Which is Better to Buy? New vs Used Homes
When purchasing property, one of your first thoughts that may come to mind is "Which is better for me? A new house, or a used house?" Both types of houses can have their respective pros and cons, making it important to carefully think about both options available for you.
Advantages of newly developed houses
1: When it comes to housing loans, you may receive a better offer when buying a brand new home. Your interest rates could be lower and you may receive a larger loan.
2: A newly built home may already come with all of the appliances, styling preferences, and brand new structures that you seek in a home, meaning you will have to do less initial repairs as compared with a used home. You wont find yourself having to dip into your repair and reserve funds to fix things like old piping, structural wear, and other important problems for many years. In a used home, you may have to remove a wall, or slightly renovate to get the ideal spacing layout you are aiming for.
3: A newer house is built with newer materials and construction. Houses built in more recent times face higher standards of things like energy efficiency, structural safety, and so on. Newer appliances and fixtures such as shower heads, water heaters, and air conditioning units with the latest technology can save both your money and the environment when compared with older, high energy consuming models.
4: In the case that you are building the house yourself, you have the chance to check on the progress throughout the building stages, making sure everything is to your liking. If you find any problems, you can fix it before the house is completed. If you are looking to build your dream home, a new house is the way to go.
5: Your home will have a higher resale value if you decide to sell it. Each year your house simply exists, the value may fluctuate, potentially losing value with age. You are guaranteed to get more money from a house built in 2018 than a 20 year old house built in 1998.
Disadvantages of newly developed houses
1: This one may be obvious, but the initial cost is much higher for a newly built home than a used home. While new appliances and fixtures will ultimately save you money in the long run, they can be a costly upfront expense. New refrigerators, kitchen appliances, and bathroom fixtures can all drastically increase the price of a home of anywhere from $50,000 to $100,000 or more depending on the size of the house.
2: Your new property will have a high initial value, subjecting you to high property taxes. The process is not over once the property is built or bought, as you will have to continually pay tax as long as you are the owner of the property.
3: Your new home may not be settled yet. As homes settle into the soil with age, you may be subject to cracks in your foundation as your home ages and adjusts to the newly-built on land. Even with a warranty from a builder, it may take a long time to get these repairs completed.
Advantages of used houses
1: The price of a second hand home is far lower than a brand new home. The used home may have undergone renovations that make it completely convenient and modern, but still holds an older foundation. As you are paying for something that has likely been well lived-in, you will not have to pay a high price tag for a home that is new to you.
2: You can see the home in person before buying it. You won't have to wait months until completion to see the final project, meaning you can make decisions on whether to purchase or not quicker. In addition, you can move in quicker compared with waiting for a newly built home.
3: Used houses have already been established in a neighborhood and location. If you are looking to live in a specific neighborhood, whether it is for schooling purposes, job purposes, or simply just preference, a used home is likely available where you want to be. You will likely be living next to other residents, whereas a newly built home in a new neighborhood may put you next to empty houses for months or even years.
Disadvantage of used houses
1: You may be facing higher initial maintenance costs with used homes. Some fixtures or appliances may already be nearing their replacement dates, such as roofing or refrigerators. It is important to plan ahead for these replacement expenses.
2: Smaller storage areas and garages are common in older homes. Without the large cars and seemingly endless wardrobes we have today, the older generation built their homes to suit their needs. Therefore, it is important to plan carefully if a used home can accommodate a large car or a large amount of storage items you would like to keep at home.
3: Damage and structural problems can lead to disaster if not properly found and replaced. Things such as piping and electrical wiring can be very difficult to fix in older homes. It is important to enquire about the age of these assets that are carefully integrated into the structure of your home. Moreover, if there is damage within the foundation of the home, it may be costly to fix, or even impossible to repair.
In conclusion, if you have certain preferences in housing layout, appliances, and modern features, you should consider purchasing a newer home. The upfront cost may be much larger than a second hand home, but you will be the proud owner of your very own "dream home." You won't have to worry about maintenance for years! If you would like to live in a specific neighborhood, or would like to keep your buying budget on the lower end, you should consider purchasing a used home. Even if the home is just 10 years old, you will still find it convenient and comfortable to live in. Vintage homes may also offer charm and appeal as a "classic home." Whichever, you choose, you are sure to love your new home!
If you have any questions or would like to arrange a viewing, please feel free to contact us!