Should You Buy A New Or Old Home?
Deciding on whether to buy a new or old home is one of the first questions you should answer before starting a home search. If you’re having trouble making this decision, you’ve come to the right place. We’ll explain the pros and cons to buying a brand new home vs. an older home so you’ll have a better idea which choice is best for you.
Advantages Of Buying A New Home
- First owners.
- Move-in ready.
- No repairs or renovations required.
- Typically, includes newer amenities and appliances.
- Higher quality items such as energy efficient windows can lead to lower monthly bills.
Newer homes do have their advantages, one being that they’ve NEVER been lived in. Secondly, newer homes usually have the latest appliances and technologies such as digital thermostats, locks, and even garage door openers you can control from your phone! Additionally, newer homes do not come with the need for renovation or repairs. This means you can spend a little more up front on purchasing the home because you know there won’t be any need money for repairs after you’ve purchased.
Disadvantages To Buying A New Home
- Property values might fluctuate more.
- Increased noise levels if new construction is still be completed in the area.
- More expensive than buying older/used homes.
- Location might not be developed yet.
Let’s face it, location will always play a major role when it comes to property value. You can find brand new homes in great locations or you can find one in a less than desirable area. Sometimes you find an affordable price and other times the home is gone before it even hits the market.
When new developments pop up, you typically see them on the outskirts of town where there’s the ability to expand. Therefore, it might be a bit before your property actually increases in value. If other houses are still being constructed you could be facing a noisy area for a while.
Advantages To Buying An Older Home
- Typically less expensive than buying brand new.
- You can use extra money from lower home price for renovations and personalized touches.
- Old houses can have custom designs you don’t find in modern homes.
- Housing location could be in an already established area.
When purchasing an older home there are some benefits to consider. Typically, older homes will be more affordable than brand new houses that have all the newest amenities and technology. The major advantage to this is that you can use the money you would have spent on a brand new home towards renovations. We all have specific wants when purchasing a home and this could be the perfect solution if the current house you’re wanting to purchase does not include those items.
Disadvantages To Buying An Older Home
- Could have major problems you won’t know until you have the house inspected.
- Might have to settle on the house just for a better location.
- The neighborhood could be on the decline.
Unfortunately, it can be tough to find a house within popular areas, and when you do, you might have to pay more for prime real estate. It’s always a good idea to have your home inspected before you purchase it. This should be done by a professional home inspector to guarantee you’re not purchasing a home that’s going to require thousands of dollars in repairs.
It’s wise to consider all possibilities before rushing into purchasing a house. Depending on your situation, there could be many benefits or drawbacks to purchasing a new vs older home. It all comes down to what’s best for you and what you want from a home. Is it new technology, prime location, or freedom to make it your own with renovations? Consider these in addition to other questions you may have, and see if the benefits outweigh the negatives. After you have these questions answered, you will be well on your way in deciding if you should buy a new home or old home. If you’ve made your decision, take a look at Launch CU’s great home loan options HERE.