Original article by Jana Kneshke in ‘Moje Penize’ – Summary into English by Pavel Parizek
This is one of the questions that belongs on a FAQ list, so let’s have a look on some guidelines about this topic – new flat vs. old flat.
Basically it is not possible to say what is best. It is always a question of numbers.
Heritage or new construction?
If you buy a new flat it is typically quite expensive. If you buy an old one then the purchase price looks reasonable but it always needs to have some reconstruction. But how much will reconstruction cost? The article says that for an old flat you should count with approximately 10,000 CZK/m2 (for a complete reconstruction), so when you consider what to buy, you have to add the price for a reconstruction to the purchase price of an old flat and this way you can get some basic figures for the real price.
Pros and cons of the different kinds of apartments:
New flat
+ very small investments to the repairs (larger items under a guarantee)
+ possible to customize the final look of a new flat
+ bigger rooms
+ higher comfort of living
+ using new technologies of construction and materials
– higher purchase price
– there could be less shops and services around the apartment location
– sometimes have a not very good traffic connection
– possibility of building an additional new project around the apartment (worse view from the building, noise,…)
Old brick flat
+ good purchase price
+ shops and services around the place
+ good sound isolation
+ big rooms
+ easy to rent
– reconstruction costs
– time consuming repairs
– because of the age, you never know what could appear as a next reconstruction need
– higher ceiling increase the heating costs
– lower floors have problems with enough sunlight due to other buildings nearby
– the government department for an old building can order/cancel/change the reconstruction
Old panel flat
+ low purchase price
+ shops and services around the place
+ traffic is good
+ some common areas in the building (laundry room,…)
– reconstruction costs
– all flats typically have the same size
– small rooms
– bad bathroom isolation
– poor insulating and noise isolation
Our note: So there is not a definitive answer to this question of which type of property is the best investment. If you are looking for a property to hold for 10 years without worries a new construction would be the best option. If you are looking for a premier location and don’t mind dealing with a few reconstruction and maintenance issues then a heritage property could be the best for you.
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Updated/Aktualizováno: June 7, 2016,
