Dilemma: New vs Old Construction

It is not easy to solve such dilemma.

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Are you aware of the fact that an apartment purchase is one of the most important life decisions? Because of that, it is important to take into consideration all aspects before making the final decision. When purchasing an apartment, people tend to consider its location, structure, floor position, view from the apartment, proximity to educational and health institutions, and whether there is parking and building maintenance.
When all these apartment characteristics fulfill expectations and personal financials do not represent an obstacle, there is still an eternal dilemma: whether to purchase a property within a newly built building, or old construction?
It is not easy to solve such dilemma, as both new and old construction have its advantages, therefore it is recommended to consult with real estate agencies.

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New Construction
New apartments have many advantages, and the most important advantage is exactly that – it is a new apartment in a new building, with all new installations and built-in materials, and more often investors give a guarantee to clients for the work and equipment.

Newly built apartments don’t need renovation, and thanks to building regulations and the materials used, today’s residential buildings are more energy efficient, which results in lower maintenance costs and monthly overhead costs.

Besides this, apartments are adapted to today’s lifestyle. Modern interior design implies open space, less hallways, while a kitchen, dining and living rooms are basically one whole, thus the space is used with more functionality.

New construction in urban areas today has solved the issue of parking, mostly in the form of an underground garage, meanwhile larger residential complexes contain a variety of amenities available for residents.

Safety which newly built buildings provide represents one of the top priorities for a majority of investors. New buildings have modern methods of monitoring the building through video intercoms, card access to the entrance and garage, video surveillance. Professional security is increasingly present in the building 24/7, which increases the safety and sense of security for you and your household.

Old Construction
The main advantage of old construction is the price, which is usually lower compared to the new construction. The period during which a building is built and the interior design of an apartment will make a property more affordable, while location and additional renovation work could make the price higher.

The condition of an apartment also influences the price. Many apartments in older buildings are being renovated in order to be as attractive on the market. If you are interested in such an apartment, it is recommended to inform in detail about works and adaptations. However, it is important not to overlook that additional adaptations of an old apartment require larger investments. In addition to money, time is also necessary to find quality contractors who will carry out the renovation within the stipulated time.

Another advantage is that the apartment is finished, available and ready for immediate occupancy, there are no worries about the completion of the construction of the building, and in most cases, there is valid ownership documentation.

Older apartments have a traditional room layout where each room is separated from the other by walls. Also, there may be some kind of storage room, a larger hallway, often the ceilings are higher, so the apartment may seem larger compared to an apartment of the same square footage in a new building. In addition, older buildings usually have basements, which is not often the case in newly built buildings.

Many neighborhoods built in the earlier period were constructed according to a plan, which means that the buildings are far enough from traffic roads, there are parking spaces for tenants, parks, and green areas.

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Concrete is predominantly used in new construction nowadays, thus it is believed that this “cold” material cannot replace the former brick buildings. However, new buildings are built according to the latest standards and have extremely high-quality thermal, hydro and sound insulation. New types of materials are used that did not exist twenty or more years ago, and often the buildings also have an energy passport, therefore in terms of quality they do not lag behind older buildings.

For the construction of modern, new residential buildings, better quality materials are used, and at the same time, new technology and a new way of construction of living space are used. Mainly, during the construction of new buildings, the needs of a modern lifestyle are also met.

Properties of older construction are built of high-quality durable and natural materials, and often have high vaults and thick walls. Previously, construction workers used materials such as steel, wood, brick and concrete, which was considered their main advantage. However, due to the date of construction, it is recommended to check what materials were used during the construction, as well as the condition of the installations and carpentry in the apartment.
There are harmful materials which could negatively affect health of individuals. Such an example is the use of asbestos as an insulating material in old buildings during the 70s. However, bearing in mind that Serbia is obliged to remove asbestos from use and from already built buildings, there is no reason to worry. It is definitely recommended not to choose an apartment in a building that has this problem and where, for whatever reason, the procedure for overcoming it has not been initiated.

Adaptation according to wishes and capabilities!

When buying real estate, people are trying to adjust their wants and desires according to their budget. However, what happens when a certain structure of the apartment needs a little correction? Is that possible?

One of the most important advantages of buying a building in a building under construction is the ability to influence the layout of the rooms and participate in modification works and adapt the apartment to your needs.
If the layout of the interior is not exactly what the buyer expected, or wishes to rearrange the space in their home, these changes are possible and easier to implement while the residential complex is under construction.
In the case of apartments with an older construction date, it is generally possible to move, demolish or raise partition walls in order for the residents to adapt the layout of the rooms to their wishes and requirements. However, it is recommended to consult a professional who will review the project and provide proof in the form of a static calculation so that the wishes can be brought into reality, and only then proceed with the adaptation of the apartment. Every adjustment costs money, so the renovation of an old apartment implies certain investments.

How to come up with the final decision?

Tax levies often affect the final decision, however real estate agencies have additional benefits.

There is a difference in tax liability between buying a brand new apartment and an apartment that has been sold before. Namely, value added tax (VAT) in the amount of 10% is paid when you buy an apartment in a new building from an investor, i.e. an apartment that has not yet been marketed. In the case of the purchase of an old or already sold apartment, no VAT is payable, but a tax on the transfer of absolute rights in the amount of 2.5%. According to the Law on Property Taxes, it is prescribed that the seller is liable for the tax on the transfer of absolute rights. However, in the majority of sales processes, this is a buyer’s responsibility. In the case of an agreement between the seller and the buyer that this tax should be paid by the buyer, it is necessary that this obligation of the buyer is defined in the sales contract
When the interested buyer does not have real estate registered under his name and buys his first apartment, he has the right to be exempted from paying tax on the transfer of absolute rights, i.e. VAT refund depending on the real estate he is buying, for the area of ​​up to 40 m² for the buyer of the first apartment and for members of his household who, as of July 1, 2006, did not own an apartment in the territory of the Republic of Serbia up to 15 m² per member.

However, the final decision when solving the housing issue is mostly influenced by personal wishes and possibilities. While some buyers love the charm of older apartments, other clients are more attracted to the smell of a new home, open space and modern design. Considering the importance of the decision to enter the process of buying an apartment, it would still be good to consult real estate experts.

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