Slicker than a Yes album. | I went through this in 2006. After mulling things over, I decided I wanted to keep the old house, but update it. Bad basement, but solid in the beams. Couldn't get the size I wanted for my budget. I had most pro things hired, did the easy demo and insulation myself (with lots of help from family!)
New vs Old boils down to a few things. Are you attached to the old house? Do you think you will find a rat's nest when you get down to studs or is it very solid. You've got to prepare for the worst (in terms of major reconstruction, cut joists, rot, etc) but if you think everything is solid and your general contractor is up to the job go for it!
There is a lot more to it, but if you consult home builders/remodelers you can get a lot of your questions answered before you tear into it. And asking on here helps too!
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