Older homes might be cheaper to buy, but they will cost more in the long-run when purchasing real estate in Brea, California, According to an article from realtormag.realtor.org., home buyers can purchase new, bigger homes and actually save some cash.
A study from the National Association of Home Builders (NAHB) looked at various home owner costs in relation to the age of a home. The study found that pre-1960 houses cost $564 to maintain per year, while homes built after 2008 cost an average of only $241 to maintain. Operating costs are approximately 5% of a pre-1960s home’s value, whereas operating costs account for less than 3% of the value of a post-2008 house.
The study went further, looking at first-year, after-tax home owner costs including mortgage payments, purchase price, annual operating costs and income tax. The NAHB found that home buyers can pay 23% more for a new home and still pay the same first-year costs as they would for a cheaper, pre-1960 house.
Rick Judson, NAHB Chairman, said, “Home buyers need to look beyond the initial sales price when considering whether to buy new construction or an existing home.”
Because of their higher price, newer houses may have higher mortgage payments, but operating costs will make up for the difference of an older, cheaper home’s lower price and lower mortgage payments.
There are many great reasons to consider Brea real estate. Please contact me to learn more about homes available in Brea.