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Many pros and cons to buying new or old
New homes take time to mature Older homes often need upgrading

Q: I am renting an apartment but, with interest rates so low, I have decided now is the time to buy a house.

Although I like the idea of buying a new home, it seems that a resale house offers better value because many of the improvements like fencing, deck and landscaping have already been done.

What are your thoughts on this?

A This question inevitably sparks a lively debate, with convincing points to be made on either side.

Often the decision boils down to one of personal choice, because there are distinct advantages and disadvantages to both new and resale homes.

One factor that's sometimes overlooked is appreciation/depreciation.

Every community goes through a cycle. A new home development begins as an area of new growth that expands as each subsequent phase is completed.

Houses appreciate as improvements are completed — such as roads, streetlights, entrance gates and parks — all of which make the neighbourhood more desirable.

Maturity is reached after about 15 or 20 years, when trees and landscaping reach their full potential. This maturity is one of the reasons buyers are drawn to a resale home.

At this stage, houses and neighbourhoods can begin to depreciate unless homeowners take certain measures.

Unless properly cared for, shrubs and foundation plantings become overgrown, lawns can deteriorate and driveways begin to show wear and tear.

At this point, certain items in the home begin to deteriorate. Shingles may need to be redone; windows may require attention and mechanical systems like furnaces and air conditioners can show signs of wear and tear.

Other items in the home might be in excellent condition but will be dated. Redecorating becomes necessary to keep up the value of the home.

With the rapid changes in technology, the constant flood of new products on the market and our desire for stylish homes, keeping a home current is more important than ever before.

Around this time, floor plans and features become obsolete as well. As lifestyles change, so do preferences in design.

A good example is the increasing popularity of great rooms, open-concept kitchens and soaring ceilings, rather than the defined areas for kitchen, dinette, living room and family room popular in the past. This is the stage when renovations are required to adapt outdated designs to current standards.

Buying during the maturation period of a neighbourhood before prices stabilize is a good indicator that your home will appreciate in value.

If you buy a house at the depreciation stage, take into consideration what updates have been done, the lifespan of components in the home and the cost of improvements necessary to keep the home current.

No matter which route you take, it's important to remember that a house is always a work in progress.

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