Does A Brand New Home Provide Value For Money?
It’s no secret that buying a home is the biggest financial decision of your life. If you’re lucky, you have enough money to buy the house right away. Still, this means departing with hundreds of thousands of dollars all in one go! For most of us, it’s a case of paying a mortgage for decades. You tie yourself into a tough financial commitment, so you need to make the right decisions when buying your home.
You have two main options: buy a ‘used’ home, or buy a brand new one. Used homes have been lived in by other people, so they can be old, outdated, and full of little problems you’ll have to fix. They also tend to be cheaper than the brand new homes in the same area. While these houses are shiny and new, they can be very expensive. Still, they provide some additional benefits that make them a more attractive offer than older homes. This begs the question: does a brand new home offer good value for money?
Save money on repairs/improvements
With a new house, you don’t have to splash the cash on any repairs at all. Everything is brand new, so it should last a long time. Therefore, your home repairs bill will be almost non-existent for many years. Comparatively, an older home might need repairs right away or a few months down the line. So, while it has a lower asking price, you pay more money maintaining the property. Plus, you might not need to make any home improvements on your brand new house for decades, which further adds to the value.
Get more for your money
In most instances, new home builders will provide you with a set of home inclusions. Now, the standard home inclusions tend to consist of things like free customer service/repairs for a year or two, designer kitchen installations, and so on. These things are often included in your house for free – you don’t have to pay extra to get them. Thus, you technically get more bang for your buck. You can buy a new house and get a designer kitchen fitted without needing to pay for it. With used homes, you don’t get any extras or bonuses. If you buy a house and something goes wrong within a year, the real estate agents aren’t going to provide a free service to fix it. With new-builds, the builders can set you up with companies free-of-charge.
More value in the future
People think that older homes provide better value in terms of your return-on-investment. So, when you sell the house, you can fetch more money if it is old and outdated. The theory is that it gives you more room to make improvements. While this can be true if you want to sell the house within a year, it doesn’t resonate if you’re looking at the bigger picture. In 20 years, a new-build will be worth more than an older house. It’s got a more modern design, it will be in better shape, so it could be a more worthwhile investment from this standpoint.
Overall, new-builds do offer great value for money. Yes, they can be costly, but think about all of the benefits listed above. Provided you can afford one without ending up in a debt spiral, it could be an excellent decision for your family.