If you are shopping for a place to call home, this may be one of your primary decisions. Is it better to buy brand-new? Or do home, like wine, get better with age? It turns out there’s no one-size-fits-all answer, but there are distinct pros and cons to each purchase.
New may be nice, but you pay for all that shiny newness. According to recent home price figures, the median cost of a new home is $335,400. Meanwhile, the median cost of an old or existing home is $240,500. However, the money you save buying an old home may not remain in your pockets that long, since old homes are often less energy-efficient and will cost more to heat and cool.
Old homes come with an inevitable need for repairs, replacements, and upgrades. On the other hand, new homes should be worry-free for several years. A brand-new hot water heater, HVAC system, and roof all but ensure no major out-of-pocket expenses for a least eight to ten years in most cases.
If you are seeking a life with fewer hassles, or don’t have money in reserve for emergency repairs and unexpected expenses, a new home may be the way to go. With a recently built home, you will have peace of mind that all systems are new, up-to-date, and you have no problems that could come down the line.
A home isn’t just a family gathering space, but a financial investment. With an older home, you can see on paper just how much money the property has appreciated over the years. While that doesn’t ensure future market appeal, at least you have something to go on.
As for a new home, with no history to look back on, this purchase can be considered more of a gamble. The price could shoot up, or it could plummet. In case things go south, there is this one silver lining. You will have less work to do in terms of making sure the home offers what the market demands in terms of energy-efficiency, design, and other amenities.
Looks matter a lot when it comes to choosing a home. Both old and new homes have their fans. In an older home, you will likely get some sense of historic tradition and thoughtful attention to detail. Think crown molding and real hardwood floors. On the other side, a brand new house often sports the latest and greatest like, open living spaces with wide accessible hallways with bathrooms and kitchens that feature energy-efficient amenities.