older house big lot or newer house small lot?
Question:
For about the same price, do you favor an older house (e.g., 30+ years old) with a big lot (e.g., 1.0 acre) or a newer house (e.g., 10+ years old) with a small lot (e.g., 0.3 acre), assuming the older house is in a reasonably good shape?
Response:
> For about the same price, do you favor an older house (e.g., 30+ years old) > with a big lot (e.g., 1.0 acre) or a newer house (e.g., 10+ years old) with > a small lot (e.g., 0.3 acre), assuming the older house is in a reasonably > good shape?
Depends on overall location and what has gone into the house in terms of floors, cabinets, HVAC, windows, etc. 10+ year old homes may be getting to some major repair bills, if they were not cared for well… st
Response:
> Depends on overall location and what has gone into the house in terms of > floors, cabinets, HVAC, windows, etc. 10+ year old homes may be getting to > some major repair bills, if they were not cared for well…
The location is in central NJ (Princeton Junction area). The schools and neighborhood are pretty good. The newer hosues are bigger and look much better than the older ones. I am just looking now, so mostly looking and reading from the pictures and descriptions posted on the www.realtor.com.
Response:
>The location is in central NJ (Princeton Junction area). The schools and >neighborhood are pretty good. The newer hosues are bigger and look much >better than the older ones. I am just looking now, so mostly looking and >reading from the pictures and descriptions posted on the www.realtor.com.
What is land worth in your area? Is land a significant portion of the value of the house? Are the new houses being built in the same area as the old houses? If land is a significant percentage of the cost of a house and the new houses are being built in the same area then it makes sense to buy the house with more land unless your preference is otherwise. Dimitri
Response:
Well, I’m in the process of trying to find land for a new house. In the area I’m looking, I might have to resort to purchasing a plot of land with an old house to knock down to build my new house. 
Really, undeveloped building lots are so expensive (in some cases nearly twice as much as good lots with existing older homes), I might come out ahead buying an existing house that’s in bad shape but has a good plot of land attached, and then ripping out the existing home and starting fresh. -Dave — On linuxfreemail dot com, I am user "spamfilter".
– Hide quoted text — Show quoted text -> For about the same price, do you favor an older house (e.g., 30+ years old) > with a big lot (e.g., 1.0 acre) or a newer house (e.g., 10+ years old) with > a small lot (e.g., 0.3 acre), assuming the older house is in a reasonably > good shape?
Response:
I will take the LAND any day….. However it really makes no difference if you are comparing a 0.3 acre lot against a 1.0 acre lot…they are both small… I have a full acre and have completely outgrown it… Brother owns 10 acres and honestly that is too much…. Just my opinion…. Bob Griffiths – Hide quoted text — Show quoted text – > For about the same price, do you favor an older house (e.g., 30+ years old) > with a big lot (e.g., 1.0 acre) or a newer house (e.g., 10+ years old) with > a small lot (e.g., 0.3 acre), assuming the older house is in a reasonably > good shape?
Response:
Another thing to remember is that unless you’re dealing with extremely scarce land situations or natural amenities (view, lake, cliff , etc) there is a certain ratio of land to house cost that you need to keep in mind. That is usually for new construction but it may be helpful in your case; For example you would not put a $200K home on a $100K lot… I.e. think of the relative value of the house versus the land it is on. st
Response:
>… For example you would not put a $200K home on a $100K lot…
Yeah, *typically* you’d put about a $500k or $400k house on a $100k lot. The ratio is referred to as the "land building ratio" and is a common consideration in appraisal. But that said, what is "typical" can vary widely from area to area. For example in a rural area with cheap land, the ratio might be 8:1 as folks build large homes on inexpensive lots. But on a popular lakefront or oceanfront people might end up only at 2:1 or 3:1 because it costs so very much to but the scarce land. But in interchangeable suburbs around the US, the ratio will also tend to be pretty interchangeable IMHO. -v.
Response:
>For about the same price, do you favor an older house (e.g., 30+ years old) >with a big lot (e.g., 1.0 acre) or a newer house (e.g., 10+ years old) with >a small lot (e.g., 0.3 acre), assuming the older house is in a reasonably >good shape?
Me personally or what you personally should do? What use do you have for land? In some of these upscale retirement communities in FL, etc. land seems to be viewed as a liability, something to pay the gardener to keep up, the people never go outside their screened in pool. The only people actually in the yard are the gardeners. My father in law goes out in his yard maybe once a week to check the gardeners’ work and seems to view his 1/4 acre as ample. But if you live in a temperate climate and want the kids to be able to play in their own yard…… I take neither of the choices given, presently have 12 acres here at the house. Could use more but then we ride dirtbikes and snowmobiles at our house, and have a shooting range…. So I like the neighbor houses to be at least 500 feet away. -v.
Response:
>>… For example you would not put a $200K home on a $100K lot… >Yeah, *typically* you’d put about a $500k or $400k house on a $100k >lot. The ratio is referred to as the "land building ratio" and is a >common consideration in appraisal. But that said, what is "typical" >can vary widely from area to area.
In many areas of California, the ratio is about 2:1 for new construction and much lower for existing construction. In fact, my current house’s property is worth more than the house itself. This is typical. Dimitri
Response:
: Well, I’m in the process of trying to find land for a new house. In the : area I’m looking, I might have to resort to purchasing a plot of land with : an old house to knock down to build my new house. Really, undeveloped : building lots are so expensive (in some cases nearly twice as much as good : lots with existing older homes), I might come out ahead buying an existing : house that’s in bad shape but has a good plot of land attached, and then : ripping out the existing home and starting fresh. -Dave : — Be sure to checkout all the local quirks in the law. I’ve seen some cases where you were better off tearing down all but one wall and then remodleing that wall into a complete house rather than tearing down the entire house. John Eaton
Response:
Thanks for the heads up! -Dave — On linuxfreemail dot com, I am user "spamfilter". – Hide quoted text — Show quoted text – > : — > Be sure to checkout all the local quirks in the law. I’ve seen some cases where > you were better off tearing down all but one wall and then remodleing that wall > into a complete house rather than tearing down the entire house. > John Eaton
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