Monday, 22 July 2019

How to Choose Between Buying a New Home or a Pre-Loved Home

When you are looking to purchase a home in the Newcastle area, you will need to choose between buying a brand-new home and purchasing an older home.

New homes and used homes both have their advantages and disadvantages. Before you purchase your home, you should compare the advantages and disadvantages of each choice carefully.

You may find that a used home could be more beneficial to your needs instead of a brand new house.

Advantages of a New Home

1) No Upfront Maintenance

No immediate maintenance is needed for a new home. Everything from the roofing to the drywall is in pristine condition. More importantly, the electrical wiring and plumbing is fully functional and does not need any repair work done.

2) More Power Efficiency

The latest building codes require builders to construct homes with better insulation in the ceilings, floors, and walls. This promotes a higher standard of energy efficiency and reduced utility costs.

3) The Newest Appliances

No need to replace or tolerate old appliances. Your new home could be equipped with the latest oven, stove, dishwasher, refrigerator, and more.

4) More Square Footage

There is a higher demand for more living space than there was in the past. The average new suburban home is constructed with around 2,500 square feet of living space. Compare this to the mediocre 1,000 square footage of used homes.  

Disadvantages of a New Home

1) More Expensive

Be prepared to spend more money to purchase a new home. Just like new cars, a new home is more expensive than a used home.

2) Repetitive Design

In new housing developments, new homes in the same neighbourhood are often constructed to have the same floor plan and architectural design. There are few differences in their appearance.

3) Weak Property Vegetation

After a home has just been built, the vegetation of the land is quite weak. There is virtually no trees and very little grass growing. It is not attractive.

4) No Resale Value

If you are someone looking to resell your home in the future and make a profit, you cannot do that as easily with a new home unless you are willing to hold onto it for a long period of time and hope that the market value increases.

Advantages of a Used Home

1) More Affordable

Used homes are often a bargain. Depending on how many defects it has, you could snatch up a used home for a very affordable price.

2) More Acreage

Older homes were built at a time when the land was cheaper. Because of this, these homes often come with a lot of acreages attached to them. If you look in more remote locations, you can find a lot more land included with used homes.

3) Fully Grown Trees and Bushes

If you enjoy tall trees and beautiful blossoming bushes, then used homes will likely have them in their back and front yard. There is often an abundance of vegetation on these properties.

It might be a lot of work to mow and cut the landscape, but this vegetation can add more beauty to any property.  

4) Unique Construction Design

The great thing about older homes is they were designed more creatively. They were not part of some developer’s fixed floor plan that gets reused in dozens of other houses.

Each individual home had its own style because many of them were hand built by their original owners back in the day. This gives them a special kind of style that cannot be recreated with any new home.

Disadvantages of a Used Home

1) Needs Maintenance and Repairs

Used homes usually need lots of repairs and maintenance work done. Even if you get the house for a cheap purchase price, there is still a lot to fix up in it. The most significant expense will be for electrical rewiring and new plumbing.

2) Smaller Size

In the old days, homes were not built to be gigantic. A family of 5 people would cram into a tiny 1,000-square foot home. A lot of used homes are smaller than the newer homes built today.  

3) Needs Appliance and System Upgrades

If you are lucky enough to find a used home with a dishwasher, HVAC unit, and other useful appliances, then they are probably old and barely functional. You will likely have to replace them all with newer appliances.

In the end, it all depends on your finances more than anything else. Some people simply cannot afford to purchase a new home, so they are forced to buy a used home.

There is nothing wrong with that as long as you do your homework.

That means having a Newcastle building inspection done to find out what might be wrong with the building so you have a fair idea of what expenses may be incurred in getting your home up to your living standards.