Old property or new build? A decision-making tool for property buyers

Author: Bernhard Bircher-Suits, FundCom AG

Old versus new builds – which is right for you? In Switzerland, properties built more than 40 years ago are considered old. Many such buildings have a great deal of history and charm. In fact, in 2023, around one in five residential buildings was over 100 years old, amounting to some around 334,000 properties. These are often bursting with character, but can also conceal certain challenges. It can be difficult for non-experts to spot defects in the basic fabric of the building, which can lead to unexpected costs after purchase.

Michael Hügli is Managing Director of the Swiss trades network Buildigo. He has the following advice: “Before buying a property, you should have the condition of all building components and installations checked. This includes assessing their age, condition and remaining lifespan.” He adds: “In a building more than 100 years old, getting an expert structural analysis of the timber components, the material moisture content of the foundation walls and the weather resistance of the building envelope is essential.”

How to negotiate effectively: keep an eye on hidden costs

The more you know about the condition of a property, the better positioned you’ll be to negotiate prices. In older buildings in particular, the need for renovations can have a significant impact on the sale price. Outdated heating systems or poor building shell insulation can reduce the value.

That’s why it’s important to get an expert to put together a list of future renovation costs. Establishing such costs beforehand gives you a credible and technically transparent basis for negotiating the sale price of a property. 

Old buildings: charming homes with history

Unlike modern buildings, old buildings are often architectural gems with a storied past. But before you opt for an older property, you should consider the following points:

Benefits of an old building

• Character and atmosphere: Ceilings with ornate mouldings, wooden parquet flooring and high ceilings give old buildings a special charm.

• Established location: Old buildings are often located in established districts with good infrastructure.

• Sound building fabric: Older houses were often built from robust materials such as bricks and stone.

• Possible savings: Old buildings are often cheaper than new ones, especially if they still need to be modernised.

Drawbacks of an old building

• Need for renovation: Often, you may need to invest in the roof, outer walls, drainage pipes or heating. Before new legal requirements come into force, electrical and fire protection systems must be brought up to the applicable standards.

• Higher energy costs: According to a study by the Swiss Federal Office of Energy (SFOE), buildings constructed before 1980 use on average a quarter more energy than newer buildings. Many old buildings have inadequate insulation in the cellars, roofs and windows. This leads to higher heating costs.

• Harmful substances: Buildings constructed before 1990 may contain asbestos, which poses a health risk and entails expensive remedial work. Asbestos may be found in floors or behind bathroom tiles. Even older buildings can also contain banned substances known as PCBs, including in joint seals and anti-corrosion coatings.

• Geological or contaminated site assessment: If you suspect that the ground beneath or next to the property is contaminated, it is best to commission a report that examines the pollutants and the building fabric.

• Heritage-listed buildings: Clarify at an early stage whether requirements or restrictions could make renovations more difficult and expensive.

• Earthquake safety check: Many older buildings in Switzerland do not meet modern earthquake standards. Have the safety checked by a structural engineer, especially if you’re planning modifications or repairs.

• Fire protection: Adapting older properties to modern fire protection standards may be necessary to ensure safety, but it costs a lot.

• Check old construction plans: It’s really important to take a look at the inspection documents relating to the site from the time the property was built. The old plans may contain important information about the structure or construction method.

• Plan some leeway into your budget: When renovating old properties, undetected issues can lead to expensive surprises. You should have a financial cushion in case this happens.

Step one: a visual inspection

Start by commissioning a visual inspection or survey of your dream property. This also applies to new buildings. Experts such as architects and building surveyors can spot cracks, leaking windows, damp spots, mould or damage to roofs and walls. An initial survey can tell you and a specialist a lot about the condition of the building. It usually costs between CHF 500 and CHF 2,000. 

Typical problems with old buildings

• Check the roof and external walls: A broken roof can be expensive, so you need to make sure it’s in good condition. There should not be any cracks in the external walls, either. 

