Realtor® to Buyers and Sellers in Encino | Sherman Oaks | Studio City | Van Nuys | Tarzana

New Homes Versus Older Homes – Is the price worth it?

Ralph-Bunche-Home-1I was reading a fascinating article about the difference in cost to maintain an older home (built in the 1960’s or before) compared to those built within the past 5 years.  In a nutshell, you’ll probably end up spending around $300 more PER YEAR to maintain your older home, compared to a new one.  If you buy a newer home, over 30 years, you’ll save almost $90,000 in estimated maintenance and utilities! Here’s the full article: The National Association of Home Builders is convincing buyers that they can afford a higher-priced new home by utilizing data from the U.S. Census Bureau and the Department of Housing and Urban Development. NAHB discovered that those looking to buy can actually purchase a more expensive newer home while achieving the same annual operating costs as an older, existing home. “Homebuyers need to look beyond the initial sales price when considering whether to buy new construction or an existing home,” said NAHB Chairman Rick Judson. A study by NAHB first researched how utility, maintenance, property tax and insurance costs vary depending on how old the home is. The study found that a home built before 1960 would average $564 a year in maintenance costs, while homes built post-2008 average $241. Additionally, operating costs average nearly 5% of the home’s value for older homes made before 1960, while the costs average less than 3% when the home was built after 2008. “They will find that with the higher costs of operating an older home, they can often afford to spend more to buy a new home and still have annual operating costs that fit their budget,” noted Judson. Also studied by NAHB were the first year after tax costs of owning a home — purchase price, housing payments, annual operating costs and income tax savings — which revealed that a buyer can afford to pay 23% more for a new home than a property build before 1960 and still maintain the same amount of first-year annual costs. Source: NAHB

Thinking of Selling?

Thinking of Buying?