Newer Homes May Cost Less In The Long Run
A newer home may actually cost less than an older home, even if it initially costs more. If that statement seems contradictory… read on!
Older homes are often less expensive to buy than newer homes because of the lack of different amenities, square footage, upgrades, and more. However, over the long term, the less expensive older home may actually cost buyers more.
Recent data shows what’s obvious… older homes come with bigger annual upkeep expenses because key items are beginning to wear out or they don’t have the energy efficient technology newer homes do. When all the operating costs for the year are weighed, newer homes often come out ahead.
According to a report by the NAHB, homes built before 1960 have more than double the maintenance costs of homes built after 2008. This same research showed that for the same overall cost, a consumer can pay 23% more for a newer home and still have the same operating costs in the first year.
In a new or older home, paying attention to key items with regular maintenance can mitigate operating costs significantly.
Water damage – Grading, clogged gutters and downspouts can wreck havoc on siding, windowsills, and can even cause water issues in the foundation and basement if not addressed.
HVAC – One of the simplest and most inexpensive ways to maintain furnace and air conditioning performance is by changing the filter every month. Dirty filters mean more than dirty air, which is bad enough. It also means the unit has to work harder, which can also shorten its lifespan.
Windows – Regular caulking and painting can keep window trim from rotting under the elements sooner than it should.
By making new homebuyers aware of the whole financial picture of new and older homes instead of focusing just on the monthly mortgage payment, they may consider a wider range of homes than they would otherwise.
Source: Shelter Mortgage Company