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Home Building Insights
The Investment Value of A New Home - Issue No. 20

Similar to buying a car, there are two routes towards owning a home - its either you buy a new one or a used one. Buying a new home can offer many advantages:

Maintaining a New Home is Cheaper
Again, similar to a new car, a new home is cheaper to maintain because you expect to fully utilize the useful value of its components.

A New Home Fits your Current Lifestyle
Since it is a new one, you will have an influence into its final design. You can choose practically any layout or color that you would wish. All you have to do is tell your designer and builder the features that you would want to be incorporated into your home. The home can be custom made to your liking.

A New Home has features that Fit the Times
With the surge of high tech gadgets, piped in music, internet, computer in every room, security systems, etc, new homes may come in with all of these features. All of the wirings are built in and you may not see any exposed wires or extension cords around. If you buy a used home, it may cost you a lot of money to install all of these gadgets for you would have to fit in a new wiring system to accommodate your current technological needs.

Also, due to the changing family environment like double income households, new homes are easier to clean due to the nature of the materials being used.

New Homes are Made of New Materials
With the advancement of material science, most new homes use environmentally friendly materials. Asbestos roofing that was used in the 60's is no longer used today due to its effect on the environment and to the health of people. The steel drainage lines that were used in homes built 40 years ago are now replaced with the lighter and more practical PVC lines. Even cold water lines are now made of PVC these days.

If new homes have a certain magic into them, they also have a few disadvantages which make used homes attractive.

New Homes are More Expensive
The cost of building a home now is more than it was to build 30 years ago even if the cost comparison is adjusted for inflation. Just like a new car, you have to buy it full price. A used home depreciates due to wear and tear and can be more affordable.

New Homes are Built in New Communities
Since developers need vast tracts of land to develop multiple housing units, new homes are usually located in areas that are a little far from the center of town. These can be far from the basic infrastructures like schools, hospitals, shopping malls, etc. A few years from now, these "far" sites will become the prime locations.

There are however small developers that build homes in existing communities that are close to established schools and infrastructure. You may want to look at these properties.

New Homes may have High Association Dues
Some new communities, in order to maintain the security and exclusivity of the area, charge higher association dues for the upkeep of its community. Neighborhood associations of new subdivisions usually charge higher association dues than older subdivisions since there are fewer residents in the area.

Final Note
A new home offers many advantages but also has some disadvantages. If you have the financial muscle for a new one, then go for it. If not, then you may want to do it in increments - buy a vacant lot and build later. Whether it's new, used or abused, there is value into the property that only the future occupant can tell. Always remember that in buying a home, make sure that you know what you want, what you need and what you can afford.



Previous issues :

1 The Process of House Construction
2 Selecting a Site for Your Home
3 Various Lot Contours to Build On
4 Anatomy of a Home
5 Safety in Construction
6 Tempted to Build Your Own?
7 Designing the Heart of Your Home
8 Electronic Plumbing
9 Inside Design and Construction
10 The People Behind House Design
11 A Guide To Homebuilding
12 Financing Your Home
13 Get the Best Financing Deal
14 How a Real Estate Broker Works
15 The Mortgage Trap
16 The Equation of Total Value
17 The Jobsite Team That Will Build Your Dream
18 10 Steps To Finding the Right Home For You
19 Window Choices
20 The Investment Value of A New Home

Current Issues

21 Understanding Blueprints
22 Design Well to Build Well

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