Unfortunately some of the advantages of buying a new house (it's brand new, can choose the kitchen and bathroom, etc) are lost as soon as they're bought, so in effect they depreciate just like almost-new cars. There will always be a *newer* house being built. Of course, this initial depreciation is usually more than offset by a rising housing market - but especially in London and the South-East of England, where many believe property is considerably over-valued, that rising market is not assured.
Because there is a fixed (or shrinking) supply of period properties with character, they are more likely to hold their value.
Disadvantages to a brand new house (apart from space, plot size etc):
- There is nothing you can do to it that will increase its value quickly, so you cannot make a profit or gain equity in a falling market. If you buy an older house there is much greater potential for increasing its worth, whether it's just a repainting job or full restoration.
- The garden will not be established.
- Estate planning covenants that prevent you having anything taller than a blade of grass in the front garden and the like.
| I was a little surprised to see how badly finished some of the | showhomes were (considering they are supposted to be 'show' homes - | the name gives it a away, really) and it got me to wondering, just how | well made are new houses?
A friend's new house (a housing association shared ownership development in Milton Keynes) was, I thought, very well finished throughout especially considering it would be very much built to a budget. (That was after the sewer flooding the patio was sorted out.) But just because it was immaculately plastered didn't stop it being immaculately-plastered ticky-tacky.
Owain