Taking on a real estate investment is not a joke; there are plenty of things to consider such as location, budget, basic needs, as well as how much you are willing to take on. For every person, the preference also vary - some like a fixer-upper (a project and wouldn't consider a new build), while some only have eyes for move-in ready homes (hassle-free buy from the get go).
To help you decide, Apartment Therapy lists the pros and cons for each option:
Fixer-upper: PROS
Cheaper initial cost
Obviously, a home that still needs fixing here and there would cost a lot lesser than one that is in tip-top shape.
Adding value
By doing upgrades and investing both monetary and some elbow grease, you are increasing the value of your home and this is an important factor if you plan to sell your home in short- to medium-term.
Design dream
You have full control of a remodel, of course depending on your budget. You can choose to build a high-spec kitchen, or a fab deck - it's your choice!
Fixer-upper: CONS
More work
Some hands are going to get dirty - it could be yours or some contractors. The bottom line is, expect for sanding, tiling, and/or painting in the couple of months or years in.
More time
Depending on the level of renovations needed, moving in may take a little time. Even minor ones can take time and hold off your move.
Renovation costs/hidden costs
Aside from the renovation costs, you also have the hidden costs to worry about. You never know what's behind that wall if you tear it down. More often than not, renovation projects don't stick to the budget, so it is highly recommended that you build a buffer.
Move-in ready: PROS
Easy
Why, of course! You can immediately move in a freshly-finished home and start decorating as soon as the deal is closed.
Newer technology
From kitchen appliances, home security, to integrated stereo systems, a new home boasts newer technology compared to fixer-uppers.
More energy efficient
With new homes, the insulation, glazing, and heating methods are given to be better, making it a more energy-efficient choice.
Move-in ready: CONS
Expensive
A fact is that you are actually paying a premium for somebody else's work when you buy a new home; unlike with a fixer-upper that comes cheaper since you are pocketing the profit.
Design concessions
You are likely to sacrifice some style preferences with a new home. Chances are, the developers or flippers don't share a similar vision with yours.
Quality
This point may not be entirely fair as there are indeed conscientious contractors out there. However, they tend to offer more quality and attention to detail to end users than a company or a flipper. Don't be surprised if you make some disappointing discoveries in terms of the finish/quality of certain areas in your newly-reno'd home.
