The Advantages of The Second House Compared to New House – Did you know that in buying a house there are many advantages and disadvantages. in buying an old house there are more advantages than buying a new house.
Buying a second home, especially a house for sale in a crisis like this, offers many advantages. Here are some of the advantages of investing in a second home and things to consider before buying.
The house building is finished
The houses for sale on the secondary market are already established, so you can see the shape and quality of the houses for sale. The shape and quality of the house certainly affects the selling price of the house.
On the other hand, when you buy a new house, you can only see the shape of the house for sale based on the picture from the brochure created by the developer.
The house is ready to live in
Usually, second-hand houses are sold in a ready-to-live condition, or at least livable. In contrast to the houses for sale by developers, who generally pivot, aka houses for sale before they were built.
Home Environmental Conditions Already Alive
Unlike the new house, the second house for sale by the owner usually has a ready-made environment and supporting facilities, such as having neighbors, social control, security systems, educational facilities, health facilities, places of worship, and other facilities. In addition, infrastructure for housing areas, such as roads, parks, electricity and water are already running.
In contrast, the houses for sale by developers in the primary market generally do not yet have a living social environment, facilities and infrastructure. Thus, residents need longer time to adapt because the social system has not been running normally. Making the home environment come alive takes a long time, unless the house is in an old housing development project.
House Prices Are More Slanted
Buying the owner’s house for sale on the secondary market certainly allows you as a potential buyer to have room to negotiate. Unlike the house for sale by the developer, which has a benchmark price and discounts of a certain amount.
Usually when the house is sold, the owner (seller) has set the ceiling price and floor price. The meaning of ceiling price is the highest selling price offered by the seller. While the floor price is the benchmark for the lowest price at which a house can be sold, of course this price is not disclosed to the buyer.
So, as a buyer, you must be observant about the condition of the home seller. Especially during a pandemic and crisis, which is a buyer’s market, where the buyer is king. Situations like this often require that the house be sold cheaply by the owner because they need money.
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The House Is Ready To Be An Investment
A house that is ready to live in can also mean that the house is ready to be rented out or the house is resold after being renovated. If the house is near campus, mall (shopping center), or office, you can rent the house. If the house is large enough, you can make it a boarding house (boarding house). For boarding houses, of course you have to prepare special management.
On the other hand, some second-hand home investors are looking for homes to be sold through auctions conducted by the mortgage lending banks. Houses sold through the auction channel are houses whose owners cannot pay mortgage installments to the bank (bad credit). These houses are usually sold in good condition and the prices are low. So with a little renovation, the house can be sold at a lucrative capital gain.
Smaller Investment Risk
A living home environment with all the amenities allows you to measure the investment risk when the house is sold or offered by the owner. Usually, houses that are in the finished area have a lower investment risk than houses for sale in the primary market.
Secondary houses have a history of escalating increases in selling prices (capital gains) and rental yields that can be used as a reference for you in investing.