Investing in New Construction vs Buying a Resale HomeSeptember 19, 2015
When it comes time to consider a home, it’s easy to get caught up in current costs and forget about the long-term costs and savings associated with newly constructed homes and existing homes. Here’s what to consider when evaluating an investment in new construction against buying an existing home:
New Construction Will Save You Money Long-Term
One factor that many prospective homebuyers should be taking into consideration is the actual cost of living in that home. Yes, when you’re planning to live somewhere for the next ten, twenty, or thirty years, that can seem small compared to the costs of living, furnishing, etc. – long enough, anyway, to not really give all the ways in which you could be saving much thought. The end result, however, is that when it comes time for you to sell your house and move on to another area for one reason or another, you may find yourself getting much less than you feel you “put into” the home over the years. Buying a resale house yourself is a good way to make this mistake; instead, consider buying new to increase savings in both an immediate and long-term sense.
What You Get in a New Home and in a Resale Home
First, let’s consider that new homes have the most state-of-the-art technologies and building techniques behind them. This means that if it is something that could save you money, then it is something that could be incorporated into the home’s design, such as in the case of creating a “green,” or otherwise energy efficient, building. While older homes use traditional systems that consume large amounts of energy, primarily without giving you much in return, newer homes can come with energy certifications for walls, roofs, windows, doors, and even your appliance packages. This indicates the energy efficiency you can expect, which in turn leads to considerable savings over the years.
Give Yourself a Chance
The fact is, a resale house is old – and many of its best qualities may also be on the way out, if for no other reason than because of wear-and-tear. Over time, many different parts of a house need to be replaced, but in a new custom house, this won’t be the case for decades to come. With a resale home, you may very well find yourself replacing expensive parts of the building very soon after buying and moving into the home. Your heating and air conditioning can cost up to $10,000 to replace, while flooring can run you well over $15,000 to replace. Your roofing, exterior and interior paint, and both kitchen and bathroom remodeling can all end up racking up over $100,000 in costs.
It is difficult to see these costs when considering a resale home, but you must assume that they will be there within the first ten to twenty years of your life in that building. The fact is, it is “lived” in, and wear and tear is a natural part of living someplace. Give yourself a chance to enjoy the home as you bought it and save money doing so by going with a custom home!