When it is time to find your dream home in Brooklyn, you have two options. You can buy a new home or get one used. There are benefits and disadvantages to both choices and you need to carefully consider these before making your final decision. The primary advantage to purchasing a new home is the fact that it will require very little maintenance for at least the first few years you live there. Everything is still under warranty. So if something does break, you have recourse to get the item fixed for little to no money out of pocket which is great for people pinching pennies in this slow economy.The biggest disadvantage of buying a new home is they are typically more expensive than a used home. In addition to that, builders are competing against the influx of cheap foreclosed homes in the area. In Brooklyn, one out of every 1923 homes are currently in a foreclosed status. This means that it could take longer for your new home to build any equity because home values are being dragged down by their foreclosed brethren. If you find your dream home in Brooklyn and it’s new, you may have to hold onto it for five years or more before you see any gains in equity.
On the other hand, used homes are more likely to rebound quickly, especially if you purchase a foreclosed property, due to the maturity of the surrounding community. Typically, banks only want what is owed on the home. If you find a good deal where the value of the home is more than what is owed, the equity gain is immediate. You can take out a loan for the full value of the home and use the additional money to fix it up the way you want it. So even though you may not find your dream home in Brooklyn, you can certainly get a used home and turn it into the home you want.
The biggest disadvantage to buying a used home is safety. According to statistics, a used home is seven more times likely to catch on fire than a new home. Realistically, you don’t know how well the previous owners took care of the home you are thinking about purchasing. Therefore, it is important when you find your dream home in Brooklyn that you have the house thoroughly inspected by a professional to prevent unpleasant surprises from popping up at a later date.