If you’re buying a home, consider the advantages and disadvantages of purchasing both newer homes and older homes. If you’re open to either option, consider presenting your real estate agent with your total budget-meaning the price range you’ll commit to spending including repairs. This can help your agent locate both new and old homes that suit your preferences and budgetary requirements.
With a newer home, the newness comes at a cost-your money will go a lot further in terms of space when you purchase an older, more outdated home. Regarding this point, you’ll need to decide whether you can afford a newer space large enough for the needs of your family.
Renovation and Personalization Cost
In both new and old homes, you’ll incur a certain amount of cost in renovation and personalization. That includes things like fencing (if you have a dog and the property has no fence), painting the rooms according to taste. The closer a home is to suiting your needs, the less it will cost to finance changes.
In an older home, you’ll likely incur these costs plus more major renovation costs, which you may or may not wish to conduct immediately. Things like plumbing, leaky roofs and large driveway cracks are gateway problems that can lead to more substantial damage and must be fixed immediately.
The costs of renovation and personalization are definitely things you need to consider when looking at homes-and when looking at your pre-qualified home loan amount. To make things easier on yourself, it may make the most sense to borrow the cost of the house plus the cost of repairs and personalization to avoid immediate financial strain or incurring multiple loans.
Homes are like cars in that new and old ones eventually require maintenance. Old homes often require more immediate fixes whereas newer homes may provide some breathing room for you before things start to break. Either way, it’s best to consider a budget for ongoing maintenance and emergency repairs when looking at monthly mortgage payments.
Cracks, drafts and larger spaces will automatically raise the cost of heating and cooling your house. Most older homes have higher electricity bills than newer ones; some newer homes are even built with the environment and energy conservation in mind. Don’t forget to factor in the cost of utilities when looking at homes and a monthly mortgage payment.
The character, history or personality of a home or a specific style of home is a primary reason for some homebuyers’ preferences for older homes. While some people might be bothered by creaky staircases, others feel that it provides a feeling of comfort and a less sterile environment. Newer homes and new home styles can also have character, however; some are specifically designed with certain architectural facades in mind.
While there are pros and cons to newer and older homes, you should never judge a house totally by its age or exterior. A ten-year-old home that was neglected by previous owners could house a score of issues in comparison to a well-maintained Victorian. Never purchase a home or sign any contract or agreement without a full inspection from your own trusted inspector-even if the home is brand new.