If you are thinking about investing in real estate and buying a home, you may be trying to decide whether to build a new house/purchase a newer home or an purchase an older home. Both home types come with pros and cons. I want to shed light on some key factors to help you make the right decision.
Newer Homes/New Construction
Pros
- All the major components (HVAC, foundation, roof, water heater) are brand new and you should not have to be concerned with replacing these anytime soon.
- You get to select your building materials and design the home to look exactly how you want it.
- All appliances and plumbing are new. You get to break in that stove and you are the only one who has used your bathroom (at least we hope).
- Brand new home smell. Nothing beats the smell of fresh paint and new carpet.
- 1 year builders warranty. If anything gets damaged during the first year, the builder will replace it at no cost to you.
Cons
- You typically will pay more for new construction than older homes.
- Newer homes will have baby trees and landscaping so you will have to wait a few years to get any real shade.
- Building delays-Sometimes these are just not preventable. The wrong tile could be ordered or the manufacturer decided to drop the tile you chose. This happens all the time with new construction so be prepared and have back up plans in case you need to add a few more months on your apartment lease.
- Home is built-in less time with less quality materials than older homes.
Older Homes
Pros
- You may get quality building materials (like real wood flooring and exotic granite) for a fraction of the cost you would pay for them in a new home.
- Mature trees and landscaping.
- Some older homes were built with architectural design features that are historic or timeless.
- Your home comes with a story. Someone has already put a lot of love into it and you get to add another chapter to the book.
- Pay less per sq ft than a newer home.
Cons
- You may have to do some major repairs to make the home livable.
- May not be move in ready.
- You are the new kid on the block so it will take some time to acclimate to the existing neighborhood culture.
- Insurance may be higher because the home is older.
I hope this list helps to make your decision on finding a home a little less daunting. My best advise to you is that you should research and evaluate what is most important to you. Buy a home that you love and that will also love you back for years to come.