By Bolaji Ounbemi

Several new estates springing up all over the place with promises of providing off-takers with facilities, services and infrastructure that will boost the status of the estate. While these offers are interesting, first homebuyers or builders and investors often face the dilemma of deciding between buying a parcel of land in these estates or in an older suburb or neighbourhood. Established neighbourhoods have their own attractions as well. Deciding between the two neighbourhoods require weighing the pros and cons of each carefully and systematically.

Established neighbourhoods are areas of the city or state that have matured or are maturing in terms of development. They are close to places of employment and corporations. They are close to shopping precincts, may have good roads, good demography and other infrastructure are available for the residents. These areas are not far from the city centres and have regular public transport. They might also be crowded but there is a lot of room to provide services to the teeming population. The price of property in these areas rises at a steady pace and sometimes, astronomically when the economy is booming.

New estates are often new areas that are at the fringe of established areas. They are usually some distance away from where most businesses and companies are located. These estates may be government initiatives but more often than not, they are products of private initiatives. They are often sold off plan and may be serviced estates. In order to sell land in these estates, the promoters often come up with all kinds of offers. Land in these estates can be bought cash down or through payment in instalments. There have been some estates with promotional offers of buy-one or buy-two to get one free. They also have additional services that they promise to provide to all the estate occupants.

The decision to buy land in a new estate or old suburb will be better guided by the personal circumstances of each person. One of the key determinants of the decision is affordability. Land in established neighbourhoods is often more expensive because they have several advantages that are not yet available in new estates. If you do not have the funds to buy in an established estate, then your options are limited to new areas even though they may be far from your place of work.

One of the reasons why established areas are more expensive and often grow in value is because it is easier for buyers and sellers to estimate their value. The worth of these areas is well known and it is easier to project their potential value. These matured areas have infrastructure in place and you can easily identify high, medium and low-income density areas. This is not the case with new estates.

New estates are better planned and modern in their features and outlo=ok. However, you need to do your due diligence on the builders and promoters. There are builders that have already established themselves in the real estate industry for quality and timely project delivery. This is the major risk in buying into a new estate. If the new estate project fails or is badly executed, the value of your land and building will be significantly impacted. In addition, if there is an oversupply in the market or many estates projects in the area, the value of the property may not rise as expected.

If the estate project is successfully completed, there are several benefits. Most new estates are better designed with open space and green areas. The good ones have common services that cover security, water and electricity. The roads are often tarred or built with interlocking stones. They secure a certificate of occupancy and have streamlined processes for transferring title to their subscribers. These services remove a lot of headaches for their subscribers. If you buy land in an established area, you need to handle these things personally or delegate someone to do them. Either way, you still have to carry the burden of ensuring that you get the necessary permits and bring the right services to your property. All these are some of the issues that the estate managers will handle for you.

Many new estates control the type of structures that you can build. This policy has its own drawbacks. There are some who complain about the fact that having the same design makes the estate look boring. In a way, this is true since you are not allowed to build to your taste. Whereas in established neighbourhoods, you may need to buy and pull down an old structure but you do enjoy the flexibility of building what you like subject to government approval.

A comparison of the above pros and cons should help you make the right decision on where best to buy land.

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