It isn’t the Purchase Price, but the Cost of Ownership

Often when asked about home building vs. purchase and remodeling, I like to think about castles. In many parts of Europe, it’s possible to buy a real castle! And, often, these amazing structures and properties can be had for the price of a 25 year old American vinyl sided colonial! But, it isn’t the cost of the purchase that is the major hurdle, but the cost of fixing the property, rebuilding its infrastructure, bringing it up to current codes, and, then after all that, the annual maintenance of a building built, well, like a castle. So, this is true also of many homes- the purchase price is reasonable, but the cost of making the home your own, conforming with current codes, and, then, maintaining it can  often be daunting. I try to see if the changes a specific purchaser wants to make are major or minor, if the home was well made in the first place, and how far off current codes we really are to begin with. Some homes are worth the update no matter what, and some really aren’t. Some buyers are into that kind of project, and some aren’t. It’s a balance. Hoepfully, though, when you’re done, you’ll have your own “castle”- http://www.bloomberg.com/news/2014-11-05/crumbling-castles-haunt-east-germany-25-years-after-wall.html