Old House Vs New House

Wednesday, December 9th, 2009 at 12:43 pm

One of the biggest investments anyone could make is the decision to own your home versus renting. The next big decision for a prospective buyer is whether to purchase an old house or to go with new construction (a new home). There are definite advantages and disadvantages to both but in order to take a good decision you have to get down to a very basic level and just figure out your personal preference as well as the reality of your circumstances (a new home may simply cost too much upfront , for instance). Whether you live in a major city or in a small rural town, these are points you should consider when deciding whether to buy an old or new home:

1. Cost – Not just the cost of the home itself (meaning the initial purchase price), but also the cost of maintenance. Will the older home cost you more in electricity, gas, etc. due to an older and less efficient design or other factors that start to show up with age (cracks in the foundation, roof problems, heating and cooling issues, etc.).

2. Location, Location, Location – Is it easier to build a new home in order to be closer to where you work or the kids go to school, etc? Being close to your work is often over-looked in its significance but long commutes can definitely impact the amount of enjoyment you will get out of your new home. If you purchase an existing home chances are better that the community around it is already built out (shopping, restaurants, schools, churches, etc.). Of course, this is not always the case, but location in general is extremely important.

3. Planned Communities – Planned communities have become more and more popular especially in large suburban areas of the country. Many new homes are now being built in these developments with some great amenities like lots of swimming pools, great parks, and community centers. The disadvantage of a planned community generally revolve around the home owner’s association covenants. You have to get permission to from them to do things that outside of a planned community you would not need to seek permission for (adding a swing set, basketball hoop, putting in new landscaping, etc.). You should definitely be very aware of any dues and covenants that you are going to need to sign before deciding to purchase a home in a planned community.

There are many other points to consider as well when you are looking to purchase a home (whether it is new construction or an existing house). In general, it’s best to look at several choices and to try to not settle for something that is just good enough. Know what you need and want. If you want a fireplace, a 2-car garage, a home with a built-out home office, etc. It’s smart to either get what you want or spec. out in advance how much it will cost to get the home to the point where it suits you wants and needs. In the end, owning a home is a great experience and a decision that needs to be well thought out.

Delicious Digg This Reddit Stumble This