Expert: Actually There Are Dozens of Reasons Why You Should Strive for a Brand New Apartment When Buying a Home
During home shopping, there is a common perception that an apartment in a new development is not worth considering due to its high price, but in reality, there are dozens of reasons why the extra effort to buy a brand new home is worthwhile both emotionally and financially, claims real estate expert Sandra Alliksaar.
"Let's start with the money. Buying an apartment is a very large investment for a family for many years, and everyone should think about how it would pay off better. As a rule, new modern buildings hold their value better and also appreciate more. So in a few years, your family's property will have greater value," begins Invego sales director by describing the long-term perspective, and immediately adds that the first part of the price difference is already offset at the time of purchase, since banks view new buildings as lower-risk investments, which gives the buyer better interest rates and larger loan amounts, and apartment insurance also comes slightly cheaper.
The home loan payment for a new home may indeed be slightly higher, but this is offset by savings on other housing costs. "In a new house, monthly costs are clearly predictable and stable, the houses themselves are energy efficient, all systems are modern, and documentation is in order," explains Alliksaar, who notes that with older houses, one can be surprised at any moment by some minor repair cost or even a larger investment need, which will start inflating the repair fund line each month.
"One can safely say that in a new house you are buying along with your home at least significantly greater peace of mind for yourself and your wallet for the next 10-15 years," Alliksaar is convinced, and reminds that in addition, brand new buildings have a legally mandated two-year warranty, which some developers have extended to three years and Invego even to five years. "If you assess the future risks of a specific old house with a critical eye at the time of purchase, then often already in a slightly longer perspective you can predict an increase in monthly housing costs, which tips the final number in favor of a new home."
Sandra Alliksaar, who is raising a small child herself, considers the difference in quality of living environment that new residential areas offer today to be even more valuable. "In new houses, it is standard to have a safe lift that meets modern standards, usually better soundproofing systems and mechanical ventilation that ensures air quality," describes the Invego sales director, adding that large windows and architectural solutions bring more light and space into the rooms, and many homes today also have spacious balconies or terraces. "In addition, the area around the house is usually designed according to contemporary urban space requirements and people's expectations. Separate sidewalks, safe car-free areas, playgrounds and sports fields, and proper landscaping," adds Alliksaar.
As the final very important component, according to Alliksaar, a strong sense of community emerges more easily in new neighborhoods, because a large part of the neighbors have a similar lifestyle and interests. This also helps plan the development of the home area better, and children the same age always have friends to spend time with," says Alliksaar from her experience of how a cohesive and active community forms, while in old houses, the population over decades has often become very diverse and heterogeneous, which makes planning a large part of community activities much more complicated. "A good and active community in turn again raises both the value of the area and your own property," Alliksaar returns to the investment perspective and summarizes the topic like this: "It is understandable that often buying a brand new home doesn't seem affordable and sometimes it isn't. But this should be the first major goal when planning a home purchase. From my own experience, I recommend not giving up right away, but first making the maximum effort precisely for a new home."
Invego is a new generation real estate developer operating in three countries, specializing in creating large residential areas and business quarters with comprehensive concepts that create future urban spaces. Invego group companies in Estonia, Latvia, and Portugal currently have nearly 30 different development projects in progress. Invego has developed 150,000 m2 including 1,300 homes and more than 50,000 m2 of commercial space, and has another 450,000m2 of residential and commercial real estate in the works.
Among companies developing real estate in Tallinn and its surroundings, Invego ranks second by the number of new homes sold in the last five years with 900 homes. The largest completed developments so far are Vana-Peetri, Tiskreoja, and Tabasalu Kodu, and the currently ongoing Luccaranna, Uus-Järveküla, and Keila Pargikodude residential quarters.
