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Answers (7)
- Team Camden & Redden, "piedmontgroup"
- Contributions:6
There a lot of factors that come into play when analyzing a property. Its just not a simple old vs. new comparison. The main thing you want to take into consideration is the location. The old adage location, location, location is around for a reason. In real estate that is the biggest driving factor.
Also, I would take in consideration how many updates does the older one have compared to the newer construction. I would also check the status of each properties HOA. There have been alot of HOA's that have gone under recently and in the past few years. Which have left the homeowners in a bind. Be sure to make sure there is no pending assessments with either one, if there is make sure the sellers pay them, so you are not stuck with the bill.
Old or new each can have its benefits. If you are truely comparing apples to apples then I would consider which hits your pocketbook less. However, I would like to note that in my experience on the resale side, buyers tend to lean to a newer property because of less worries that something could need repairs in the house.
Also, I would take in consideration how many updates does the older one have compared to the newer construction. I would also check the status of each properties HOA. There have been alot of HOA's that have gone under recently and in the past few years. Which have left the homeowners in a bind. Be sure to make sure there is no pending assessments with either one, if there is make sure the sellers pay them, so you are not stuck with the bill.
Old or new each can have its benefits. If you are truely comparing apples to apples then I would consider which hits your pocketbook less. However, I would like to note that in my experience on the resale side, buyers tend to lean to a newer property because of less worries that something could need repairs in the house.
- Sharon Lewis, "Sharon Lewis"
- Contributions:3916
You asked about old vs new.....it really depends on the area and how many townhomes are in that area. Townhomes can be great rental properties over the long term, depending on the HOA fees, location and other variables. I believe that Cary is a strong location to purchase and hold as an investment. You still get the benefit of being able to write off your mortgage payment and live in that townhome instead of paying rent, and when the time comes, perhaps you will be in a position to purchase something else and just sit with this particular investment. And lets not forget interest rates. Hopefully your interest rate is somewhere around the current 4'ish percent? There are some great townhomes out there, are you currently looking, feel free to call me. Thank you
- Jennifer Johnson, "JenniferSELLS.com"
- Contributions:40
Depends on the neighborhood. In addition to location, take the time to look at the quality of construction. Down the road a community built with cement siding is going to have lower HOA dues than one sided with composition hardboard. High HOA dues can create challenges selling down the road, and put stress on an association that doesn't have enough money to make repairs.
- Meg Russell, "GreenBrokerMeg"
- Contributions:16
If you buy now, or if you bought 10 years ago, the answer is yes, in good condition, you will still build equity. Remember that there was a bubble in 2006 so I would not have the same answer if you bought in 2006. Townhomes can be a great investment especially in the heavy rental market near NC State.
- Jennifer Johnson, "JenniferSELLS.com"
- Contributions:40
Depends upon location and condition. People love new, especially if that includes granite and hardwoods. But some of the new inventory is not in the more desirable location. Appreciation of neighborhoods in Cary/Apex varies greatly. Some subdivisions have appreciated, and others have lost value. Have your agent take a look at the specific neighborhoods you are considering, and determine the trends over the past year or two.
- Nathan Wolf, "natewolf"
- Contributions:1825
Location Location Location. Equity is based on the market. If the townhome is in a desireable location you will likely build equity.
- Pasadenan
- Contributions:21450
Yes, if you bought in 1999 and sold in 2006 or 2007
Yes if you accelerate your payments so that you don't owe anything on the property, but it doesn't mean you won't lose money on it.
But almost any town home you buy today will depreciate faster than you pay it off.
In North Carolina? don't expect any property to appreciate in value as quickly as the dollar declines in value. And don't forget to factor in "transaction costs"...
A better comparison would be "rent verses buy"; and then just making sure that your value won't depreciate too quickly which could leave you in the red, and really needs to also be factored into the "rent verse buy" comparison.
New verses old? Depends on:
1) deferred maintenance required
2) quality of materials
3) neighborhood demographics and demographic shift trends
4) typical depreciation of "new" items (the "take the new car off the lot syndrome")
5) energy efficiency
Yes if you accelerate your payments so that you don't owe anything on the property, but it doesn't mean you won't lose money on it.
But almost any town home you buy today will depreciate faster than you pay it off.
In North Carolina? don't expect any property to appreciate in value as quickly as the dollar declines in value. And don't forget to factor in "transaction costs"...
A better comparison would be "rent verses buy"; and then just making sure that your value won't depreciate too quickly which could leave you in the red, and really needs to also be factored into the "rent verse buy" comparison.
New verses old? Depends on:
1) deferred maintenance required
2) quality of materials
3) neighborhood demographics and demographic shift trends
4) typical depreciation of "new" items (the "take the new car off the lot syndrome")
5) energy efficiency
Can you build any equity with Townhomes?
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