Build new house or buy old?

[Java Guy]

So i'm tired of paying off everyone else's mortgages and finally going to move into my own house. The question I have is should I buy an old house that needs updating or buy land and build a new house? Any advice from the current home owners out there? From what I have seen in the area I can buy a larger older house on existing land for the same price as building a smaller house on a smaller amount of land. For instance, I found a 1940 farm house sitting on 8 acres with a 3/4 acre pond. The inside looks like nothing has been done to it since 1940 so there would be a lot of work. A few miles down the road there is 4 1/2 acres for sale and the list price for that vacant land is already half of the 1940 farm house. Grrrr so confusing

 

[Chuck]

So i'm tired of paying off everyone else's mortgages and finally going to move into my own house. The question I have is should I buy an old house that needs updating or buy land and build a new house? Any advice from the current home owners out there? From what I have seen in the area I can buy a larger older house on existing land for the same price as building a smaller house on a smaller amount of land. For instance, I found a 1940 farm house sitting on 8 acres with a 3/4 acre pond. The inside looks like nothing has been done to it since 1940 so there would be a lot of work. A few miles down the road there is 4 1/2 acres for sale and the list price for that vacant land is already half of the 1940 farm house. Grrrr so confusing

I don't know about where you live and your housing costs but here it is usually cheaper to start from scratch. Remember, anything old will have to be fixed eventually. I was a building contractor for years doing remodels and from ground up. Where the expense comes in on older houses is not what you see but what you don't. For instance the plumbing on your 1940's house is either black iron or galvanized and will have to be replaced. I don't know what type of house it is or how it was made but I can guarantee you will have to gut most of the house and plumbing do overs are not cheap. Then there is the electrical wiring. All of that old wiring was aluminum and is nothing but a fire hazard. You will end up tearing up most of the house anyway. I could go on and on about the pitfalls of restoring an old house but there is a sunny side to buying an old house and that sunny side is materials. By careful demolition, something you can do yourself, you can reuse a LOT of the lumber and hardware and depending on the foundation or underpinnings of the house you may be able to build on top of that from scratch with a lot of your saved lumber. Of course if you have to hire someone to do the demo, cleanup and the rebuild it isn't worth it.

 

[ShanniB]

I agree with Chuck, there is too much uncertainty with older homes, but also understand what you are saying Java Guy. It would be very hard for me as well to buy a smaller plot of land when I can spend the same amount of money and get more. I would ave to take some things into consideration:
how much would it cost to tear down the existing building?
would this be something I can undertake on my own or will I have to hire someone to get it done
the cost associated with the disposal of the demo.

You could research the options and hopefully be able to make the best decision for you..

Best of luck..

 

[marlingardener]

We have had three older homes, and are in a "middle-aged" home now. I would choose an older home every time! The construction, materials, and workmanship are better in an older home. If you don't believe me, just try to find a straight 2x4 at a lumber yard or big box store.
A 1940's farmhouse on more land--go for it! If electric and plumbing need updating--you'd be paying for new electric and plumbing in a new house, too. Older homes were built to be lived in. Newer homes are often built because they are easy for the contractor.
With the farmhouse you will have something unique. With a new home, unless you hire an architect and have a home designed for you, you'll have the same house that dozens of others have.

 

[Chuck]

We have had three older homes, and are in a "middle-aged" home now. I would choose an older home every time! The construction, materials, and workmanship are better in an older home. If you don't believe me, just try to find a straight 2x4 at a lumber yard or big box store.
A 1940's farmhouse on more land--go for it! If electric and plumbing need updating--you'd be paying for new electric and plumbing in a new house, too. Older homes were built to be lived in. Newer homes are often built because they are easy for the contractor.
With the farmhouse you will have something unique. With a new home, unless you hire an architect and have a home designed for you, you'll have the same house that dozens of others have.

