For someone who espouses frugality, it seems hypocritical to say I would only purchase a new home. However, I think it's possible to save more money over the long haul by purchasing a new construction home rather than a resale. According to a recent article by CNNMoney, home building was up 37 percent compared to a year ago. Without a doubt, record-low interest rates is luring in reluctant home buyers. Also, the cost of rent is becoming downright outrageous where I live in Florida.
I have purchased two homes in my lifetime. Both of them were new construction homes. My mom purchased six homes in her lifetime, but only one was a new construction home. Her most recent home purchase was a short sale of a home that was only 6 years old. Thinking about the different home purchases made by myself, family members and friends, I'm left with the opinion that new conduction homes are a better investment.
Starting with a clean slate
I like the fact that I can start with a clean slate with a new construction home. With resale homes, a buyer typically has to re-do all the flooring, paint colors, cabinetry and other interior design features. With the homes I purchased, I could pick out my colors, floors, countertops and appliances. With my first purchase, which was a condo, I received free appliances as part of the negotiation process.
Being more green and energy-efficient
I found that the newer the home, the more likely the home has the latest green technology including energy-efficient appliances and appliances, more insulation and better windows. One of my friends who bought a new home told me she pays less than $50 for her electric bill during the hot Florida summer months.
Turning a house into a home
I love the fact that no one has lived in the house other than me. It's easier to turn a new construction house into a home. It's also fun to tour new home models, to pick out floor and countertops at the new home design centers as well as pick out a specific lot on which to build. New homes also come in new home subdivisions that are often beautiful with manicured grounds, jogging trails and all the modern clubhouses and coffee shops.
Spending little or no money on repairs
Although I lived in my condo for only two years, I never had to spend any money on repairs. Moreover, I was still able to sell my almost-new home after two years and make a profit. With my current home, I have rarely had to spend any money on repairs. I've know people who had to spend thousands of dollars to take out lead pipes, sewage systems or complete other repairs due to the age of their home. By buying a new home, I didn't have to go through the hassle and expense of renovations.
When we pay off our home in about 7 years, we will be living in a home that is only 15 years old. It's am amazing feeling to know we own a home outright that is not crumbling down around us. By the time we retire, our home may be more than 30 years old. Although I'm not sure if we will stay in our home during retirement, I do know we will only purchase a new construction home. It should be interesting to see what a new home features in the future.
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