An exciting research has shown that more and more homebuyers prefer older homes over newly constructed ones.
Finance proves to be one of the major factors involved in this growing trend. Expectedly, older homes cost less: think taxes, operating cost, and insurance. When potential buyers are shown a builder's model, they are wowed with how beautiful it is but ultimately gets turned off after seeing how much the latest bells and whistles will cost them.
But other than the price, here are reasons why older homes beat new homes according to Realty Times:
Retro charm
If you are into mid-century modern or fancy Victorian shabby chic, you will only get that personality and those features with older homes. The good thing about buying old is its potential for upgrades, for improvements done at your own pace and based on your present financial stability. Most find it as a more practical route other than carrying a hefty mortgage to have it all at once.
More available
After the Great Recession, existing homes have skyrocketed in terms of market share traction, while new homes have plummeted to historic low.
Stricter financing
It's pretty understandable. With newer homes, finance and mortgage are way much stringent as compared to older and cheaper homes that don't take more than 30% of the household's gross income in order to cover for the insurance, notes, and taxes.
Higher building cost
It just costs more to build these days. According to National Association of Home Builders, with lumber and wood comprising 15% of the total cost of a single-family home construction and with lumber prices at 27% above their average, construction is an expensive project to tackle in every angle.
Commute is more expensive
Most new homes are built outside the city which necessitates commutes. Commuters living in the suburb are believed to spend $700 gasoline cost for their travels according to Department of Energy, which makes living in the inner city, in older homes, sound like a way better deal.
