When Comparing Purchase Prices, It's Worth Comparing Utility Costs Too
Potential apartment buyers prefer new developments, but sometimes they choose an older apartment building due to a lower purchase price. However, if utility costs are included in the price comparison, a home in a new development will definitely prove to be the better choice in the long run.
The purchase price of a new apartment is higher than an old one, but living in a new apartment is ultimately more beneficial. Let's compare, for example, two two-room apartments: one in the Kodulahe new development, with an area of 46 m² and a price per square meter of 2391 euros; the other in the same area but in an old building, with an area of 37.1 m² and a price per square meter of 1752 euros.
Clearly, the acquisition costs for an apartment in an older building are lower, but the difference in loan payments is not as significant. Assuming a loan is taken for 30 years with a 20% down payment and an interest rate of 2.5%, the new apartment's loan payment in this case would be 345 euros, while the old apartment would be 205 euros per month. If the square meters are equalized, then in an old building, with the same price per square meter, the loan payment for 46 m² would be 255 euros per month.
But let's also compare utility costs. The new development building is a class B energy building thanks to triple-glazed windows, underfloor heating, and ventilation with heat recovery. The average utility cost (not including water and electricity consumption for the apartment) in the first six months of this year was 1.0 euro per square meter.
The older apartment building was built in 1961, that is 57 years ago, it is unrenovated, and the building's energy class is G. In the first half of this year, utility costs there averaged 2.15 euros per month, which is more than twice as much as in the new development.
If the apartments were the same size, both 46 m², then the Kodulahe apartment's utility cost would average 46 euros and in the old apartment 98.9 euros per month. The annual cost would be 552 and 1186.8 euros respectively. Together with the loan payment, this would make one month's cost 391 euros for the new apartment and 353.9 euros in the old building.
There are several other reasons to prefer a new building. In the Kodulahe district, the builder provides a two-year warranty on the buildings, and there is also a separate warranty for all equipment, such as ventilation systems, solar panels on the building's roof, but also windows.
In an old building, you must certainly account for greater repair needs. Before making a purchase decision, you should clarify whether the building has had its electrical wiring, water and heating pipes, windows, roof replaced, whether the building is insulated or when it is planned to be done, and how much of a loan needs to be taken. If a renovation loan is taken for the apartment building, it can increase monthly utility costs by several tens of euros.
If you start renovating an old apartment while already living in it, you must prepare for prolonged discomfort, the biggest of which is dust spreading everywhere. Furniture removed from the room limits freedom of movement, it needs to be covered, and the home becomes terribly chaotic. If pipes need to be replaced in the toilet or bathroom, those rooms cannot be used for a while.
Another advantage of new developments is the developing surroundings. The Kodulahe district is planned so that stairwells open to an inner courtyard with green areas and a playground, and several paths for pedestrians and cyclists run through the district, etc.
In residential areas with old buildings, the shortage of parking spaces is becoming an increasingly large problem, so a guaranteed parking space near your home is increasingly valuable and certainly worth the investment. In the Kodulahe district, in addition to a parking space, it is possible to purchase a storage unit, keep bicycles in a locked bike rack, and use electric car charging points.
Article source: Arco Vara
