Real estate from a developer or from the secondary market – difficult choice? Many people who want to buy their first apartment face the difficult choice of an apartment from the developer or maybe from the secondary market. What is worth paying attention to when choosing your own apartment? What are the advantages and disadvantages of a primary market apartment versus a secondary market apartment?
Secondary market and the primary market – differences in definition
The “primary market” is commonly understood as new, never used apartments, houses or commercial premises. New properties are usually built by a developer. People who decide to buy real estate from the primary market often have a wide range of dates for putting new investments into service. However, the waiting time often depends on the stage at which the buyer decides to buy a flat or a house. If time does not matter, you can buy apartments when construction is at the “hole in the ground” stage. Most often, flats from the primary market are in a developer standard, i.e. for independent arrangement.
The secondary market is the property that already has its owner when it goes on sale. Each subsequent home or flat buyer buys it from the secondary market. Even when the flat was bought from the developer a few weeks earlier. Secondary market often also referred to as “second hand” market. Properties on the secondary market are mostly finished, and often also furnished. If the buyer wants an apartment from the secondary market to be arranged “in its own way”, it must take into account renovation, which may generate additional costs.
Therefore, the price of an apartment from the secondary market should often include considerable renovation costs. In the case of real estate from the secondary market, you should also take into account the different degree of wear of the building, which has an impact on the cost of maintaining the property.
Advantages of an apartment from the developer
Often, the greatest advantage of real estate on the primary market is its novelty. The first owner has the full and greatest influence on the arrangement of the property. For most buyers, the greatest advantage is the novelty of this property. Thanks to this, the new owner can be sure that the apartment does not have any faults caused by the previous owners. Buying an apartment from a developer also facilitates introducing changes, e.g. by changing the location of partition walls.
In the event of any irregularities in the property, the developer is obliged to remove them.
A person who buys an apartment from the primary market may also often make changes to the developer’s design (e.g. changing rooms or changing partition walls). The property on the primary market can be freely arranged without the need to get rid of old equipment.
Developer apartments are built with the use of modern energy-saving technologies at an attractive price. As a result, flats from the primary market meet higher and higher standards.
Disadvantages of an apartment from the developer
Despite so many advantages, the primary market also has its drawbacks. For many buyers, the biggest disadvantage is too much distance from the center and the lack of utility infrastructure. Developers most often build real estate on the outskirts of the city. Unfortunately, a person who wants to buy an apartment from a developer has a very limited choice of locations where development real estate is available.
For many people who buy a flat from a developer, the big “problem” is also the waiting time for a flat – it is often even several months.
Flats on the primary market are much more expensive than flats on the secondary market. However, the new building means no renovation fund, low rent and low maintenance costs.
Advantages of an apartment from the secondary market
The main advantage of real estate in the secondary market is the richness of their location. Naturally, the location near the center also means a higher real estate price and a well-developed infrastructure with good communication.
Apartments available on the secondary market are often ready to move in immediately. However, equipment is often included in the price of an apartment. Some of the flats available on the secondary market are flats bought for investment, i.e. renovated and not requiring any financial outlays. However, it makes them much more expensive.
Disadvantages of secondary market housing
In the case of secondary market real estate, unexpected expenses are always to be expected. A second-hand apartment always requires a minor or major renovation, eg in the case of a change of arrangement. Often, the maintenance of real estate on the secondary market is higher than on the primary market. The technical condition of blocks of flats or tenement houses varies. Therefore, the buyer should be aware of the increasing costs for the renovation fund.
Unfortunately, there is no clear answer where it is better to buy a flat on the primary or secondary market. Both types of real estate have their advantages and disadvantages. However, the final choice will depend on the personal preferences and financial capabilities of the buyer.