Education and news for smart DIY landlords!
Whether you want to own a property for your family or a real estate investment, the first question you ask yourself is: “Should I buy a newly built home or an old one?” Either way, both decisions can yield profit and shelter your loved ones.
But it all boils down to your personal preference. You can choose to own an old home for less or buy a new one that reflects your needs and wants. To make a solid decision, let’s discuss more advantages and disadvantages of buying a newly built or existing house.
Newly constructed homes are mostly built using the latest energy-star rated and government-regulated materials. They’re also installed with energy and water-saving appliances that would reduce your monthly bills.
Insurance and warranty are included in a newly-built property. It will save you a lot of money when it comes to repairing defects and rebuilding due to a natural disaster or fire.
During the planning phase, you can tell the contractor to follow your style such as the exterior design, floor plan, light fitting, color scheme, and construction materials to use.
You cannot upsize in the future especially on a fixed lot space and floor plan. This can be problematic if you have a large family or plan to have more children.
Bad weather and shortage of construction materials can cause delays for those waiting to have their homes completed. This adds to your monthly expenses if you’re renting for the meantime.
Limited land space will reduce your parking area. Some communities may also prevent you from parking on the curbside. Owning multiple vehicles or having a garage can be out of the question.
Depending on the negotiations and current local real estate market situation, you and the seller can agree on a buying price that costs less than building a new home.
You don’t have to worry about going on long drives to amenities because most existing homes are already close to groceries, stores, places of worship, schools, and parks.
There are plenty of existing properties on listing sites. You can find one that would complement your current and future family size.
Most existing properties are built with outdated plumbing, insulation, and HVAC systems. These housing necessities may consume more resources than your ideal monthly budget.
Another disadvantage of buying an existing home is that you might end up owning or living in a property with a bad neighborhood. This may reduce the property’s future value. You must do an area survey before deciding to buy.
Existing homes usually have wears, tears, and damages incurred over time. Sometimes they can’t even be detected by a home inspector. And doing repairs may cost you a lot in the future. If you decide not to make any repairs, they will reduce the home’s future market price.
Some cons of buying an existing property or building a new home can be taken care of. For example, if you think you’ll have problems expanding your house size in the future, you must buy a new medium-sized house in a larger lot today.
Or if you don’t want to pay expensive monthly bills after buying an old home, you must make an investment of installing the latest energy star-rated appliances and building materials. They may be expensive but they can also guarantee future bill reductions.
Discover more good reads for real estate here!