Can New Construction Be Financially Smart In Today's Housing Market? 3 Things To Consider
Posted on: 24 January 2022
If you are thinking about purchasing another home, you may be focusing on the existing housing market instead of considering the potential benefits of a newly constructed home. Many homebuyers today do this because of concerns that the costs of building a new home could be unaffordable for their home buying situation.
Before limiting your housing options to existing homes, it is important to explore the potential financial benefits that could be available by opting to consider new construction, such as those discussed below.
Potential savings on utilities
The initial purchase price of the home is only one of the financial components involved in buying a home. An equally important aspect is the cost that the homeowner will be charged to heat, cool, and supply electrical power to their home for each month of their ownership. A newly constructed home that is built using highly efficient building materials, designs, and systems is likely to have significantly lower monthly utility bills than a comparably sized home that was built before the housing industry began to recognize the benefits of more efficient construction.
Fewer repair and maintenance costs
Another way in which a newly constructed home can offer financial benefits beyond those found in most existing homes is the need for far fewer repair and maintenance costs. Newly constructed homes, especially those that are custom built to meet the housing goals of the buyer, typically should not need major repair or maintenance work for several years.
In contrast, an existing home may need several thousand dollars worth of cosmetic or structural repairs or maintenance to make the home fit the needs of the family that will live in it after the purchase. Since most builders offer a warranty on new construction homes, any issues that might arise are likely to be covered under the builder's warranty plan.
Enhanced resale value and tax incentives
In most states, homeowners are charged property taxes based on the value of their home during the previous year. By opting to purchase a new construction home, these homeowners typically save hundreds or thousands of dollars because they owe no property taxes during their entire first year of ownership. New construction homes also hold their value better than older homes and are popular on the resale market when the original owner decides to sell.
To learn more about the many advantages of buying a newly constructed home, instead of an existing one, take time to meet with a reputable contractor who specializes in new residential construction in your area.
For more information on new construction, contact a company like Fahey Built Construction.Share