🏠 Benefits of Buying a Newly Built House vs. an Old House in Sri Lanka
For many Sri Lankans – whether living locally or working abroad – buying a house back home is a dream investment. Whether it’s for your family, retirement, or rental income, the choice between a newly built house and an old house in Sri Lanka can shape your financial future. In this article, we break down the key benefits of each, so you can make an informed decision.
🆕 Why Choose a Newly Built House?
✅ Modern Layout & Design:
New homes often come with spacious layouts, open-plan kitchens, and smart wiring—perfect for today’s lifestyle.
✅ Low Maintenance Costs:
A newly built house means new plumbing, wiring, roofing, and fittings, reducing the chances of immediate repair costs.
✅ Energy Efficiency:
Most new homes are designed with energy-saving features like LED lighting, solar panels, and better insulation.
✅ Warranty & Builder Support:
Many new properties come with a builder’s warranty, giving you peace of mind if any structural issues arise.
✅ Better Resale Value:
New homes usually attract higher resale value in Sri Lanka’s growing property market.
🏚️ Why Some Buyers Still Prefer Old Houses
✅ Bigger Land, Central Location:
Older houses are often built on larger plots and are located in prime areas of towns or cities.
✅Lower Price Negotiation:
You may be able to negotiate better prices for older homes, especially if they need renovation.
✅Strong Construction:
Many old homes in Sri Lanka were built with solid materials like old teak, brick, and cement blocks, which still stand strong today.
✅Character & Style:
Some buyers appreciate the traditional Sri Lankan architecture and charm of older homes.
📋 Required Documents When Buying a House in Sri Lanka
Whether you’re buying a newly built or an old house, there are specific documents and checks required. Here’s a helpful comparison:
| 📑 Document/Requirement | 🆕 Newly Built House | 🏚️ Old House |
|---|---|---|
| Deed of Transfer (Title Deed) | Must be checked for new ownership | Must verify ownership chain for past 30+ years |
| Certificate of Conformity (COC) | Mandatory for newly completed houses | Check if previous owner obtained COC |
| Approved Building Plan | Needed for construction and resale | Must verify original plans match existing house |
| Assessment & Tax Receipts | Ensure up-to-date before purchase | Check no arrears in municipal payments |
| Water & Electricity Approvals | New connections or transfer process | Confirm utility bills are cleared |
| Encumbrance Certificate | To confirm property is free from legal issues | Especially important for older properties |
| Land Survey Plan | Verify boundaries and extent | Ensure plan is not outdated |
🌍 Tips for Overseas Sri Lankans Investing from Abroad
Assign a Power of Attorney (POA):
Appoint a trusted lawyer or family member to represent you legally during transactions.Do a Virtual Tour or Hire a Property Inspector:
Never rely on photos alone. Use video calls or third-party inspection services.Open an NRFC/ RFC Account:
Use foreign currency accounts to send money legally to Sri Lanka for property purchases.Consult a Real Estate Lawyer:
Especially important to avoid scams and ensure title clarity when buying remotely.
🧠 Final Thoughts
Both newly built and old houses in Sri Lanka have unique advantages. If you value convenience, energy efficiency, and modern amenities, a new house is your best bet. But if you’re looking for charm, space, and possibly a better location at a negotiable price, an old house may be worth the investment.
Before you decide, consider your long-term goals, the maintenance effort you’re willing to invest, and your budget flexibility.
