otodom.pl, about 30% of buyers who purchased a property on the primary market considered buying a resale property. So, what are the pros and cons of new-build and resale properties?

1. Property Features

The first and undeniable advantage of new housing is, of course, its novelty and freshness. When constructing a building, developers use the latest construction, insulation, and finishing technologies that meet all energy-saving requirements, as well as renewable energy sources and rainwater collection systems. All this significantly reduces utility costs in new buildings.

Another significant advantage when purchasing a new-build apartment is the ability to customize the apartment layout during the construction phase (at the foundation stage). If the property is purchased early, you can agree on a personalized project with the developer. However, for those who don’t like renovations, this can be a huge downside. They prefer to buy a resale apartment with ready-made repairs, finishing, layout, and even furniture, without the need to spend time and money on renovations.

More and more buyers of primary market housing prefer to purchase apartments with turnkey finishing. The apartment already has wallpapers, sinks, bathtubs, as well as doors and flooring. In some cases, the developer even equips the property with a kitchen set and lighting fixtures.

A new-build apartment ensures secure transactions and high-quality, modern, and durable materials. The main legal act regulating the activities of investors and the purchase of housing from developers is the “Developer Act” (Ustawa deweloperska), which guarantees that the buyer will not be deceived, will not lose their money, and will not be left without housing. A buyer who decides to purchase a resale apartment should use the services of a real estate agent and a notary. The notary checks the legal status of the property in the relevant Land and Mortgage Register Department (Wydział Ksiąg Wieczystych) for any encumbrances, debts, or third-party rights to the apartment.

A significant disadvantage of old brick and panel houses is the presence of outdated engineering networks, communications, and materials, resulting in a high degree of wear and limited service life. Many of them have already exhausted their operational resources. As a result, residents pay out of their own pockets to refurbish old networks and communications, eliminating the possibility of saving on utility payments.

2. Area and Location of the Property

Regardless of whether the apartment is new or resale, buyers primarily pay attention to the area and location. Resale properties are in a more advantageous position because obtaining permission to build a new building in the city center is practically impossible. Even if the developer gets such permission, the cost of the plot in such an area will be very high, so new buildings are most often erected in residential areas on the outskirts of the city. Developers compensate for the unfavorable location with other advantages. Resale housing can be purchased both in the center and in residential areas away from noise and pollution.

Another advantage of resale housing is the developed internal and external infrastructure. New buildings cannot boast such amenities. In the surroundings of new residential complexes, there are often not enough shops, schools, kindergartens, service enterprises, or pharmacies. New developments may also have inconvenient transport links. In the case of resale housing, such problems are less common. However, new buildings are often located near parks and forests, allowing residents to enjoy fresh air and outdoor activities.

3. Cost of Housing

Many buyers believe that primary market housing is more expensive than resale properties. The cost of a new-build apartment depends on the type of finishing. Most often, apartments are purchased in shell or pre-finished condition, requiring additional work and furnishing. Turnkey properties are ready for occupancy immediately after signing the contract and receiving the keys.

Based on data collected by Morizon.pl, we can conclude that a new-build apartment does not always cost more than a resale property. In some cases, a resale property with recent renovations can be more expensive than a new-build.

The price depends on additional buyer requirements, area/location, and the chosen type of finishing.

4. Property Ownership Rights

The final and very important step is signing the property purchase agreement and receiving the keys. In the case of primary housing, you can buy an apartment either at the “foundation” stage or after the building is completed. The first option requires patience, as you will have to wait before moving in. The second option allows you to move into your home immediately after signing the documents and transferring the payment. In the resale market, everything happens much faster—if the buyer has the necessary funds, they can move into their home within a few days after payment.

5. Necessary Expenses When Buying an Apartment

The main expense is the cost of the apartment itself, plus additional expenses related to the purchase of real estate. If the buyer decides to take out a mortgage, expenses will increase accordingly.

Additional expenses include:

• Funds for repairs and finishing;
• Apartment insurance;
• Banking service fees (if taking out a mortgage);
• Notary fees—according to tariffs (up to 2% of the transaction amount);
• Property transfer tax—2% of the property’s value (only when purchasing resale housing);
• Agency commission (if using the services of a real estate agent).

Conclusion: What to Choose?

It’s hard to give a definitive answer; each option has its advantages and disadvantages. If location isn’t a primary concern and you’re looking for housing near parks or forests, it’s better to choose a new-build apartment. A buyer seeking affordable housing with developed infrastructure and convenient transport links will likely find a suitable apartment on the resale market.

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