There’s something about buying new – like a car and that “new car smell,” or even a brand-new pair of running shoes – a springy set of new rubber, ready for the trail and new personal records.
Buying a new house is a lot like that, too, with countless advantages for consumers. Consider low interest rates. Incredible rates in the early 2000s launched an unprecedented housing boom in the U.S.; in fact, in 2003, new home sales exceeded 1 million for the first time in industry history.
Low rates, low maintenance
Those rates are still at historic lows today – hovering just under 6 percent for a 30-year fixed mortgage for those with stable income and good credit. If you’re the kind of buyer who is planning to stay in whatever home you buy for a few years, now is a great time to buy new. Why? If you’re renting now, your mortgage won’t be much more than your monthly rent – so you might as well start building some equity in something you own.
Maintenance – or lack thereof – is another reason to buy a new home. After all, since new homes are brand-new, the headaches that come with the maintenance on an older home simply don’t exist yet – and won’t for a while. Also, those who buy new homes often don't want to worry initially about upkeep and repairs.
Consider that new homes tend to use more modern architecture and systems that are usually easier to maintain, and they’re likely much more energy-efficient than homes built just five years ago.
Designed for you
New homes also have more design-from-the-ground-up options, with a dizzying array of amenities at many new home builder design centers. It’s those newer options that buyers want.
Specifically, according to the 2007 Profile of Buyers’ Home Feature Preferences, conducted by the National Association of Realtors, today’s buyers want a walk-in closet in the master bedroom (53 percent of respondents); hardwood floors and granite countertops (28 percent and 23 percent); and homes that are cable/satellite TV-ready (46 percent).
Save money
Finally, buying new also makes good financial sense. Consider that mortgage interest and real estate taxes are deductible on income tax returns, and that there are more choices than ever when it comes to financing options – from energy-efficient mortgages (EEMs) for green homes to new, government-backed mortgage options with higher loan limits as part of the nationwide economic stimulus package.
The new loan limits are effective until the end of 2008, and they affect homeowners and buyers in 71 metropolitan areas and 21 counties outside of those metro areas. Check current loan limits for Freddie Mac and Fannie Mae at http://www.ofheo.gov/media/hpi/AREA_LIST.pdf.
In the end, buying new has many benefits for today’s buyers. Need to search for a home? Log on to www.newhomesource.com and look for your new home by builder, by price or by community. You’ll be celebrating with a housewarming party in no time!