What Are the Long Term vs Short Term Costs of New Construction Homes?
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One of the best ways to get exactly what you want in a home is to buy a newly built home. Since you can choose everything from carpet to ceiling fans, your new home will reflect your unique tastes from the moment you move in. When choosing a new home, though, it’s important to consider the costs of that decision, specifically how those costs can change over time. To help you make a wise investment, here are some insights into the long-term versus the short-term costs of new-construction homes.
Higher Up-Front Price
Typically, a new-build home is going to cost more than a pre-existing home. This is largely because the cost of a new home includes the cost of the labor to build the home. After all, the skilled contractors who pour the foundation, run the wires, and paint the walls need to put food on their tables. The good news is that the prices of new homes are often negotiable, meaning you can still get a great deal on the home of your dreams.
Homeowner’s insurance is a long-term cost that must be factored into the decision to purchase any home. Since a new home would be more expensive to replace than a pre-existing home, this aspect of your homeowner’s insurance could be more expensive. However, thanks to the improved safety and code-compliance of new homes, your homeowner’s insurance could actually end up lower than it would in an older home. Lower homeowner’s insurance costs will save you money in the long-term because this is a responsibility that never goes away.
Often, one of the most expensive aspects of moving into a pre-existing home is all the renovations that have to take place. In order to match your tastes, you may end up spending tens of thousands of dollars to undo what the previous homeowners had in place. New construction homes, on the other hand, require no renovations since they’re constructed and decorated to your specifications. This lowers your short-term costs and can potentially lower your long-term costs since the new materials will last longer, putting off replacement for several years.
Another advantage of a new home is that all the appliances in the home are new. This means that expensive components such as your water heater and HVAC system are unlikely to break down or need a replacement for a long time to come. Given the high cost of these appliances, buying a new home could potentially save you a lot of money. Plus, these new appliances are likely more efficient than anything you’d find in a pre-existing home, which can help save money on your monthly utility costs.
Before you commit to buying a home, it’s important to work through the costs of buying and owning that home to ensure you can afford it. For extra assistance, it’s good to talk with a loan professional at your bank so that they can walk you through what it will take to be a successful homeowner on firm financial footing. With this information in hand, you will be ready to own a beautiful new home and still have money to enjoy other important things in your life.
Meghan Belnap is a freelance writer who enjoys spending time with her family. She loves being in the outdoors and exploring new opportunities whenever they arise. Meghan finds happiness in researching new topics that help to expand her horizons. You can often find her buried in a good book or out looking for an adventure. You can connect with her on Facebook right here and Twitter right here.
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