Why Now is the Time to Build a New Home
October 1, 2016
One of the biggest decisions and purchases you’ll make in your lifetime is buying a house. And you aren’t just buying a house, you’re buying a home. If you’re like most people, you want your home to have exactly what you need and want. There’s not a better way to get exactly what you want than to work with a trusted builder to customize your home to your specific needs and preferences. In general, building a home is a commitment and a process, but can be extremely rewarding. Now is the time to build a new home, and below are a few reasons why…
1. Interest Rates are Low
For the last few years, interest rates have been lower than any other time in history, and they still remain relatively low. To get a visual on the history of how interest rates have fluctuated since 1871, see the graph below –
Click to see source
As you can see, rates are historically low. This being said, many believe that interest rates will continue to rise. See the chart below for one prediction of interest rates in 2017:
Click to see source
So…even though interest rates are lower now, they are constantly fluctuating and are predicted to rise in 2017. The difference in just a single percentage point in a loan interest rate can cost you or save you more than $40,000 over the lifespan of your loan. A higher interest rate will leave you with much less of a home building budget because higher interest rates will increase your monthly payments. For example, for a 30-year mortgage, a $200,000 loan with a 4% interest rate has a $955 monthly payment, while an 8% interest rate has a $1,468 monthly payment. That price difference could greatly affect your end budget and the home you are able to build.
You can sign up here to receive regular interest rate updates so that you can pick just the right time to apply for your home loan.
2. Material Prices are on the Rise
A large expense when building a home comes from the materials you need – wood, bricks, paints, electric filling, flooring, etc. The price of materials can greatly impact your overall budget for building. Material prices have been steadily increasing, and they are only going to continue to rise.
3. Energy Efficiencies
Several years ago, building an energy efficient, “green” home was more expensive and required working with home builders who specialized in green home building. Now, energy efficient options are more accessible and affordable to all home builders. Examples of these options include improved heating and cooling systems, better insulation techniques, energy efficient windows, more sophisticated hot water systems, etc. All of these energy-saving options can ultimately save you money in the long run.
As an ENERGY STAR builder, Dunbar Builders can help you make energy efficient choices when building your new home. No more overpriced energy bills!
4. Health Considerations
A new construction home will be free of asbestos, lead and formaldehyde emissions, unlike older homes that can be purchased, and will improve the overall health conditions of the home and once again, save you money in the long run.
5. Safety Conditions
When building a home, you can hard wire your smoke detectors and alarm systems with battery powered back ups that will provide improved safety.
In Short…
There’s never been a better time to build a home. Interest rates for new home loans are still low, material prices are on the rise, it’s become easier to build an energy efficient home, and new homes increasingly offer health and safety benefits.
