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Tata Capital > Blog > Loan for Home > New House vs Old House – Which One Should You Buy?

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New House vs Old House – Which One Should You Buy?

New House vs Old House – Which One Should You Buy?

Are you having trouble choosing between a new property and a resale property? The new home vs old home dilemma is understandable, as both have their pros and cons.

But buying a home is possibly the most significant purchase decision you will ever make. You may even have to take on a home loan, which is a long-term commitment. Therefore, you must weigh your options carefully and not rush into any purchase without considering the following factors.


New properties or projects are usually priced higher than resale homes, especially if they are fully furnished and ready to move in. To justify these prices, developers claim to have used high-quality, modern, and expensive construction materials and furnishing. You must verify these claims if you are leaning towards buying a newly constructed house.

If you are having difficulty arranging for finances to buy a new home, you could take on a housing loan. Many lenders offer an online home loan EMI calculator to help you explore different repayment options.

While old houses usually sell for less, you may end paying a significant sum on renovations and repair. Therefore, while making your decision, you must take the condition of the property into account, and anticipate the cost of refurbishing.

If the house is in a decent condition and does not require a lot of restoration, there is no reason not to buy it. A customised loan for renovation and repair is also an option you could explore. You could use an online home loan calculator to find an EMI plan that works for you.

Additional Read: How to Calculate the Resale Value of Your House

Energy efficiency

Nowadays, while developing a residential project, builders have to meet stringent energy efficiency standards. And not just appliances, wall coverings, roofs, doors, and windows have to be installed with energy efficiency in mind. Therefore, even though a new house may cost more, it could save you money on utility bills.

If you or a member of your family has allergies, asthma, or other respiratory difficulties, a new home could even help you cut down on medical bills. Many new projects include air filtration systems to improve the indoor air quality, thereby preventing these ailments from surfacing.

On the other hand, houses built years ago were not required to meet any of these standards. And even if regulations were in place, they were very lax. As such, energy efficiency was not a consideration back in the day. At best, it was an afterthought. Therefore, if you are thinking about buying a resale property, you must factor in the increased utility bills or the cost of installing energy-efficient solutions.

The bottom line

The answer to the new house vs old house debate will depend mostly on your personal preferences. It may be that the particular locality you are looking to move into, has no new residential projects. Or maybe you are a DIY enthusiast looking to buy an old property as a new project.

Additional Read: Want to Own a Home? Find Out How

Looking for a reputed lender to buy a house?

If yes, your search ends at Tata Capital! With our flexible home loan eligibility criteria, easy application, and attractive home loan interest rates, we can help you buy your dream abode.

To learn more about our home loan offerings or to use our home loan EMI calculator, visit our website today!

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