Buying old vs new house in Arizona...?

Question

We rent now, and we want to buy a house. One of us prefers the new-builds and one prefers the older houses, so which house sounds like a better deal? Consider price, investment, area, etc... They will both cost about the same monthly payment, and are similar distance from work, freeways, airport, downtown, etc

New-build house: On outskirts of town where there's lots of new developing, shopping, etc. We qualify for 1% down, interest-only, least out-of-pocket as possible. No hidden structural surprises, which would be defects covered under warranty. Pick colors/carpets/floorplan, design center, etc.

Older house: Closer to central metropolitan area, so it's near other older structures, and some pockets of crime & crummy apartments. We will be lucky to get in with 3% down, and hope to talk seller into paying closing costs. Not "energy efficient" and this is the desert where the AC bills get up to almost $500 in July/August even though it's only 83 degrees in the house during day.

For the same monthly payment, I would prefer the nice shiny new house, and we can get it for less money out of pocket than the older house. The old house is cute, but it's older (like late 70's I think). And we're only planning to stay in it for the next 5 years and then sell. Which is a better buy for a 5-year investment place to live?

His real estate people barely got us qualified for the old house. But we still have to find the down payment.

My real estate folks, I've worked with them before so I know they aren't a scam, can get me in for 1%.

That's not the question though. The question is which is better, old house or new house. Landscaping & mature trees aren't much of an issue in AZ where all "trees" look like overgrown weeds. No such thing as shade trees here. The old house you really can't see from the curb due to all the palm tree thingies blocking the view. SO there goes your curb appeal...

Answer 1

Shiny new houses have all sorts of punch list problems -- some never seem to go away. A lot of newly built subdivision homes are slapped up quickly and you can end up with all sorts of expensive problems.

While older homes tend to have settled, they could still have problems due to lack of maintenance. Be sure to have a professional inspector check the house thoroughly. It's money very well spent.

Older neighborhoods tend to have established landscaping and more individual touches making each house look different. New subdivisions tend to be the opposite.

Answer 2

Well In my opinion and Ricks My Bf We say go for the newer one As that way YOU would have less maintence and YOU can probably come up with the lower down payment easier Plus in the long run the new one might sell better 5 yrs down the road
Now on the older home They are built solid usually Depends on the size of the home YOU want also...And if you would rather have your own way of it being built and your own landscaping
Preferably I would shoot for the newer one Especially if the price is about the same but less down paymen....YOU let us know what you think also....
GOOD LUCK and if you can send us some pics of both homes YOU Have my email address OK HUGS

Answer 3

Depending upon where you work, the nicest cities are as follows: Scottsdale (a bit expensive), Tempe (also a bit expensive, but close to university, shopping and lots of downtown culture) and Chandler (The suburbs just outside of Phoenix; very reasonably priced housing and a very good part of town all around.) Mesa is a very very large area, so looking there can be a crapshoot- it spans from west mesa (Kind of crappy) to east mesa (Retirement community) and has a few good spots in between, but unless you know what to look for and where, you could end up in the middle of nowhere in a very expensive house.

Answer 4

I will tell you what I tell all of my clients...
First thing you need to do is find out how much you qualify for on the mortagage market. Deal with someone that is reputable and can give you many options for you to choose from. Second you need to get a Realtor that works in the area's that you are interested in. Old house vs new build has alot of pro's and con's. Beware any offer that seems to good to be true, a 1% down interest only loan means that you ARE NOT building equity in your home. You need to talk to a professional that can help guide you in your effort to buy a home.