What does it take to purchase a lot with an old house and update and remodel everything?
KC asked:
Which would be cheaper?
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.
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March 14th, 2009 at 2:08 am
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That depends on what condition the older house might be in.
Assuming that the place is structurally sound and you get a good deal on it, you might come out on the less expensive end.
There are far too many variables in this scenario to give you a concrete answer.
March 16th, 2009 at 9:45 pm
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If you purchase an old house make certain you know what you’re getting into. Spend the cash to have it inspected by a qualified building inspector. - Foundation, structure, windows, plumbing, electricity, heating system, roof. Check with the municipality to see if there are any issues with the house as well to see what the plans are for the neighbourhood. Get a contractor’s estimate as to what need to be done and the cost. Then compare that with the cost of building new. Remember in certain areas there are contractors looking for work so get competitive bids and make sure you compare apples with apples.
You might also want to get a real estate agent involved to find out what the market value of both a renovated house and a new home are. You’ll get a good idea which is a better business decision, renovating or building new.
March 18th, 2009 at 1:27 pm
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There are lots of variable with this question. If it is just cosmetic for the older house and not septic, mold, roof, foundation or a combination the older home rather than remodeling is generally cheaper. Especially when you consider taxes into the equation. Also, it depends a lot on your resources.
If you want to purchase either in northern NJ let me know.
March 19th, 2009 at 12:55 am
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Renovating an older home is not for the faint of heart. With the information provided, it would be impossible for anyone to accurately gauge expenditures. However, renovating an older home is a full-time commitment. It is unrealistic to think that you can manage this project on the weekends. City officials, plumbers, electricians, carpenters all work business hours so if you are employee, this could pose huge problems. Based on the last three older homes we’ve renovated (I’m defining older as pre 1940) a good estimate for expected repairs and investments is purchase price. For example, if you purchase your older home for 100k you can reasonably expect to dump another 100k into it . . . and remember construction costs are generally cash so you need that money in the bank prior to renovating.