Brand new house or old house? investment?

Question

I am in themarket for a house in Houston, Texas.
I don't know if it is better to buy an older house or a brand new one.

I am in Houston for 4 years only and I want to know where it is better to invest it in a new house or an old house. I mean regarding to the appreciation when I want to sell it later.

Any extra information about houses in houston and good areas for investment would be really great..

Thanks

I am comparing between a new house and an old house in a good location.

Answer 1

in real estate, it is true that there are only 3 words you must know:

location, location, location. if you wanted a gas station, where would you want it to be? if you want a house, where would you want your family to live and why?

then in any metro area, usually an older house will sell easier in 4 years due to how they had been constructed. new construction (well, you have to really check out the reputation of the builders via the better business bureau as well as the attorney general's office of fraud. if you bought new, you want to know how long the builder has built houses, where they were built, and were they sold in a buyer's market or a seller's market--since you can then see why some took longer to sell. there are many more factors to consider when purchasing new houses, such as buying "on spec[ifications]" so you can choose upgrades to the builder's standard offers of appliances, cabinets, flooring, fixtures, etc.)

my clients, and i, do not like newer construction mostly because most builders do not pay attention to the most basic structural element: the foundation! if the foundation is poorly constructed, it leads to flooding, molds, insect infestation, but worse, to a cracked foundation. that begins to show fast in floors sloping A LOT, doors not closing properly, etc.

an older house in really good condition and on a large lot--particularly, corner lots with a lot of sunlight and in great structural condition, usually attracts more buyers because the rooms are larger, many times the walls are plaster and not drywall, the joists that hold up floors and the roof are both correctly measured as real 2 x 4s (not modern lesser dimensions), and many times, are so close together that there is no floor sloping or sagging (but expect a little just due to the house settling), as well as that you can usually lay more layers of roofing material on such joist structure.

the layout and walking or floor pattern is usually far better than a newer house, but you may need to add a bathroom or powder room for resale purposes. closets, unused areas under stairs, and old pantries are good places to put them if the soil stack is closeby, otherwise, you must put in entirely new plumbing. also,

if you can retain a pantry as well as have a large, eat-in kitchen with many (maybe double hung) cabinets with newer appliances when you sell, this will be a definite plus. ALWAYS, well designed, thought-out kitchens and baths give you the most return on any moneys you use to renovate them. it will be best to have a kitchen window that opens over the kitchen sink as well as, if possible, sliding glass doors that make it easy to go from the kitchen to an exterior eating area in nice weather. i will NEVER buy another house (this is what you usually find in the newer ones) with a tiny kitchen with no window above the sink, or one that doesn't show me my yard!

curb appeal matters, so be sure that when you sell, you have a nice garden. sometimes when you buy an older house, you will even get large, healthy antique rose bushes, shrubbery, as well as large, shady trees. in houston, it's likely to find an older house with a wraparound porch, ah, such a delight!

you should buy a house that faces east and west, not north and south because the smart buyer will pay more for morning as well as afternoon sunshine. natural light and hardwood floors, as well as tall ceilings with tall but modern windows, flanked by solid wood moldings that match the solid, paneled doors of days gone by, crown moldings, chair rails and the like, preferably unpainted, and a fireplace of any type, as well as built ins (bookcases aside the fireplace, hutches, pantry storage bins, etc.) lead to more money gained and quicker sales.

of course in houston, you will most likely have a yard with a built-in swimming pool. the deeper it is--where one dives--the better, as well as stairs where children play in shallower water. it should be flanked by either a patio or deck(s). cabanas are old fashioned, but such charming and cultured little changing rooms. a small bathroom within the cabana is preferred. you will want to have much space to place chaise lounge chairs for sunbathers as well as areas in the shade. again, the more flowers, shrubs, and beautiful trees in the garden surrounding the pool, the better.

if you do end up remodeling kitchens, baths, and pool areas, even though granite and marble looks so chic chic, i do not recommend that you use it for flooring at all, unless it is made so that one will not slip and kill himself!

try to get a 2 story house with a wide, solid wood staircase, as well as wider doors to move large furniture pieces in and out.

it always is convenient to have a basement and/or attic for storage. a lot of newer houses are built on slabs, with only crawl spaces as basements, and often, they are only 1/3 to 1/2 the length of the house. full basements are far better.

if you have any specific questions, please use the email address provided here. though i don't market in houston, i know it pretty well. i also know the sorts of houses that are GOOD houses, which are mostly OLD houses. but be sure to have a home inspection! i hope you enjoy living in your house while you are in houston.

Answer 2

Instead of looking at new or old houses as a comparison, i instead would look to the subdivisions and the keys to location.

Is the house located near good transportation, good schools, growing communities, good governments? And call the local school board to see if the k-8 base is increasing or decreasing. Are higher income people movin in or movin out?

What about the surrounding subdivisions? How have their prices held? Is it in a Planned unit Development, what is the history of their manangement? How many people are current or deliquent on their assessment for the home owners association?

Then you can make an informed choice.

Good Luck

Answer 3

I agree with teen... What you ought to do is ask a local realtor to provide you the Organization's statistics on different areas so that you can see the historical gains and losses for specific areas that you are considering. You might also check with the state site and see in the Economic Development area what reports are available regarding real estate in the areas you are looking at.
Old or new doesn't matter with the exception of the guarantees that a new home usually provides.
Buena Suerte

Answer 4

Houses usually appreciate. If the neighborhood goes to crap or the market falls apart like a couple years ago it will depreciate. But 90% of the time houses appreciate. Building a home is actually a pretty good decision. Just don't build the most expensive house in the neighborhood because the cheaper houses will bring down the value of your.

Answer 5

With any home, but particularly older homes, the thing to watch out for is things like lead paint or plumbing, unsafe wiring, asbestos insulation, out of code modifications made by previous owners, water damage/mold, leaky old windows or roofing materials, and older appliances or HVAC equipment needing replacement. The costs of correcting or upgrading this stuff for future salability can mount up quickly, eating into your profits.