There are a myriad of factors to consider when buying a home, and one of the biggest dilemmas is choosing between new and old property. The cost of both properties can be significantly different, but each type of home has its pros and cons; the benefits and the disadvantages of buying old and new houses almost balance out. Knowing your budget will help make it easier for you to pick new vs. older homes.
In the long run, a new home will be less expensive while an older home will be more expensive but located in a more established neighborhood.
What’s the final sales price?
New homes are limited, and this makes them more expensive. In the 1990s, a time when the population was lower than what it is today, the number of houses built every year was about 1.5 million. Today, there are less than a million units built every year, and this makes the houses more expensive. The promises that these houses are designed with the latest technology, built for comfort and convenience makes buyers want them more. This makes the houses more expensive. Again, immediately you get into a new home, you might need to do some upgrades to meet your taste, the final bill therefore skyrockets. Old homes are cheap, but you need to do a ton of upgrades and renovations. In the end, the price for new versus old buildings might balance.
Is the house ready for you to move in right away?
New homebuyers are attracted to the newness factor in a home. These homes might not need any repairs in the first ten years, and if they do, the repairs will be covered by the house warranty. For a new home, the owner will only need to pay for utilities and other regular costs to keep the house running. New homes are great in that they can be customized to your liking. You can spend the first few months decorating instead of repairing. The architectural charm of older homes makes them attractive to home buyers. In an older home, there are classic features that most new homes do not have such as hardwood flooring, woodwork and moldings, glass door knobs and stained glass windows. Even with these great features, you need to consider the cost of renovations and repairs before buying an old home. You may not move into some older homes immediately since they need a lot of repairs. (Related: 9 Apps to Simplify Your Move)
Does the home have a large lot?
Older homes are located in established neighborhoods near big towns and cities. These older homes have larger lots and are closer to stores, town centers, schools and restaurants, and present easy commuting opportunities. Again, the majority of older homes are either single-family houses or duplexes. New homes are constructed in suburban areas, a long distance from town centers and with smaller lots. These houses are built close together with most of them being apartments with tons of neighbors. If you are looking for a house with an established tree-lined neighborhood, only an older home can give you that. (Related: Best Places in Southern California to Raise a Family)
How soon do you need a new address?
When you move into a new home, you leave your old address behind. Most new homes take time before they appear on Google map and before they get an address. During that time, you might have to continue using your old address or choose a friend’s address. It is challenging to have items shipped to your new location. Before buying a new home, ask how long it will take before you get an address and make arrangements to have your emails sent somewhere else.
What are the costs of monthly maintenance?
When comparing new vs. older homes based on energy efficiency, new homes win. However, some older homes have already been retrofitted with modern appliances and features for energy efficiency. The smart technologies, better insulation, and modern building materials make new homes more energy efficient. By older homes being less expensive, they have a lower tax base. This means that not only are newer homes more expensive but they also demand a higher tax. However, insurance agencies might charge more per month for older homes since the materials are aged and may need replacement soon.