Why Buy New? Why Buy Now?
It’s the age old question: Why buy a new home? People have been asking themselves this question since time immemorial. As a homebuilder, I have a vested interest in that question being answered in the positive. Below, I have done my best to strengthen the case to buy a new home so that you may gather enough information to make the right decision for you and your family (buy or not to buy). Some of these may seem redundant only because they are important reasons to buy NOW.
Why Buy a NEW home?
- Mortgage is better than rent- Mortgage reduction builds equity which increases your net worth. A house is an asset that appreciates over time. This fact has a direct impact on reason number 2 below.
- Re-sale value and increased net worth- In this day and age of a volatile stock market, social security concerns, decreased employer retirement benefits, owning a home is a great thing to do for your retirement.
- Tax breaks- The ability to take mortgage interest as a deduction on your tax return is a great way to save some money.
- Less maintenance- Owning a new home reduces the amount of money that you need to put into an older home for repairs, upkeep, and updates. New HVAC systems, roofs, water heaters, re-modeling are expensive in this day and age and can tap into emergency savings quicker than expected.
- Energy Efficiency
- Freedom- your home is your home, decorate as you wish.
- Stability- create roots and relationships in the community.
Why Buy Now?
- Now is the time to buy. The old adage in real estate rings true: “The house you see today and go home and think about is the house that someone saw yesterday and went home and thought about and buys today”
- Interest rates are low. The availability of “free” money is not going to last forever. A healthy economy will have higher interest rates and all signs are pointing to them increasing in the foreseeable future. To properly follow inflation rates and support a positively functioning economy, interest rates have to tick upward, meaning we’re likely going to see an increase of as much as a full percentage point by the end of the year. On Dec. 14, the Federal Reserve increased interest rates by 25 basis points, with expectations to increase rates three more times by the end of 2017. Recent memory is filled with near-historically low interest rates, so any increase may seem like a big deal.
- Buy before prices increase- Home prices are increasing (new and re-sale) as demand for homes increases. Labor shortages to build new homes and materials for homes continue to increase. The industry offsets these costs by raising home prices.
- Savings with less maintenance equals affordability.
- Best time to sell your current home and get top dollar.