One of the dilemmas facing home buyers is whether to buy a new home or to buy an existing home and renovate that home. There are a few things that will influence your decision and should be considered before buying:-
1. LAYOUT – One of the first things to think about is the design and the layout. How important is it to you and your family to have a home design and layout just the way you want or are you adaptable to use an existing layout?
Newer homes usually have bigger rooms, more built-in wardrobes / closets, and more bathrooms. If you are building a new home you can also influence the layout and the finishes within the home as part of the negotiations with the builder / developer.
Whereas an existing home you will inherit what the previous owner built or remodeled over time. Very rarely will an existing home be built and finished exactly to your liking.
2. YOUR BUILDING SKILLS – With an existing home you maybe required to renovate the house to incorporate features you like. This will be an added cost and take time and patience to accomplish what you want. You will also need to manage and clearly establish the cost of remodeling prior to starting.
You will either need to employ someone to do this or carry it out yourself. If you have the skills to manage this process it is a great way to build future wealth. I have achieved this a number of times in my life and added significantly to my overall wealth each time.
3. HOME LOCATION VS WORK LOCATION - if you work close to the centre of any major city and want to live reasonably close to your work often the only choice will be buy an older existing home as all the land is already built on, whereas for people working outside the centre of a city it will often be easier to find new land and build a new home. You should also consider the medium term needs of the whole family in regards schools, public transport and other local facilities.
4. FINANCE / BUDGET/ COST – Often buying an existing home will be cheaper than buying a new land and home package for the same features. So if your budget is limited you may find it easier to buy an existing home and remodel it progressively as new funds become available and you know the cost of remodeling. If you do choose the existing home option and have to renovate it might be good to get a remodel estimate form a remodeling contractor to help with your decision.
5. FINISHES AND ENERGY EFFICIENCY- Buying a new home will usually mean new insulation, newer windows, finishes, electrical systems and a more efficient heating and cooling systems. Usually when buying an existing home they use more power, have older windows and are less energy efficient. Again you can find out the approximate cost of remodeling by asking a local builder for advice.
Buying a home is an expensive and an exciting process. It is often one of the biggest purchases you will make in your lifetime. So take your time and consider the options. One suggestion is to create a list of everything you want in a home and then check the pros and cons of either choice.
By: George Birdsall