Buying new or existing property for your primary residence in 2024?

The demand for real estate purchases in Luxembourg has increased significantly since April. At the same time, banks are once again lending money, making it possible to envision oneself as a future homeowner in Luxembourg. Purchasing an existing property and buying one under construction each have their own advantages and disadvantages.

Here are some points to consider for each option:

Buying an existing property

Pros:

Immediate Availability: You can move in quickly after the purchase, which is ideal if you need housing without delay.

Negotiable Price: You have the opportunity to negotiate the price with the seller, depending on the market conditions and the urgency of the sale.

**Transparency: **You can visit the property and get a clear idea of what you're buying, reducing the risk of unpleasant surprises.

Cons:

Renovation needs: Some existing properties may require renovation or repair work, resulting in additional costs.

Limited options: You might be restricted by the features and layout of the existing property, which may not exactly match your needs.

Hidden costs: In addition to the purchase price, you may need to pay additional fees such as notary fees, property taxes, and moving costs.

Energy efficiency: Existing properties are often lacking in good insulation and may be more costly in terms of energy maintenance.

Buying a property under construction

Pros:

Customization options: You have the opportunity to customize certain aspects of the design and finishes of the property according to your preferences.

Novelty: You get a new property, often equipped with the latest technologies and construction standards, which can reduce long-term maintenance costs.

Guarantees: New constructions come with construction guarantees, providing you with some peace of mind in case of structural issues.

Energy efficiency: New properties are typically well-insulated and have optimal energy efficiency.

Cons:

Waiting period: You'll need to wait for the construction to be completed before you can move in, which can take several months or even more than a year.

Uncertainty: Plans and renderings may differ from reality, which can lead to disappointments.

Risk of delays: Construction projects sometimes face delays due to technical issues, weather conditions, or administrative delays, which can extend the initial waiting period.

Purchase price: The purchase price of a property under construction is typically higher than that of a similar existing property, requiring a greater financial effort from the buyer.

Whether you opt for buying an existing property or one under construction largely depends on your personal preferences, financial situation, and housing needs. Buying an existing property offers the opportunity to move in quickly and gain immediate clarity on what you're buying. However, renovations may be needed, and the available options may be limited. On the other hand, buying a property under construction offers the opportunity to customize the property to your liking but requires a longer waiting period and carries a higher risk of delays and uncertainties compared to the original plans. Therefore, it's important to carefully weigh the pros and cons of each option before making a decision.