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Buying your first house - New House vs Older House

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  • Outdated - Smaller Closets, Storage Space, and Garages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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