What are the advantages and drawbacks?

Like any other purchase, a whole host of variables factor into the decision-making process when buying a home . . .  and each shopper’s personal preferences and priorities shift the decision tree.

For instance, things you might take into consideration include:  How skilled are you and do you have time for do-it-yourself projects?

How close do you want to be to work – or to family?  Do you regard your house as more of a long-term home or an investment?  What is your stage of life?  Where are you flexible and what is non-negotiable?

Then combined with all these dynamics, there is the question of whether a new or older home will suit your needs best.

In an attempt to help you cover all the bases, I’ve itemized the major advantages and drawbacks to the options facing you so that you can make the most informed and confident home-buying choice.

BRAND NEW HOME

Advantages

MATCHES YOUR TASTES

Commissioning a custom-built home from a builder gets you the closest to a finished home that is exactly what you want.  For tech conscious buyers, a custom home affords the ability to incorporate automated elements such as lighting, heating, and entertainments systems.

MAINTENANCE-FREE

New builds come with a 7-year warranty on the structure, guaranteeing the integrity of the home.  With assurance that your furnace, roof, windows and major systems are all sound, you will be free of any unexpected cost or hassle for several years.

SAFETY

A brand new home must meet the most up-to-date standards for fire prevention and all other dictates of the current building code.

MODERN APPLIANCES

Most builders outfit new homes with new, warrantied modern appliances, saving you the cost and effort of sourcing them on your own.

Drawbacks

SMALL LOTS

Over the years, the escalating cost of property has led to skimpier lot sizes, meaning most new homes have smaller yards and closer neighbours.

COOKIE CUTTER LOOK AND FLOOR PLANS

Housing developments can be known for repeated styles that lack originality or distinction.  Unless the home is custom built to specifications, a house that is already constructed almost always involves compromising, whether in layout or esthetics.

UNFINISHED BASEMENT

Brand new homes are usually sold with unfinished basements.  Depending on your plans, this can be a negative as it will mean added costs when you remodel, (however some buyers who prefer to customize may see its advantages).

LANDSCAPING TO BE DONE

When purchasing a new home, you’ll want to allot a budget for landscaping and have patience as your planting will look sparse at first and take time to mature.  The cost to install a driveway and fencing will be other major expenses to plan for.

WINDOW AND STORAGE TREATMENTS NEEDED

These may seem incidental but the price of things such as window coverings – already in place in an older home – can add up.

OLDER HOME

Advantages

PRICE

New homes are typically 10% – 15% more expensive than comparable older homes.

AMPLE LOTS

If you are a gardener or sticky about back-yard privacy, your chances of getting a generous sized lot are much better with an older property.

CHARACTER

In contrast to the cookie cutter look found in new developments, older homes tend to have their own individual traditional character and interesting curb appeal.

READY FOR LIVING

Although your older home may need improvements or remodelling in time, the right home will be far less labour intensive since everything is already done.

MATURE LANDSCAPING

Many homebuyers appreciate the look and shadiness of established trees and landscaping, sometimes including ready-to-enjoy patios, decks or pools.

ESTABLISHED NEIGHBOURHOOD

A neighbourhood that is a known quantity is an attraction for many buyers, the location of schools and parks nearby being of special importance for families with small children.

Drawbacks

OUT-OF-DATE SAFETY STANDARDS

Since building code specifications are not retroactive, an older home will not necessarily meet current-day safety standards.  Related to this are potential environmental problems such as asbestos insulation in walls, boiler pipes wrapped with asbestos; building materials containing formaldehyde, or even buried oil tanks.

REMODELLING REQUIRED

Making changes to your older home to suit your tastes usually entails $10 to $15K in cosmetic upgrades, especially to dated kitchens and bathrooms.

OLD FASHIONED

Along with the charm of an older home comes less-than-modern fixed characteristics like lower ceilings, smaller closets, tighter kitchens, single car garages or no central air.

In summary . . .

First and foremost, the property you end up buying should be a home you can see yourself happily and comfortably living in.  But in my time in the construction industry, I’ve seen too many buyers end up wishing they were more deliberate in their approach to shopping for a home.  The pros and cons highlighted here are simply intended to arm you with information so that you’re basing your choice on more than emotions.

If there’s anything that you would like to add or comment on in this post, please reach out to me.

Thankfully, many potential pitfalls of home buying can be avoided.  Whether purchasing a new or an older home, hiring an experienced home inspector will give you the peace of mind that comes with knowing exactly what to expect from the home you’re taking possession of.  Lucky for you, I can recommend a good one!