Hello : We are looking for a house to buy.

The new construction houses are costing same as old ones (2 to 5 years old) in the same area.

The lot sizes may be bigger in some old houses (25 years old) but then they are old and same prize so we are thinking of a new house.

I know additional cost for appliances etc. but is ther any thing else to consider ?

I have read pros and cons on websites for new VS old and also some really poor reviewes about the builder but then not many go on web site for positive reviews.

Thanks

Donot know if this will help but I am giving you a insider tip.

For the builder :
25 % lot price
50% house building price
25 % his profit, over heads, marketing etc...

Since Canada had the housing boom, newer construction is not that great quality (relatively). So if you want to buy a house of 5 year old vs. new one, it will be of same quality of construction only.

Any other questions, please feel free to ask.

Murali The Krishna

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I am a Gents and not a Ladies.

Sorry TK, can you pl explain more, I get the split for builder but how that does affect my decision ?

Also you are saying quality is poor of new and upto 5 year old house so I should go for house older than 5 years ?

Aashu,
What I meant was your land (lot size) is worth 25% of the total cost of the house. So you calculate. Bigger lots mean more value to you.

See, if you buy a house which is 20 years old, the construction would have been good and you can expect it to last another 60 years with proper maintenance.

The houses being built these days may last 40-50 years and so do you maths on that.

Another myth is that bigger builders have good quality of trades people under them. The answer is No. They are subcontracted and the same person may do the work under a big name and as well as a smaller name. But the bigger name will have a superior site manager and also good QA/QC so that he will identify faulty workmanship.

If I were you (money point of view), I will buy only a new house as you have 1 year defect liability period from the builder. Older houses of good construction may offer frequent repairs (roof leaking, paint peeling off, floor scratches) etc.. but you have no choice if location is your preference.

MTK

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I am a Gents and not a Ladies.

go for 2-3 yr old house, here are reason:

1. New house builder asks for 50K in advance and give you house after 2-3 years...closing is not guaranteed

2. Your home will not look like exactly what they show you in pictures

3. you have to buy appliances, make side ways, get curtains blinds etc lots additional costs

4. For very old house like 15 to 20 yrs. You might have to change roof / furnace / AC washroom tubs, toilets etc keep counting ........because every thing is being used for last 15 - 2 0 years

so go for 2-3 yr old house, stay for 7-10 yrs and sell it. this is what I prefer and do..

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એક જ ટીપામાં હો જાણે સાત સમંદર,
એવા ઝંઝાવાત હજુ હૈયાની અંદર

New construction:

1. Opportunity to customize within a certain extent
2. Make changes during construction to a certain extent
3. The emotional bonding (more of an intangible pro than anything else)
4. Lots of additional expenses on top of the purchase price - appliances, driveway, sod, window coverings, premium flooring, light fixtures, deck, landscaping, paint - to name a potential few.
5. Many builders are bunch of frauds and third rate cheapskates. They'll lie, cheat, lie and then again cheat. Not to mention cutting corners.
6. You might discover problems which could be resolved through the builder assuming the builder is not a cheat.
7. Everything will be to code (caveat - the codes provide for basic minimum)


Buying an existing home:

1. Hidden and unknown problems that you will be responsible pretty much 100% unless there are warranty coverages.
2. What you see is what you get on the paint and wall coverings. May have to spend money to refurbish to your liking.
3. Older homes (more than 20 years) may have better quality construction, so you may benefit from that.
4. No opportunity to change layout unless you bring down walls and such.
5. No additional expense if the home has almost everything to your liking. In most cases, the previous owner(s) may have put in a good effort to upgrade and such.
6. Rebutting the above, if the homeowner was a lively color lover, you may be in for a blinding color surprise which you may have to "fix".
7. If the owner has lived for several years and is downsizing, you may have the opportunity to buy their furniture and other stuff - a sort of "furnished house".
8. Certain items may be at the end of life of their code. For example, in 2018, certain municipalities will recommend having the ceiling blow down insulation to R72, an upgrade from R36 or so.

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Dimple2001

My 0.02 cent :
New homes give you maximum profit you if decide to sell where as Older houses appreciate in value slower in comparison .
In new sub division you have to live with dust and dirt for extended time till neighborhood settles .
New homes are definitely more energy efficient due to new windows, doors and insulation.

Rest most aspects were covered by Dimple and other posters above . If you can find something under 5 yr age for a good price than you may get best of both world .

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Growing Old Is Mandatory ..Growing UP is Optional