Build a New Home or Buy Existing Part #4

In terms of buying anything used, there is always the issue of deferred maintenance which we talked about yesterday. On bank foreclosures the costs will typically be much higher but all used homes have ongoing maintenance costs. Even if you buying a home in a normalized sale, your maintenance costs will be higher than a new home. For example if the roof is seven years old, it will need to be replaced in seven more years. On a new home you gain the full use of the materials before any maintenance is required.

Also, new homes, especially those built by Amaris Company, are more energy efficient compared to even homes built just ten years ago. If you are buying a home built before 1990, the yearly energy costs per square foot are significantly higher. An Amaris built home will be heated and cooled for less than $100.00 per month for an average sized home. For every $100.00 per month saved on utility costs it translates into 17K in extra purchasing power. In other words, if your energy bills will be lower by $100.00, you can spend 17K more on the house and be in the exact same monthly financial position. When has anyone ever analyzed the energy bills of a used house before making a buying decision? Answer; almost never.

The other thing to think through is the amenities of the home. Does it have a deck? Is the kitchen the way you want it? Does it have the fireplace you can't live without? Does it have a deck or three season porch? If you are going to add an addition or remodel in a year, you might not have made the best decision.