True, the construction, materials and workmanship is usually better in older homes. BUT, the labor cost of renovation is much higher, at least twice as much than in new construction. You do not know what is behind those lathe and plaster walls. You will have to completely remove all of the interior walls to rewire, replumb and insulate. Have termites eaten up the floor joists. Has dry rot weakened the roof joists. Most of the older homes during the time mentioned were post and beam construction not a slab nor pier and beam construction. By trying to restore an old house you basically have to tear it up to rebuild it and in new construction you just have to build it. I agree that old farmhouses are unique and if well kept and properly maintained probably the way to go, but to start a project like this without a professional older home inspector. with a lot of references, to go over the entire home with a fine tooth comb is IMO is the height of irresponsibility, especially since the OP stated the house was in ill repair. An inspection of this magnitude is not cheap either. It may or may not be the way to go as the actual land price is the determining factor even with the salvaged lumber

 

[marlingardener]

We have restored two older homes (1900 and 1870) and corrected the unfortunate "updates" made to a 1910 home. I stand by my opinion that older homes are better made and well worth the effort. I don't think Javaguy said the home was in ill repair, just that nothing much had been done since it was built. Around here an inspection by an inspector that specializes in older homes costs about $400.
I would hate for anyone to back off a charming older home out of fear of what "might" be needed. Find out, figure out if it's within your budget and/or capabilities, and enjoy your new home either restored or newly built.

 

[Chuck]

I guess we will have to agree to disagree. I have worked on far too many older homes where what was at first sight something that was thought to be minor, when torn into mushroomed into a nightmare, especially on 2 story homes and homes with a lot of interior load bearing walls.

 

[KimmyMarkks]

I personally would prefer to buy a new one but it's not always possible budget wise. You can't go wrong wth fixing up an older house. You'd increases the value and build equity especially if you plan to sell it in the near future. Just make sure you have contiguity funds incase when you are fixing it up there are hidden costs. I'd recommend talking to a trusted contractor before you buy anything. Good luck

 

[Pat]

I like to watch the HGTV shows that show people remodeling homes and the surprises they find when they start to open up walls. New laws will often cause you to replace plumping to get the required permits to remodel your home. If you are doing the work it can be time consuming if you are paying to have the work done it could be pricey. Either way it will cost you some money.

 

[Esther Knapicius]

It would depend on your skill level for remodeling an older home versus buying a new (done) home. It also depends on location and the amount of land you want. It depends on if you can assess an older home and truly find what is wrong with it. It depends on if the older home has the woodwork (that is not made today) versus the dull crap they use in the new. Older homes have more charm to me, if you want the charm in a new home, and have it built it costs lots of money.
It depends on your mental ability to live there during the remodeling. It depends on your open mindedness to seek out products from unusual sources to use in the remodel (to save money) and also to create the unique. If you buy a century home, there are sometimes discounts to bring it back to its original glory, so that depends on your fortitude to seek that out and comply. Finding the original paint color for the older home, the history, all that is exciting to me. But it all depends. And it depends on the money you have, and the time you have. Oh, yes and your physical abilities and stamina.

 

[Beth_B]

I agree with everyone. LOL.
I'm in construction (painting contractor) and personally like older houses but they definitely can be more work. I have no idea how the cost comparison would go...I have always bought older (much older, usually) homes and depending on your desired area that is probably the cheapest option.

If you're handy and into home repair and can do what needs to be done when updates and repairs are necessary on an older house, or can afford to have it done, that can be a wise choice and cheaper in the long run.

On the other hand you can have a new house built to your exact specs just as you want it, with everything new and a home warranty, which can also be awesome. Although there may also be issues, sometimes serious, with new homes so choose your plot and builder carefully.

A 1940s house on acreage with a pond sounds like my dream house! I bought my current house on a half acre for ridiculously cheap ($6,000) on a quiet dead-end road but since it was built in the late 1950s it needs constant attention and upgrades.

