Should you pay to have a new home built or should you buy an existing structure? From our point of view, the answer is that it’s better to build – it means more business for us. However, what’s it like from the view of someone who is trying to make the most of their money?
We consulted both our expertise and some financial advisers for help in figuring this out. Between the two of us, we hope to provide you with a clearer answer on which is the best route for your money.
The first consideration is the upfront cost.
Buying an existing home can save you money, that’s for sure. If you buy a pre-built structure, it means that the cost of having it built is no longer a factor. However, you might still have to consider things like renovations and repairs.
For a new home, the costs can range from 25% to 50%, depending on the choice of materials and other factors. However, you do get more space, and the design is exactly what you want it to be. You also have the advantage of cutting away anything you don’t like, rather than being stuck with something.
In the end, renovations and repairs on an existing home can be a great bargain. Especially if it has all that you want and need already.
Repairs and maintenance are a long running concern. For this, whether you buy old or new, you want a reliable partner to handle most of the work.
Older homes need more maintenance. This is especially painful if the home is on its last legs, or is one of the examples of poor work from that period. This upkeep is far from cheap, on average.
A new home needs less upkeep, and this is the primary benefit. You might be able to get a good deal on maintenance by finding insurance, too. We offer a new construction warranty as well, covering you for a decade.
Finally, there is the matter of appreciation. This is mostly in case you plan to sell in the future. However, it can sometimes have an impact on what you’re paying for now.
For this, we had to consult our friends who do financial analysis. You can see more of them at the link.
An existing home gives you context, the experts say. You can see previous sale prices and get a better idea of how much you can get if you choose to put it on the market. If the prices are rising steadily, you’re probably going to make a profit unless something bad happens.
If you build a new home, you’re left without that context. They can be a gamble because there isn’t a record of prices and sales. There’s no real way to guess if you’re making or losing money by selling in the future. The same goes for amenities – what adds value now might not do so in the future.
Well, that’s a lot of information. We hope that this helps you decide whether to build a new home or to buy an existing one.