Why choose a new home when comparing New Homes vs Resales
We are going to let you into a little secret. New homes cost substantially less to buy and run. OK, so maybe it is not a secret as such, but many home buyers and surprisingly many Realtors never do the math.
Low cost of ownership
Let’s take a look at some of the costs you could run into when buying a resale property:
- HVAC $5,000
- New kitchen appliances $2,500
- New roof $15,000
- New water heater $2,000
- Washer / Dryer $2,000
- Pool heater/pump $3,000
- New deck $10,000
Total $39,500
The above are just some of the items which you could need to replace when buying a resale property.
Add to this the cost of refurbishing the property to bring it up to your standard. This can easily run $30-40,000, and you are looking at close to $80,000 on top of your purchase price.
Now does the 10 year old property look such a great deal?
Even if you are willing to spend money on all of the above, you still DO NOT HAVE a low efficiency home. To do that you would need to replace the windows, doors and add insulation.
Guess what? Even then your home probably will not meet the latest building codes, PLUS it is a home which was designed a decade or so ago.
New homes feature floor plans which have been redesigned for a modern way of living boasting; more space, open plan layouts, higher ceilings, larger rooms, improved construction techniques, better quality materials to name just a few.
PLUS there are a few savings in store:
- A modern refrigerator can save you $1,100 over its lifetime.
- Energy efficient washer can save you 7,000 gallons of water per year
- Modern windows can save you up to 30% on your utility bills
- New homes will use on average, 3,500kw less each year.
So ask yourself this.
“Why do you want to spend the same amount of money to buy a resale property when you can get a new one which is better in every way for the same price?”
It doesn’t take a rocket scientist to work out the benefits of a new home over an old home does it?
“But we are looking to buy a holiday home, a villa near Disney and we want to be in a great community.”
Well here is the headline news
The newer communities are bigger, better, more affordable and they have more onsite amenities.
Just like running an old home, older communities cost more to maintain. The clubhouse may need refurbishing ($10’s of thousands), the pool needs refurbishing ($10’s of thousands), the gym needs new equipment, the gates needs replacing etc. The list goes on and although you will only pay a small part of the overall cost as part of your HOA fees, it can all add up very quickly.
Surely it makes sense to buy a holiday villa near Disney in a new community where everything is under warranty. Where there should be no ‘Extra Costs’ for at least 10 years?
If the above is not enough to convince you that a new holiday home is better than a resale, then just imaging you are planning on renting out your holiday villa and put yourself in the shoes of your potential renters.
If there is a new holiday home and an old holiday home for the same price. The new home is located on a new community with modern amenities, high-speed internet a brand new clubhouse; whilst the older home is on a dated community with slow internet, old gym equipment and the clubhouse is starting to look tired, which would you want to rent?
So you have decided to buy a new holiday villa instead of a resale, what other benefits can you look forward to.
New homes come with a 10 years builders guarantee, the appliances are all under warranty, your heating and cooling costs will be less because modern materials were used in the construction and the appliances are more efficient, on a like for like basis your HOA fees should be lower and your property taxes can occasionally be lower with a new home for the first couple of years.
Buying New Homes vs Resales
The ease of purchase
For the most part we have all bought, at some point in our lives, a resale property. We wanted to buy, the seller wanted to sell and then buy another house from someone else who wanted to sell etc. Welcome to the dreaded chain.
If just one person in any of the transactions fails to complete, you will not be buying the house.
With a new holiday home, you are buying from the developer. The developer has only one thing in mind and that is to sell the home. They are not in any form of chain and neither are you. Essentially, if you finances are in order and you find a new holiday villa you like then it is as good as yours. There will be no price changes or ‘gazumping’ as developer prices are fixed once under contract in the U.S. The only person who can mess up the sale is you because you don’t have the cash or you didn’t get financing.
Read our buyers guide and get a full understanding of how to buy a new holiday home near Disney.