 

[Java Guy]

You guys are the best!! Any and all information is more than appreciated. I could use more, even if it's something I don't want to hear... So here are some pictures of what I am looking at and some more information. It looks alright to me...just a lot of updating in most of the rooms and kitchen.

First thing that has to be taken into consideration is that my father is a general contractor and both of my brothers build houses for a living. This means I have access to reliable cheap labor as well as knowledgeable inspectors. I could have asked them for their advice but I am trying to leave them out of my decision as much as possible. Also, I will be using my VA loan for this and the VA will not let me buy a house that is falling apart.

There are two HUGE things that have to be factored in this decision. No matter what I end up doing, I will be in the country. My house will need a well and a septic tank. So, what are the costs if I buy land and build a brand new house where I have to dig a well and put in a septic tank? If I have spent $80,000 on just the land, how much will be added to that just putting in a well and a septic tank? Does that put me well past $100,000 without a single thing done in the construction of the actual house? The house I am looking at is $140,000 with an existing well and septic tank. Obviously the conditions of the existing well and septic tank will be a priority. The sellers do live there at the moment so that is a good sign.

The house is 4 bedroom, 2 bath, 13 rooms, 2792 square feet. I was wrong about the acreage, it is only 4.42 acres with a .75 acre pond. The pond is actually a mini lake. How much would it cost me to have that put in if I buy a bare lot and build a new house? If I decide to build a house, how do I avoid having a generic cookie cutter house I see being built all the time? I think that would require hiring an architect to design one how I want it...how much extra would that cost?

I think it all comes down to the structural condition of the house and the status of the well and the septic tank. If the house is structurally sound and there are no issues with the well and septic tank, I have to make an offer. What do you guys think?

 

[Beth_B]

That looks like a very well-kept house, Java Guy. The metal roof would be a big plus for me, it should last forever.
That's the sort of house I'd buy in a heartbeat...especially with your construction connections, upgrading (if you want) things like the older cabinets and paneling wouldn't be that big of a deal.

Coincidentally I am painting a house just this week that is very similar, just a bit smaller. Out in the country on 4.85 acres with a large pond stocked with fish,woods, a pole barn, but just ten minutes from a town with all the major shopping amenities. It just had a bunch of upgrades (new tile, countertops, wood floors, bathrooms re-done, etc) done and will be listed for sale within a couple of weeks.

 

[Esther Knapicius]

the second paragraph you said certainly gives major advantage to purchasing an older home.

Putting in a septic tank--usually there is a flat rate for most tanks, ---as long as the land "perks". If it does not then there is another story. Just because there had been a septic tank there before does not always mean the same type can be installed, there are two houses in my area that had to have a mound when for the first many years had an underground tank.
The new well--cost always depends on the "depth" the machine has to go to find the water.

The house layout is interesting, seems like they were add ons, As far as pond/lake--have not a clue regarding. I have always had healthy running creeks. Does a natural spring feed the lake?.

I guess with your relatives in that field, they should nit pick the house to see if its good or will have mysteries abounding later.

I think the added bottom line is the "views", and the location.

 

[Java Guy]

Beth, I swear it sounds like you are working on this house! The only difference really is the pole barn. Definitely remodeling the interior. Aside from any possible major issues, all panelling, wallpaper, carpet, cabinets, counter tops, bath tubs, shower, toilets, tile....all going to eventually replaced. I'm not concerned with getting it all done at once. I'll just work one room at a time.

Esther, thank you for bringing to my attention possibe issues with the septic tank. I'm not sure how I would feel about having a mound where the tank is. I would prefer the tank be completely out of the way and a nice flat yard. I think you are right about there being add ons. There is one big room that I attached a picture of here. It is also clearly seen in the pictures of the outside of the house. Ito a 500+ Sq foot room. It's really square. I don't particularly like the way it looks on the outside and would have to modify it somehow to make it more rounded, more like part of the original house rather than some modular attachment like it is now.

I'm not sure where the water comes from for the pond / lake. The property appears to be surrounded by corn fields.