Need some advice on a house I want to buy

["Richard"]

what is the difference between the resale value of a brand new house vs. a house that is 15 years old? is it harder to sell? does it not go up in value as much as the new ones do? Any info would be great

[SGH]

There are a lot of variables here. Where? What kind of house? etc...

Generally, a new house appreciates faster ceteris paribus.

Furthermore, newer houses are almost always easier to sell. Keep in mind, I'm only a student - however, my father was in the construction game for 20 years, so I am speaking from minor experience.

So UofT's not taking all your money eh? Enough to buy a house?! Sounds like I went to the wrong school.

[little brit]

Are you at all handy? Can you do basic repairs and decorating yourself. If you can and see potential in a property then if it were me then I would go for the older property, as it is amazing what you can do to the resale value. Remember, location, location, location. is the buzz word for easier to sell properties. and if the property looks like hell cosmetically and maybe is being sold by the bank then you can get a gem. You could rent out rooms to students too and not worry about it so much if it is not perfect to start with.

If you are not inclined to do anything to the property or don't want any hassle at all, then you would do better with a newer house. I wouldn't really recommend a brand new house as you would be surprised how much the little things cost that the homeowner has already done. I have bought both and have done better in all cases selling the older property. That has been my experience anyway. Good luck it is a big step.

[spackler]

A new house in an old neighbourhood (infill) can do well, but a new house in a new subdivision will depreciate in the short term. The reason for this is that most people interested in purchasing a new house in a new neighbourhood can pay the builder the same price you paid, and get their own customizations. The only time you might be able to extract a premium in the short term is if the new development is sold out.

Neighbourhood/location is everything. You're much better off investment/liquidity-wise buying the cheapest house in a good neighbourhood that the most expensive house in a less desireable neighbourhood. And good money can be made from buying early in neighbourhoods that are transitioning from bad to good (like Hintonburg, but you're probably too late there).

["Richard"]

Thanks boys. I will be making my offer in a few days. I'll keep you all posted. I picked the older one and the newer one. I'll just put one up for rent... after all I'm rich! Do you think I can pay for both houses in cash? I'll just give them a bag of money

[Indio]

Thanks boys. I will be making my offer in a few days. I'll keep you all posted. I picked the older one and the newer one. I'll just put one up for rent... after all I'm rich! Do you think I can pay for both houses in cash? I'll just give them a bag of money

Hmm, sounds like your new found love of Match Play is finally paying big dividends

["Richard"]

0-2 baby!

[jvincent]

Irrespective of old vs new, location, location, location.

If you buy in a good or improving area, prices will go up. Are we talking Ottawa or TO here?

["Richard"]

hey john, we are taking Kanata - bridlewood

["Richard"]

PS you guys know I was just kidding about being rich and buying them both, I went for the old one, lets see what happens. If I was rich I would have bought this site off dan and banned him

[jvincent]

I can't really comment on Kanata since I'm a downtown guy.

I know in my area prices have more than doubled in 10 years for the smaller houses.

That's another thing to look for. If you buy a "cheap" house now in a few years if it appreciates it's still affordable for the first time buyers. If you get an expensive house you're more limited in who can buy.

[Big Johnny69]

PS you guys know I was just kidding about being rich and buying them both, I went for the old one, lets see what happens. If I was rich I would have bought this site off dan and banned him

That is kind of funny....er, I mean, how dare you say that about Dan.

[Golfbum]

PS you guys know I was just kidding about being rich and buying them both, I went for the old one, lets see what happens. If I was rich I would have bought this site off dan and banned him

Rumour has it, (at least down here in South West Ontario) is buying Dan out is the only way you can beat him

Good Luck on the house purchase and god help the home owners beside you

["Richard"]

I will use their fence to chip over. They will see more white than green after I'm done

[Kilroy]

Rumour has it, (at least down here in South West Ontario) is buying Dan out is the only way you can beat him

He can't afford it I assure you.

["Richard"]

He can't afford it I assure you.

Oh dan, I assure you... I can buy your ottawa golf, toronto golf and montreal golf with the money in my checking account