That is a great question. As has already been mentioned, it is very difficult to predict the future. I would say that the great thing about an older house that needs a little work is that if you can put a little sweat equity into it doing minor updates, you may be able to do just those one or two extra things that aren't available in the newer homes that gives your home added charm or interest from buyers down the road. You'll find that the newer construction homes in a neighborhood usually have almost the exact same amenities. When they are competing against each other in resale, it is difficult for one to stand out against the other. Check with a realtor also to see what are the most common characteristics for a home in the price range of the home you're considering... Check your budget and see if there are things that are missing that you could add to differentiate your home without over-remodeling. A realtor should also be able to help you identify some of those projects too, but as a general rule, as I'm sure you know, bathrooms and kitchens are of utmost importance in being updated. However, you don't necessarily have to spend $10k+ for kitchen or bathroom projects. There are tons of things that can be done to add impact for lower costs. In the end, today's buyers are looking to buy the most move in ready home for them for the best value. In 3-5 years, I'm sure that will still be the plan of buyers. If your home can meet specifics of their criteria that others can't, you have a better opportunity at resale. I would only do projects like that on a newer home if you bought it significantly, and I mean significantly, under market value. Otherwise, buyers will likely want to buy your home, but will want to buy it for the same price as the other homes in that subdivision (without those added items or consideration to what you invested.) Either way you go, buying at a good value will be the recipe to protect your investment in the future.