When you decide to buy a home, there’s more to consider than just where you’re going to live. Real estate of any kind is an investment that grows over time, but as we all know, some investments pay better dividends than others. At Lowder New Homes, with more than six decades of experience in our field, we can attest that overall, a new construction home can be a better long-term investment than an older or previously existing home. Let’s look at a few important reasons why.
Every home was a new construction at some point. Unfortunately, time and Mother Nature both take their toll, so the longer a home stands, the more maintenance and upkeep is required to keep it functional — and that’s money out of your pocket. When you buy a new construction, you’re effectively setting the clock to zero — you have a fresh start where everything is new and nothing needs to be replaced. It will be a long time before your home starts to need the same upkeep as if you bought a similar home that was built, say, 50 years ago. That’s money you get to keep for a while, adding up to more value for the dollar.
The best time to make a home fully energy efficient is when you are building it — in fact, newer homes are all subject to newer codes requiring a minimum level of efficiency. You can retrofit an older home with energy-efficient features, but that requires an additional investment, and it still won’t match the efficiency that a new construction home has. The bottom line? Your energy bills will be lower in a new home, again keeping more money in your pocket.
Better Return on Investment
Realtors refer to older homes respectfully as having “character” and “charm” — and we’re not saying they don’t — but the numbers show that new homes are more popular with the public than older homes. An eye-opening survey from Trulia in 2014 indicated that people prefer new homes over existing homes by a margin of 2 to 1. For you as a homeowner/investor, that means if you take care of your home, you’ll have an easier time selling it for a decent price than a homeowner selling an older home on the basis of “character.” Furthermore, if you decide to rent, you’ll find renters willing to pay higher rates for the modern conveniences your home offers.
When considered together, these advantages add up to lower costs now and higher rates of return later — all signs that a new construction home makes an excellent long-term investment. If you’re looking for a new home in the Montgomery, Alabama area, Lowder New Homes is known for its commitment to quality and craftsmanship, and we build in some of the best neighborhoods in town. To learn more, call us at 334-270-6789.