What does it take to purchase a lot and update and remodel an old house?

Question

Which would be cheaper?

1. Purchasing a lot with an older house and remodeling and updated everything in it.

OR

2. Purchasing a lot and building a new house.

Answer 1

So many variables too lengthy to define here.

Age/condition/location/budget/viability of the house to even be a rehab/ etc.

Then certainly FIXERS abound.

New housing costs are at about 3000 % over the real value.

Obviously there are other issues such as liveability of the old house while you work it, and so many more. Actually my fave kind of deal though.

Steven Wolf

Answer 2

Old houses come with old architecture and old structure. Many built before about 1930 have no fire breaks in the framing (these are cross braces between studs that prevent the entire wall from becoming a chimney when a fire starts). They have old wiring (grounded outlets were not common until the sixties). Most are functionally obsolete (having only one bathroom, for example). They have old plumbing. And, they are often structurally unsound, so cosmetic upgrades do nothing but cover up problems.

I have a very good friend who has been doing this very thing in Jerome Arizona for the past couple decades. These houses are mostly eighty years to well over a hundred years old. ALL of them have required structural upgrades, including, in some cases, new footings and foundation. This is a huge project. However, he has made money doing it, so if you like old houses, it can be economically feasible. If you like old houses.

New houses have all the modern safety stuff, have more modern architecture, with more open interiors and higher ceilings. They have modern electrics and modern plumbing. A new home can have as many bathrooms as you like. A new home will have all the proper ducting for central heat and air. A new home will have better insulation and better windows. And, it is true that some builders build fast and loose, but not all of them do. From the standpoint of safety and functionality, a new home is the better choice. Unless, of course, you like old houses. Then, the money is not the real question.

Answer 3

It depends on the condition of the house. How many 'updates?' I personally purchased a house built in 1884 on a double lot on a great street. Updating it included all new windows, roof, doors, boiler, put in new flooring throughout, enameled all the woodwork and kitchen cabinets, new sink, countertop, faucet and lighting, knocking out a wall, and water-proofing the basement (which cost about $4000.00!) I also added electric heat to a back hallway and sun porch. I still need to put in a bathroom and update the existing bath. However, my initial mortgage was very cheap because it was a 'fixer-upper.' And what I put into it STILL got me off cheaper than buying new. My house, BTW, went up in value due to the market and my upgrades by 250% in the past 5 years. I did not even put near that into the updates. It just depends on what you need done and who is going to be able to do the work, and how much the work will cost you. Also...IMHO...older houses tend to be built a little sturdier than the new ones going up these days. I see an empty lot on Monday, and by Friday, an entire new house. You can not CONVINCE me that these homes are solidly built. I'd take an old fixer-upper over a new one, any day.

Answer 4

Both answers on here missed the main point. you have to ask. This is the point, if you have to ask, you don't know what you doing, haven't any knowledge in the building trades and, don't know about Real Estate.

What you want to do is follow all these programs on T.V. about "flipping" homes. You don't see the background cast in these pictures, do you? There are carpenters, plumbers and craftsmen that they don't show.
They come out with a curtsy girl that acts like she knows something, she's getting her cues from the side. They already know the prices, the cost of remodeling, etc.

It gives you the idea that you can go in there and just start working but, you really can't.

First, you have to be a licensed carpenter or plumber, or have a lot of friends that are. You need to know a few good electricians.
The you have to have the funding for this type of project. Lot's of it.

Answer 5

You have to figure it out both ways.
Remodeling a house doesn't usually result in much increase in value unless you just make basic cosmetic changes.
It takes money.