It’s not uncommon to stall on purchasing a new home. Buying a new home is expensive, and you can easily get hit with undisclosed issues that can suddenly cost you more. It’s understandable that some people hesitate. However, home ownership in the US is actually on the rise, with a 65% homeownership rate. If you would like to buy a place of your own, consider buying a new home instead of an existing one. Here are the reasons why:
- Fresh start
Owning a home is very different from being a tenant. Buying a house is a long and hard investment and one that is seen as positive step forward in life. In a USA Today article on personalizing your new home they noted how one of the biggest draws was the freedom to customize it without having to ask for permission from a landlord/lady. And with a new home you will have a blank canvas to start from. This will save you money as you won’t need to pull out anything the previous owner left.
- New homes are designed for modern living
Newer homes have the latest appliances and up-to-date specifications, making them more environmentally friendly than older homes. Modern plumbing, appliances, heating, and air conditioning will leave you with lower maintenance costs. New houses are also built in accordance with the latest building codes and safety regulations making them much safer to live in. For instance if you live in an area known for harsh winters, then a brand new home will be much better at insulating you against the cold, which will also reduce your energy bills.
- Financial security
Homeownership gives you a sense of stability and security. And if you are a first-time homebuyer, the IRS Publication 530 states you can deduct state and local real estate taxes. This is why owning a home, compared to renting one, is a much better foundation for wealth building. And once you pay your mortgage off you will be set up for later life. On top of that buying a new home rather than an existing one will save you money from having to do big repairs or work once you move in.
- Property appreciation
The house you buy should primarily be a home that you would like to live in for many years. But if you plan on selling the house after some years down the line, you should be more critical of the location. New homes are often built in suburbs with access to good schools, new commercial businesses, parks, and the city center. This will make reselling much easier, as will the fact that the new home is only a few years old.
- Potential to turn it into a real estate business
Purchasing a new home is a prime opportunity to start a real estate business. Austin is expected to be the nation’s hottest housing market, which makes Texas the perfect state to start building a property portfolio. Yet, if starting a real estate property portfolio in Texas there are things to be aware of. A ZenBusiness guide to forming an LLC in Texas notes that the state charges significantly higher filing fees than other states. This is on top of other fees that Texas might require from your business, such as the cost of specific licenses and permits or filing your annual report. You will need to balance this out with the revenue potential of investing in one of the country’s best housing markets. And if you do decide to start your own real estate business, then re-selling a brand new home will increase your chance of a quick turnaround.
Having your own house can help you live much more comfortably. For more information and tips on buying a new home, check our Buying a Home Archives.
Written exclusively by Gabrielle Wagner for preferredpropertiestx.com