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Two acres plus a house? Think well over $500,000 if you can find that property.
The answer to your question is that there is no answer.
You want to move? Move. The numbers can be twisted any which way you want to get the answer you want. Postponing/upgrading a roof or an HVAC system can swing the numbers however you want them to go. Ditto insulation, windows, kitchen/bath remodel.
YOU have to live there. What do YOU want to do?
At this point, nothing. Just asking a question. Is it better to spend $3300 a month on a newer, presumably less maintenance home, or spend $2300 a month + $1000 maintenance cost on an older house?
I asked in the real estate forum, as I thought maybe there was a formula or calculator that makes certain assumptions about the average maintenance cost by decade of the home build. Example: 80's homes typically cost 2% of the homes value per year to maintain, vs 1910's homes are 5% of the homes value per year on maintenance.
Also, when I did my first time homebuyers class when I bought my 1st home (approximately 14 years ago), there was a chart that showed something like this. Older homes needing 5% of the homes value to upkeep ($250k x 5% = $12,500 or about what I'm seeing) and newer homes needing 1-2% annually ($400k x 1.5% = $6,000). I just can't recall what the source was for this. But in this scenario, a more expensive newer house could make financial sense, especially considering there's also less stress and surprises.
What drew you to such a money pit that you can't afford in the first place? Are you handy? Were you going to flip it? Is it near work, or where you grew up? Really good schools?
A 1980s house that hasn't been kept up with is going to have you doing all those same repairs all over again.
What drew you to such a money pit that you can't afford in the first place? Are you handy? Were you going to flip it? Is it near work, or where you grew up? Really good schools?
A 1980s house that hasn't been kept up with is going to have you doing all those same repairs all over again.
Affordability or being "drawn" to a money pit is not the issue. I don't have a crystal ball. You don't always know what you're going to find when you buy a house, even with the best assessment. No plans to flip, as no one could have predicted this market either. I am a reasonably handy DIY'er, but roofing and working on trim/masonry in 2nd floor areas is not my forte. I am comfortable with electrical and some plumbing, light carpentry.
Work and schools are not important in the decision for us.
Last edited by VintageSunlight; 06-01-2022 at 10:14 AM..
I don't think there really is a good answer for you. We moved from a 1965 home to a house built in 2000, 8 years ago. In that 8 years we have had to replace the HW heater, had a roof leak, we have about 4 windows that have "failed" and the glass needs to be replaced. We are up for a new driveway since the old one has multiple cracks and low spots in it. We replaced the deck since the one the prior owner paid a relative to do was done improperly (sagged) and not to code...I could go on but I think you get my point. We mainly moved for more space which is what we got. I wasn't under any illusion that this house would cost me any less to maintain than the one we lived in prior that was built in 65.
Money wise it's a wash. Why do you need a 30 year mortgage? Aren't you getting a lot of equity out of selling your old house that you can put down on the new one?. It all boils down to which house you are more comfortable living in.
With a house built in the 80's be prepared to replace your hvac, water heater, deck at some point. But the most important question is where you would prefer to live.
One general contractor joked to me "we call them "new fixers"." Um, it's a crap shoot with "new" homes. I would not turn an emotional decision like a house into a calculation. The only calculation is if property taxes are so high that forces you to sell. You're a day late and a couple dollars short as this is not a trade up market.
I'm having a debate with my wife over whether to stay in our older house which constantly needs work, but is cheap otherwise, or move to a newer house which will cost us more, for longer, but less things will have problems.
The bold is an assumption and a massive oversimplification. You couldn't give me a new house or one built even in the last 30 years. New construction is crap, IMHO.
I appreciate the answer. Other than paint, at least much of the money went toward upgrades. I have no idea when I will be able to upgrade anything. Everything here is just fixes and maintenance items.
What do people do to come up with $45k in 3 years? Heloc's?
My last house built in 1953 actually had drywall, a new roof and brand new siding when I bought it. I did absolutely nothing to that house. It would cost me $75k to do that here.
I think if I were you and I liked where I lived, I'd list the things you hate most, and what it would cost to redo them in a way that will bring them close to modern efficiency/something that will last for 20 years.
You already mentioned them: HVAC, Roof, Windows, Siding. Figure out what each project individually will cost and try and save for ONE of them, whichever will bring you most happiness and peace, wash/rinse/repeat.
If it were me I'd start with the HVAC followed by the Siding followed by the roof, unless any one thing is decrepit enough to be in critical shape.
The bold is an assumption and a massive oversimplification. You couldn't give me a new house or one built even in the last 30 years. New construction is crap, IMHO.
I bought a house from a national builder in 2003,the only defect I can blame the builder is minor electric wiring in my bedroom which cost me $80 to repair.,7 years later.
How many homeowners can say that?
My last house was built in 1927 and I did a number of upgrades to it in the 16 years I had it (new roof, foundation work, HVAC, new HWH), but I didn't spend anywhere near $12K a year on routine maintenance. Mine didn't have plaster walls, but Homasote, the precursor to drywall. The 1959 house I currently have does have all plaster walls, but I don't have many problems with them. There are some recurring cracks but I just ignore them; they go away when the radiators come on. If I were in your shoes and had a 1.75% mortgage, I'd stay in place and do the fixes. But that's me; I'm an old house lover.
This is me too. I would consider the old Craftsman house worth the extra trouble. Have you tried to do any weatherizing? If it needs a new roof and you put on a high quality roof, you should not have to revisit that for a long time.
If you are handy, you might be able to tighten up the existing windows rather than rip them out and put in new windows, for example.
Most older homes are amenable to using a wood stove for heat in winter. That's what I do.
Final thought: The old Russian aphorism "Better the Devil you know" (than one you don't). I'd stay put myself in your situation.
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