One of the most important decisions when buying houses is choosing between a old home, or a new home. Generally a new home (as in home, sweet home) is one that has been built less than 10 years ago, it may be pre-owned or brand new just built, or even yet to be built. New homes can be more expensive than older homes, because older homes will probably require some repairs or home improvements. So you will either pay more for a newer home up front (with less expense for immediate repairs), or pay less initially for an older home - but you will have to budget for more expense in repairs and improvements in the near future. It does really work out to the same thing in the long run, you just have to be smart and include repair expenses in your home buying pricing budget.

While some people want a new home because they don't want to be bothered with repairs, often it becomes easier to buy an older home for less money up front - and then spend on repairs and upgrades over time. There is a saying "they don't build things like they used to" - which is very true in home construction. Older homes tend to be built much better, labor costs were lower in the old days, so builders would use better materials and spend more effort in building homes to last. Today with the growing costs of timber and other building materials, as well as higher labor costs, builders tend to take "shortcuts" in construction - both in sub-standard workmanship (to save labor costs) as well as lower grade materials. Most homes are constructed of wood (or have substantial wood content). In the past trees were allowed to grow to an older age which made that wood sturdy and long lasting. Today, trees are farmed like vegetables with quick cut down times, and young wood does not have the same strength or quality as aged wood.

While older home construction was considerably better in workmanship and materials, some construction materials have since been vastly improved. Water pipes and electrical wiring for example, are much sturdier and safer today. Older homes may have soft lead pipes and aluminium electrical wiring, both of which can give costly repair headaches (and safety issues). One of the "must do" home improvements on an old home is to upgrade both the plumbing and the electrical wiring, both for safety as well as for convenience. Newer plumbing (toilet and showers especially) are more water efficient, which will substantially reduce your water bill in the long run. Old pipes will eventually break or leak, which will be messy as well as expensive to deal with after the fact. Old electrical wiring and "fuses" may cause short circuits or deadly fires in your home, electrical wiring should always be upgraded on an old home for safety reasons. Remember, today's appliances are different from what they had back then, old wiring may not be able to handle the demands of the new and extra devices we use today (dishwashers, freezers, air conditioners, computers etc).

Another big problem with older homes is that they may not be energy efficient, especially in cold climates. Home heating bills are among the highest recurring expense for home owners. Older windows were simply not efficient, with single pane glass and drafty loose fitting frames. Newer homes usually have double pane insulated windows and draft free sealed frames. Older homes will require upgrades to their windows to avoid astronomical heating bills during winter (and cooling bills during summer). Exterior doors on older homes also suffered from the same draft problems. Newer doors have better door edge and door frame insulation, which eliminates drafts and energy waste. Older homes should also have their exterior doors replaced (or upgraded) to save money in the long run.

The roof is another big expense that may hit home (means a house, or an apartment unit in a building) owners. Newer homes have new roofs, but depending on the grade used by the builder, the roof may last only 10 years (or upto 30 years, if good quality roofing tiles were installed). Older homes will definitely need a new roof - unless you get lucky and find an old home to buy that just had a roof replaced. New roofs come in different price ranges, the cheapest last the shortest time (about 10 years) - and paying more will get a 30 year roof. While regulations vary by state and locality, you can generally "overcoat" a roof twice. This cheaper alternative to replacing the roof is to simply apply new roofing tiles on top of the old roof. Whenever your homes roof is replaced or re-tiled - you should also have your rain gutters checked out and replace them if necessary. Most damage to a roof comes from poor drainage on gutters. When rain (or snow) collects in the gutters without being drained, the water saturates the overhanging roof tiles. This causes water seepage and can cause the tile to warp or separate, which allows more water seepage that makes the problem worse. The roofing base will then warp and all the tiles will start to separate, causing leaks during rain and snow.

Most homes have interior walls that are made of sheetrock (also called drywall) that is mounted on the wood (or steel) wall frame. When you buy an older home, the walls may have dings, dents, holes, or may even be warped from age or abuse. Painting a bumpy warped wall will result in a painted bumpy warped wall. Very old homes (like from the 60's) may have sheetrock mounted with "drywall nails" not screws. These old nails do not secure like modern sheetrock screws and will slowly be pushed out over time as the wood expands and contracts with the seasons. These rising sheetrock nails make ugly bumps, and may even show rust spots. Additionally over the years many coats of paint may have been applied, resulting in an uneven wall surface. Newly built homes obviously will have smoother walls. If the walls and ceiling of an older home are in too bad a shape, plan on replacing the sheetrock as part of the home improvement. An important thing to remember if you decide to replace the sheetrock/drywall on an older house, always replace the plumbing and wiring if you open up the walls (if they are old). Otherwise you may end up doing the same thing again when the pipes or wires fail.

Driveway and sidewalk paving could also be a hidden expense. Older homes may have "blacktop" on the driveway (tar and gravel) which falls apart easily and is a nuisance to repair. Newer homes generally have concrete used for sidwalks, driveways and patios. Concrete does last for a long time - however, older concrete tends to be sturdier (another case of "they don't make things like they used to") and lasts even longer. Today's concrete tends to have poor quality, and will chip and crack easily - the materials are more expensive today than in the past, and builders tend to cut corners.

So in deciding wether to choose a newer home, or an older home to buy - be sure to take into account the repairs and home improvements that will be needed. Even with new homes, you may not like some part of the home (such as an extraneous wall for example) - and you may still have to spend on making some changes. Energy efficiency does pay off in the long run, and keep in mind that upgrades to windows and exterior doors will also increase the appraised value of your home.