Buying a House - Old or New?

You feel the time has come for you to buy a house.

Before you start looking around for a suitable house to buy, you will have decided on your exact needs in terms of space and amenities, will have worked out your budget and at least tentatively tied up loans/mortgages, etc. All these are issues of hard facts and can be tackled in a pretty straight forward manner.

But there is one question which is emotional and needs a little soul searching. Do you want to buy - an old house or a new house?

Let us draw a balance sheet of the pros and the cons of the old house and the new houses.

Modern new houses are generally designed to use space more efficiently and provide more amenities such as bathrooms, kitchen space, etc. as compared to the old houses. They are designed for technology-rich modern life and have adequate provision for modern gadgets like telephones, computers, etc throughout the house. Modern architecture and equipments such as heating/ventilation, etc are more energy efficient, resulting in lower energy bills. Since they are generally a part of a large housing complex, they will have provision of swimming pools, golf course, clubs, etc. Being new, it is obvious that they will require very little repair and maintenance expenditure for a few years. In any event, new houses are generally covered by a one year warranty.

New houses are built in less developed areas and being a part of a housing complex will not have any "character"; all houses will be practically identical. In such a housing complex you cannot be very certain of the type of neighborhood you will have. There will be restrictions on renovations and modifications you may wish to make. New houses are generally costlier due to escalating land costs and labor costs. Even though the repair and maintenance expenses will be less, you may have to pay common house owners association charges.

Old houses (we are not talking of "ancient" houses) are generally situated in well developed neighborhoods with schools, banks, marketplaces, entertainment centers in the vicinity. The neighborhood is already being lived in. Old houses, about 15 year old, were generally what we can term as "single family houses", they were not a part of large group housing or housing complex and so had a certain character of their own. Being old, lived-in houses, they come with developed landscaping. Use of a large amount of woodwork and high ceilings, etc lent a certain ambience of leisure and luxury to the old houses. Old houses are generally situated on prime property and may have good resale value. Old houses are comparatively less costly; also their prices are generally negotiable.

But after all old houses are, well, old! Old houses were not designed for the modern life and may not have the provision for telephones, computers, etc. that modern homes use. The buildings as well as the equipment such as heating/ventilating equipment, etc. may not be as energy efficient as in a modern house. The regular repair and renovation of an old house can be a burden unless attended to before purchase. Some people may feel comfortable with the lived-in character of an old house; others may shun away from the personality of the old owner that the old house may show.

There are non-tangible factors such as character, modernity, etc involved in this comparison and ultimately it is your personal preferences that will decide whether you opt for an old house or a brand new house.

7 House Hunting Tips: Buying Your First Home Together

Congratulations on the decision to buy a home. Isn't it exciting? Shopping for the perfect place to call your own and knowing that there aren't any lease agreements, issues with the landlord or the recurring feeling that you are paying someone else's mortgage when you could be paying you own is a terrific feeling. In this article, you will learn 7 very important tips to house hunting as a couple.

Choose a location. When you buy a home with your spouse, there's a lot to consider. What, if any, length of a commute would the two of you be comfortable with? Do you prefer the bustling city life with access to all of the amenities or would you enjoy a quiet country setting? When choosing the location of your new home, these are all important factors. In addition, price is an issue for most couples and rural areas often provide the most square footage and/or acreage for your money.

Discuss your budget. In most cases, a home is the largest investment you will make. When it comes to buying, your budget will be the single greatest determining factor in what type of home you will be able to purchase. Credit history is important, but most lenders offer programs for those with a few blemishes in their financial past. The bottom line is that your budget can make or break your dream of home ownership, so it's a good idea to sit down as a couple and write out your monthly income and expenditures. If you currently rent, you can leave this out of the equation because you will stop renting when you buy a home and the money that you are now using to rent can be applied toward a monthly mortgage.

Review your credit reports. When you are ready to approach a lender and request a mortgage loan, you will want to make sure that your credit report is accurate and, besides, it never hurts to know your credit score. If you find any inaccuracies, now is the time to correct them. You may find that derogatory comments on a credit file could result in high interest rates or, in some cases, the denial of your loan application. Make sure to check your credit report from Equifax, Experian and TransUnion at least two months prior to applying for a loan.

Talk about what you want. When you purchase a home with someone else, your desires aren't the only ones that matter anymore. There's another person in the equation now and their choice of home features is equally important as your own. If you are just starting out, a small home may be fine for now. But, if you plan to have children in the near future, you will need to think about whether or not a small home will be ideal for a growing family. The number of bedrooms and bathrooms will become an important choice and careful planning now could save you a lot of drama later.

Be willing to compromise. Ok, so you want a private office and your spouse wants a fireplace. But what can you do if the homes that you both like simply don't have these two amenities? Do you walk away from what otherwise may be your dream house or do you compromise? In most cases, the latter would be the most obvious choice. If it's a fireplace that you want, you can purchase a freestanding fireplace that looks just as beautiful as the real thing and you can create an office nook in one of the spare bedrooms.

Make an offer. If you are trying to sell a home, every realtor will tell you that you will likely receive offers that are lower than your asking price. When someone lists their property, they are usually asking more than what they will actually accept and this means you have some negotiating to do. When you find the home that you like, make an offer that is somewhat less than you can comfortably afford. This way, if the current owner comes back with a counteroffer, you can still accept and be within your budget.

Move in. This is the final step and, in most cases, the most fun of all. Now that your house hunting is over and all of the loan papers have been signed, it's time to move into your new home. Ok, so maybe moving day isn't the greatest but all of that hard work is going to be worth it in the end. When you can stop throwing your money away on rent and start building equity, both you and your spouse will be happy homeowners.