Buying your first home can be a bit overwhelming and you may not be sure of which one is better for your family – Older (Resale) Homes or New (Construction) Homes
Here’s the comparison to help you decide as which should you buy.
Older Home
Charm, Character, History, Memories. However, an old home can have its pros and cons also - lets understand:
Pros
Big & large yard – the land was cheaper so the lot sizes were big
Individual character and interesting architectural features
More charm and character
Mature and Established Neighborhood
Closer to shopping, entertainment and restaurants
Opportunity to renovate to increase value
Cons
there's always something to fix so may require more Maintenance
Expensive to Replace Wiring and Plumbing
Outdated - Smaller Closets, Storage Space, and Garages
May Require more maintenance and Upgrades
Based on location and school district – can be More Expensive.
More Insurance cost
New Home
New Construction, Energy Efficient, Solar Panels, Smart Appliances, USB outlets, Cost Efficient, Tax Breaks but still there are pros and cons:
Pros
Brand new, clean, no major issues
Move-in ready (no wait or work to be done)
Cool new technology
Green features could reduce utility costs and/or provide tax incentives
Trendy design
Low Manitenance
Energy efficient
Latest construction and building codes
Modern convenience
Builder Warranty
Ability to customize
Can finance additions into mortgage
Possibly easier to get financing with home builder
Less competition, more choices on floor plans
You can even pick among different sizes and floor plans to get just the right amount of space, as opposed to having to conform to what’s available in the existing market.
Cons
New construction may be in less desired area
Upcoming and outskirts areas of the city
New upcoming neighborhoods will take time to get established
Smaller lot size
Usually, new Homes Are 15- 20% More Expensive so you pay a premium for a new home
Apparently 20% more on average
So while costs might be lower for maintenance and renovation
Pay GST on new construction
These simple questions can help you decide;-
Q1: Your preferred location?
Q2. Are you looking for a mature or upcoming neighborhood?
Q3. How much commute time do you want?
Q4. Are you comfortable with getting upgrades and maintenance done?
Q5. Do you want a latest and energy efficient house?
Summary
The decision to purchase a new construction or a resale home will depend upon individual / family needs. One needs to consider the pros and cons and review them all against your requirements.
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