• Cracks: If you do find cracks in the walls, you should definitely get them checked. In particular, diagonal cracks may indicate that the floor is no longer properly even or that there are structural problems somewhere.

• Damp: If the walls are damp, this can result in discoloured areas or a musty smell in some rooms. This is often because the pipes are leaking.

• Mould: Mould is not only unsightly and a health hazard, but also an indication of serious damp problems.

• Outdated electrics: In many old buildings, the electrical cables are outdated and no longer meet current standards. It’s best to have the electrical installations checked by a local specialist and clarify whether they need to be upgraded.

• Thermal imaging analysis: A thermal imaging camera shows heat loss and poorly insulated areas in the building that are invisible to the naked eye.

• Hazardous substance testing: Harmful substances such as asbestos, PCBs and wood preservatives may be present, especially in old buildings from the 1950s to the 1970s. Removing these is expensive.

• Structural analysis: If there are any major cracks or changes in the building, it’s time to consult a structural engineer. Building plans and structural documents can be used to check whether the building complied or complies with the regulations then and now.

• Check energy efficiency: Find out if the property has a cantonal building energy certificate (GEAK). Also check whether the windows, doors and roof are adequately insulated. If you have a GEAK energy certificate, you know the exact energy status of the property.

• Renovation documentation: Check whether and when major renovations were carried out.

• Planning renovations: Think about how much you can and want to spend on renovations and upgrades.

New builds: modern and efficient

More than a third of all Swiss residential buildings were constructed after 1984, meaning that they are classed as “new buildings”. Due to high construction costs and the considerable demand for modern living standards, they tend to be more expensive than older buildings. New buildings are usually ready to move into without having to be renovated beforehand. But there are also a few things that you should definitely bear in mind when considering a new build.

Benefits of a new build

• Energy efficiency: New buildings meet the applicable energy efficiency standards and generate lower energy costs thanks to modern heating and hot water systems.

• Affordable maintenance: Since everything is new, repairs or maintenance work are rarely necessary in the first few years, which saves you money.

• Custom design: If you’re buying a completely new home and having it designed according to your specifications, you often have a say in how the rooms are divided up and what fittings are installed. New buildings with spacious layouts are often easier to reconfigure than old properties.

• Accessibility: Modern houses are often barrier-free, making them well suited for older people and those with limited mobility.

Drawbacks of a new build

• Higher costs: New buildings are usually more expensive than old ones.

• Sterile atmosphere: New buildings have less charm and may be located in newly constructed developments rather than areas that have grown over time.

• Long waiting times: Turnkey new builds or properties bought off-plan can take months or even years to be ready for occupancy.

• Problems at handover: Construction defects can also occur in new buildings. That’s why you should have them checked thoroughly by a specialist during the process.

Tips for buying a new-build home

• Get your purchase contract checked: If in doubt, contact trusted experts such as construction lawyers, building consultants or local solicitors about matters relating to contracts and notarisation. For land or real estate purchases, solicitors check the contract before it is certified.

• Guarantees and warranties: Warranties for labour contracts are governed by Swiss law. Contractors (e.g. building contractors) are liable for defects that render the work inadequate, unless these have been expressly excluded in the contract. Take a look at how long and to what extent this warranty is valid. 

• Document any defects: At the time of handover, you should inspect the property for structural defects with the help of a specialist and record these in writing.

• Calculating maintenance costs: Maintenance costs for new builds are lower, but you should still determine the utility costs before buying. This includes the estimated annual heating costs, insurance and fees.

In summary: Old buildings or new builds – which are better?

Your decision whether to opt for an old property or a new build will come down to your personal preferences, your budget and your plans for the future. Old buildings have a certain charm and history, but you do need to be prepared to invest more in maintenance. New builds offer modern comfort and energy efficiency, but are more expensive to purchase. Take your time when choosing a property: if you check everything thoroughly and plan realistically, you’re on track for a successful purchase, whatever type of property you choose.