The question of whether an apartment in a new neighborhood is better than an apartment in an old neighborhood or vice versa is a question that worries investors, young families, and anyone who actually wants to purchase a residential property. Each of the options has its advantages and disadvantages, and each option may be more relevant to someone else. So, how do we make a well-considered decision about where to buy an apartment? Let's turn to the good old method and list the things in a "pros/cons" list, ready?
New neighborhood – in favor
It's not hard to think of some good reasons why it's worth buying an apartment in a new neighborhood, after all, a new neighborhood means new construction with a design that suits the modern lifestyle, new infrastructure with more advanced technologies, sometimes also with green and environmental thinking, and of course everything just looks better. You know those beautiful architectural plans, full of parks and gleaming paths? That's probably what your neighborhood will look like too.
Another significant advantage is that the new neighborhood that is being populated all at once will probably be populated by populations from a similar socioeconomic and family situation to yours, which will create a good opportunity to establish a new community and enjoy good neighbors.
And of course, let's not forget that those who purchase apartments in the new neighborhood are expected to enjoy an increase in the value of the apartment after all the new residents move in and after the construction of the infrastructure is completed, so it is also a profitable investment.
New neighborhood – against
If we said that an apartment in a new neighborhood is expected to increase in value once the infrastructure is completed, we must remember that this means that in the first few years we will have to deal with a lack of infrastructure, and until enough schools, kindergartens, community centers, and even shopping centers are built, we will have to migrate to distant neighborhoods. Sometimes this situation may continue for a considerable number of years.
In various cases, purchasing an apartment in a new neighborhood also means living on a construction site and living alongside noise pollution, air pollution, and accessibility disruptions due to truck traffic and roadblocks. In addition, many new neighborhoods today are characterized by high-rise construction, so that many housing units are built in a small area, which can lead to high density and the formation of many traffic jams within the neighborhood during rush hours.
Old neighborhood – in favor
Let's start with the obvious - an apartment in an old neighborhood will usually cost less than an apartment built in a new neighborhood in the same city, so there is undoubtedly an economic advantage here. And of course, it should be noted that many old neighborhoods have been undergoing TAMA and construction evacuation processes in recent years, meaning that if we purchase an apartment in an old building that is scheduled to undergo such processes in the coming years, we can make a very profitable investment and enjoy a significant profit in a few years.
Also, not only do older neighborhoods offer us existing infrastructure in most cases, but when we choose to buy an apartment in an older neighborhood, it is much easier for us to understand the quality of the neighborhood, we can learn about the local population, the level and quality of education, and in short, we know exactly what we are going to receive, thus making a more informed purchase. And if we said that many new neighborhoods are characterized by high-rise construction, in older neighborhoods we usually do not see high-rise construction and the residents there enjoy a relatively low density.
Old neighborhood – against
Older neighborhoods that were built decades ago are often neighborhoods where the planning is not compatible with modern lifestyles. This is often reflected in the lack of parking spaces, as in the past it was not acceptable for a family to own more than one vehicle, if at all. In these neighborhoods, the infrastructure will be old, the environment will sometimes be less well-maintained, and public buildings will often be in a fairly neglected state.
If you are planning on a construction evacuation or TAMA 38, that's great, but if the apartment you bought is not expected to undergo such processes, and unless other significant changes occur in the real estate market, the value of your apartment will probably not change much in the coming years.
So what to choose?
Ultimately, the question is what your expectations are from the new apartment. Those who want to make a profitable investment are better off purchasing an apartment in a new neighborhood or an apartment in an older neighborhood that is nearing a master plan. Those looking for high-rise living will find what they are looking for in the towers being built in the new neighborhoods, and those who prefer to save will probably have better chances of finding a property that suits their needs in an older neighborhood. So what suits you best?
