If you're buying a home for the first time, it's usually best to go the cheaper route and buy an existing home. You'll save money and gain some experience as a homeowner before taking on the challenge of building a new home. It will also give you time to accumulate equity (the value of your home minus what you owe for it). Although initial construction costs may be higher, it may be easier to recover the investment.
You can make more significant profits by reselling your new home. A newer home is usually more attractive than an older home to most people, Burtt adds. In addition, a new home will require fewer repairs and less maintenance, which can save money and time. And, as Burtt points out, you'll have a warranty for a new home, so even if something goes wrong, you may still have coverage.
When looking for a new place to live, the first question you ask will help you make the rest of your decision. Should you rent or buy? Buying may seem attractive because it will put an end to the increase in rents and may generate capital. However, the reality of routine home maintenance and repairs can quickly drain a bank account.
