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Which Is Your Best New Home Option: Finished or Fix-It-Up?

Which Is Your Best New Home Option: Finished or Fix-It-Up?

Buying a new home is one of the most important financial decisions that anyone will make. One of the biggest challenges in the current housing market is the price of homes. There are few affordable homes on the market today for young people who are just starting out. Saving up a large down payment is not easy in the current economic environment. One way to save money on the cost of a home is to buy a home that needs a little work done. However, there are various disadvantages of buying a home in need of repair.

Which Is Your Best New Home Option- Finished or Fix-It-Up? Tiling ImagePros of Buying a Fixer-Upper

The biggest positive behind buying a home in need of additional work is that the cost will be lower. Homeowners who sell these homes typically do not want to deal with conducting the repairs themselves. This is a great way to find a deal in your local area. Many times, the repairs are minor and can be made quickly. You need to make sure to get a great home inspector who is going to conduct a thorough inspection before placing an offer on a home. It could be a financial disaster if you buy a home and it needs multiple areas repaired without you knowing it.

Pros of Buying a Finished New Home

Buying a new home is more expensive than buying a home in need of repair. However, there are other advantages to choosing this option. If you are the type of person who is constantly busy, buying a home in need of repair may not be your best option. Buying a new home means that you will not have to worry about major repairs for many years.

Working with an experienced home builder is a fun process for many people. You are able to design your home all the way through, and it feels like home as soon as you move in. When buying a home in need of repair, it may feel like years before you are able to feel like the place is truly home to you.

Location

As a general rule, new homes are generally built in growing areas that many people want to move to. However, this is not always the case. You need to conduct research on the demographics of the local area before deciding to build a home there.

Location is one of the most important variables when choosing a home. If you buy or build a home in a growing area, you will be able to take advantage of the price appreciation on homes that goes along with the growth. This can help you increase your net worth substantially over the years. If you believe that your local area is going to continue growing, buying a newer home is the best financial decision. New homes appreciate faster in value than older homes that need repair.

Rental Homes

For some people, investing in real estate is a great way to make extra money and build wealth for the future. When it comes to buying a rental home, buying a property in need of repair is the way to go. Your renters may damage your property throughout their lease, and it is much less expensive to repair an older home.

The best option for your situation is going to depend on your goals and financial condition. If you can afford it, buying a new home is the best option when looking at future price appreciation. If you are wanting to save money or invest for the future, go with a home that needs some work done.

 

Photo credits: house, tiling

About The Author

Jeff S.

Proud father and husband. Loves music, Nine Inch Nails, UFC and inbound marketing.

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