With the house market in full recovery, and home inventory tightening
up nationwide, you as a home buyer have a very significant choice to
make when deciding the type of home that you would like to buy.
Location is always important, and price is normally a deciding factor,
but there is one other huge consideration you should make when
purchasing your home – choosing to buy a new home vs. buying an existing
home. Below are 10 reasons to buy a new home vs. an existing one.
1. Tax Benefits: Each month as a renter, you spend
about the same amount of money as a mortgage and get none of the
benefits while your landlord pockets your rent, increases equity, and
writes of property tax costs. As an owner of a new home, you will
receive all of the tax benefits of owning your own home PLUS, if you
have savings from a retirement IRA account, you can pull out $10,000
from this account – tax free – as long as the money is used for a down
payment on your home, and you are a first time home buyer.
2. New Home Warranty: Buying a new home vs. buying
an existing home gets you brand new everything – windows, doors, paint
job, carpet, appliances, and all of your lighting and trim. When you
buy an existing home, you may have the unwanted chore of constantly
replacing worn out parts of your home. Also, your new home comes with a
1, 2, 5 warranty per Louisiana law which protects the home in its
entirety the 1st year, all major structural components for 2 years, and
framing and infrastructure for 5 years.
3. Repairs and Maintenance: In addition to replacing
components, existing homes come built-in with a honey-do list. You
could be repainting the interior and exterior, upgrading / renovating
the kitchen cabinets and countertops, and replacing door knobs, hinges,
and other pieces and parts of the home. With a new home, you don’t even
have to worry about things falling apart for a few years at least if
you have purchased a quality-built home in St. Tammany Parish.
4. Energy Efficiency: Green building has become
standard for many home builders in St. Tammany Parish, and Ron Lee Homes
is a Certified Green Builder by the National Association of Home
Builders. By installing all green building features, you will not only
get the benefit of owning a brand new home, but you will save money in
the long run with lower energy bill as well as the environmental
satisfaction of reducing greenhouse gases. With previously owned homes,
especially homes older than 1980, you will be dealing with less
efficient home openings, insulation, and HVAC systems which will
increase the cost of heating and cooling your home.
5. Smarter, Safer, Well-Built: New systems installed
in new homes now come with smarter and better working fire alarms,
security systems, and smoke detectors. There is even certain types of
primer boards, plywood, and sheetrock that is fire resistant to
withstand a fire event.
6. Credit and Financing: Buying a new home allows
your mortgage company, lender, or banker more options in choosing the
right loan for you. Especially if you are investing wisely, your home
may appraise for a higher amount allowing more equity and better
interest rates.
7. Low Interest Rates: With all of the worry that
the Fed is about to increase interest rates, rates are historically low
and are still at record-breaking lows compared to any previous year of
buying a new home. Because you get to write the interest off on your
taxes, it is a win-win situation when buying a new home.
8. Holding Its Value: Because you are buying new
instead of previously owned, your home is in better shape and will last
longer as long as you chose the right builder. No matter how wonderful a
previously owned home is, it will still “fall apart” eventually faster
than a new home because it is older and more worn out.
9. Avoiding Health Risks: With the new information
about lead paint and its effects as well as asbestos, many people are
very aware that older construction can contain these hazards. As long
as you have hired a quality builder to build your new home, you will
never have to worry about hazardous construction materials that could
drastically affect your health.
10. Fun Choices: When building a new home, you get
to put part of your personality into it by making selections such as
cabinetry, countertops, paint, siding, flooring and much more. In
addition to being a part of building your own home, you can take comfort
in knowing that you are making the biggest financial investment of your
life – one that will give you equity and security for the future.
If you are ready to build your new home in St. Tammany Parish,
Contact Ron Lee Homes, a custom home builder, at 985-626-7619 or E-mail
Info@RonLeeHomes.com.
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When the bottom dropped out of the real estate market, the biggest
indicator that the economy was in trouble was that home owners and new
home buyers found themselves paying more for their home than what it was
worth. One of the biggest indicators that the housing economy has been
in recovery has been the increase in house pricing regionally
nationwide. These home prices went up steadily during the end of 2013
and 2014, so much so, that investors were concerned that they would
cause a housing bubble and throw the entire economy back into a Recession.
Once again, though, supply and demand allowed for free market commerce
to dictate the real estate market, and prices started to stabilize in
the 1st quarter of 2015.
