New vs. Old: What is the Best Investment?

There are many reasons to purchase a new home. Like anything in life, it has pros and cons you should consider. Below are some of the most important things to consider for buying an old home vs. a new one. Whatever your choice, remember to never visit a community without your Realtor. The Sales person works for the builder and represents their best interests and it is wise to have somone on your side. And always make an informed decision on what house type is best for your budget.

Old Homes

Pros: Old homes are generally found on larger lots because in the past land was cheaper, in today's time the value of land is much higher therefore smaller lot sizes. Many craftsman style houses were built with great attention to detail, adding more character than a track home. This might be appealing because it offers a unique look and rather than a cookie cutter appearance of a track home. Also, the neighborhoods are more established which decreases the chance of re-zoning or building non-residential properties.

Drawbacks to Buying an Older Home

• More maintenance.
  If it were a "perfect" house, everything would fall apart at the same time. But things tend to go wrong periodically, and there's always something to fix. Chimneys and stone foundations require tuckpointing. Floors may slope.

   

• Expensive to replace wiring and plumbing.
  If a home was built before sewer systems, the cesspool might overflow into a sewer. Tree roots break up sewer pipes. Galvanized pipes are rust-prone. Sensitive electronics require grounded wiring, and Romex can't be mixed with knob and tube.

   

• Smaller closets, storage space, garages.
  Before today's concept of "bigger is better," people had less clothing, fewer personal items to store and one car.

   

• Might require updates.
  Apart from HVAC systems -- I don't know how those in hot climates get by without central air -- trendy updates involve pricey kitchen and bath remodels.

   

• Often more expensive.
  Classic and vintage homes generally cost more because of the location, meaning closer to conveniences such as schools, mass transit, shopping and urban amenities.

   

• Smaller size on average.
  With the exception of estates, many older homes are smaller in size, even though family sizes were larger when they were built.

New Homes
Pros: New homes follow strict builder regulations and codes that focus on homeowner safety. There are more amenities such as master suites, designated laundry rooms, half baths, and air conditioning. Modern appliances are included; usually builders incorporate appliances in the home design where as older homes may not have built-in dishwashers or a space made for a refrigerator. The home size and square footage tends to be larger than an old home due to building up for small lots. Clearly the maintenance on a new home is less and also offers more efficiency with electricity, gas, and water.

Drawbacks to Buying a Newer Home

Tract homes have similar floor plans.
Some say tract homes are identical to each other; they have no individuality. Others prefer conforming areas. So what if your neighbor's house look just like yours, at least you know where the light switches are located.

• Immature vegetation.
  It can take years for trees to grow. In the Natomas suburb of Sacramento, for example, many home owners can't afford to landscape the back yard. The front of these Mediterranean homes look magnificent, but look out an upstairs' window and everybody's lawn is dirt.

• House settling.
  New houses settle. It happens everywhere, regardless of the type of soil. Settling causes cracks in foundations, walls and door frames.

   

• Longer commuting distances to downtown.
  If you want to be where the action is in a metropolitan downtown area or avoid the drive to work in rush-hour city traffic, the distance from downtown might make a difference to you.

No matter what you decide, the most important thing to ensure is that inspectios are done by a licensed inspector to ensure all items are in working order.