The new building is currently anything but a bargain. Here’s why.
There are many advantages to buying one New home building. For one, with some new constructions, you can design the house to suit your needs and tastes. And even if you don’t have a say in the design process, you can at least move into a house that no one has ever lived in. Your new home is likely to be in great shape. All new fixtures and fittings are unlikely to require major repairs for at least a few years.
However, when there is a downside to buying a new home, you usually pay a premium. And a newly built house could cost even more this year than normal.
The new building prices are rising
Many sellers have been reluctant to list their properties during the pandemic so there is a shortage of available homes. As a potential home buyer, you might think that a new home could be an alternative to buying an existing home. But be careful as this route will likely cost you more money this year.
The prices of sawn timber have risen after a major shortage. In fact, low supply coupled with high demand for builders means that lumber has increased 340%.
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Wood is an essential part of house building. In addition to framing, wood is used in everything from doors to floors to cupboards. Unsurprisingly, it is now costing builders more money to build properties from scratch. In fact, the average price for a new single family home has increased $ 35,872 this year – not exactly pocket money.
Can you afford a new building?
A newly built home is likely to cost a lot more this year. But maybe you can still afford it. How can you know for sure?
First, plan a budget for your recurring expenses. Then use a Mortgage calculator to see how much a new build home in your area could cost each month. Remember that in addition to taking into account your actual mortgage payment, you also want to consider peripheral costs, such as: Homeowner insurance and property taxes.
While new builds tend to require less maintenance and repairs, it doesn’t mean you don’t have to sink any extra money in your home. Make sure you can swing this cost too.
If you’re still looking to buy a newly built home, turn to some others Mortgage lender to see what they offer. You can either make these calls yourself or you can get help from a Mortgage broker Obtain offers on your behalf. Shopping could be your ticket at a lower interest rate. And that could help offset the premium you pay for your brand new dream home.