Should you buy an older house to save money?
It is a big debate between people whether to buy a new house or whether to get an old house and try and save some money.
In the United States after the financial crisis of 2008, the amount of new construction has gone down to an incredible degree. Because of this new homes are now costing up to 50% more than what you could get an old home for. This reason seems to make an older a steal and would definitely seem to be the better buy.
If you get an older home your benefits can be:
- A nice well maintained lawn, with a possibly a good percentage of old mature trees around you.
- You are able to pick and choose established neighborhoods where it’s easy to see where things are and any changes that might happen in the near or extended future. This allows you to have assurance as to the stability of the area in which you might live; you can choose a neighborhood with far more certainty.
- Rustic beauty can be a grand benefit from buying an older home. Depending on the age of the house you can have many features that you will not find in the newer homes being built.
Buying older homes seems like a no-brainer, but like anything else, where there is positive there’s also negatives:
- An older home will always have maintenance issues. These issues can be small akin to a small fix up or they can be major maintenance issues where you need to replace old substandard cabling, plumbing or even need to do some kind of major structural repair. Depending on the severity of the maintenance involved, you could do many of these repairs yourself if you are a handyman, but you should always be prepared to fork out money for maintenance issues with an older home.
- Buying an older home requires a lot more consideration. You should never purchase a home without some kind of inspection which should definitely include structural inspection. You do not want any surprises after you have purchased the home; you should buy only when you know exactly what you’ll need to change, upgrade, and completely replace.
- While an older home might seem like a good idea financially, we can never rule out the allure of a new home. Its benefits include:
- New everything. You won’t need to worry about appliances, wiring, plumbing, structure, or any of the other things that you need to consider if you buy an older home.
- While rustic beauty might appeal to some, there’s also something to be in said about the new designs and new home layouts. Some of these homes can be magnificent with a more efficient use of space.
- There can also be something quite nice about purchasing a home in a new up and coming area. While there is indeed a certain amount of anxiety as to how the neighborhood will progress over time, a new area usually attracts younger more enterprising individuals.
When you consider whether to buy a brand-new house or an older one, the best thing to do is to try and not see things as black and white. What I mean by this is that you should not see buying an older house as the act of purchasing an old rustic marvel from the 1800s.
The best bet is to buy an older home but not one that is really old. For example, there are unfortunately many houses out there that have come into the market because of the financial crisis. This means that there are relatively new homes out there that can be purchased for an older home price. When you are looking for a new home, this would be the best thing to do.
In a newer older home, will have a good structural building. The wiring and plumbing should be up to modern standard and the appliances, layout, and closets should have the modern appeal and functionality that most people are looking for. The neighborhood should be relatively established and you should be able to have a good idea as to its possible future development and whether it now suits your kind of lifestyle.
Remember though that you should consider this to be an older home in that you should always hire a good home inspector before you buy. This is perhaps the most critical aspect of buying a new older home and one that is sometimes overlooked. Make sure you hire a qualified home inspector that you know will give you a good inspection on all aspects of the home. In other words you want to make sure that this person can tell you about the home’s wiring, plumbing, structure, mold, and overall maintenance. They should be able to give you good list of what the home needs and using this list you should make sure you add the costs of fixing every single thing on that list to the cost of the home. If you don’t have a way to either pay someone to or fix whatever it is yourself, you need to move on until you find something that you can afford completely.