Remodeling is harder and often more expensive, but if the building you start with has old-world charm and class, that can't be reproduced today, when you finish remodeling and upgrading, you have something of enduring value.

When you throw up a new house, you are getting a crackerbox that will start to deteriorate almost as soon as you move in. Modern building materials don't last. They are as cheap and shoddy as the sellers can make them, and still manage to sell them at their inflated prices. Their plus is that they are easy to work with. A sheet of pressboard is a lot easier to put up on a wall then tongue-and-groove, for example. But if it gets wet, it falls apart -- if tongue-and-groove gets wet, it just gets wet.

If the building you start with is crap, tear it down. No loss to anyone. If it has windows, doors, moldings, ceiling heights, bannisters, floors that are beautiful, but that you can't economically reproduce today, then consider renovating it. But bear in mind, renovation is never easier.

The stability of the foundation, and the state of the roof. The age of the plumbing and electrical system.