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ReSET Blog
Blog · September 05, 2017 · AUTHOR: Udi Dorner

The Advantages and Disadvantages of New Property

Buying a new home

Buying New Construction: A Worthy Risk?

Most people have dreamed of buying a  home. It’s exciting to think about owning a place where no one has ever lived before; where you can create your own space exactly the way you want it to be. Building a home from scratch is one way to do this but it’s not the only option. New construction homes offer this to home buyers as well, with many home builders offering a great amount of customization.  If you are wondering if you should buy a new house, learning the advantages and disadvantages of buying a new home can help you decide. According to information from the U.S. Census and the U.S. Department of Housing and Urban Development, more than 1.2 million building permits were issued for residential construction in July 2017, 4 percent higher than in July 2016. Of those, more than 811k were specifically for single-family residences. As new developments are built, some of the shortages in housing inventory will be alleviated, making housing more affordable and a new custom home an attainable goal for many buyers.

Advantages of Building or Buying a New Home

Modern Design and Features: A new home will have all the latest design and building materials vs a resale home. No need to worry about updating an outdated home, or upgrading cheap, old or broken fixtures. Particularly when it comes to the kitchen or the bathroom, this can be a big advantage for homebuyers. New Development Amenities: If you are buying in a new development, you can expect innovative community amenities. Most new neighborhoods are offering outdoor spaces, bike trails and parks, sports fields, exercise facilities, pools and much more to their residents. As an added bonus, some of these amenities may mean there's no need for the extra expense of a gym or pool membership. Customization: Whether you are buying or building a new home, there are many options available for customizing your home just the way you want it. You can often choose the flooring, countertops, paint colors, fixtures and more, so that your home is exactly the way you want. This way, buyers don't have to make any costly renovations or updates after moving in.  

Disadvantages of Building or Buying a New Home taxes after you sell your new home

Higher Property Taxes: Many communities finance the initial building costs through higher property taxes and assessments. These taxes pay to build roads, schools, parks and other essential services that residents of the new neighborhood will get to enjoy, but come with a hefty bill come tax season. This will also most likely mean you will encounter higher taxes on selling a new home as opposed to an older home. More Expensive Financing: If you are building a home from scratch, you will pay higher interest rates for the construction loan, as most of them are adjustable during the construction process. You might also have costly delays and changes during the building process, which means you'll end up paying for your current housing while also paying on the construction loan for longer than you expect. Builder Delays/Alternations: The beautiful community pool that the builder showcased in the brochure might not be completed on schedule - or at all. Read the contract carefully to ensure the amenities are guaranteed and when they are scheduled to be finished. If you're paying for a higher mortgage expecting certain amenities, you may be disappointed. Also, check carefully and make some calculations of the average time to sell a house in that area, in case after some years you decide to move to a different home.

Non-established Neighborhood: Unlike an established neighborhood, you don’t know how your community will ultimately develop. Everything is new - neighbors, schools, yards and landscaping, etc - and subject to change.

  Buying or building a brand new home offers you the ability to create your dream home just the way you want it. If you’re thinking about buying a new construction home, consider the advantages and disadvantages before you jump in. You should also check out our tips for selling a house, which will provide you an additional angle to pay attention to when buying a house. Proper planning can

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Comments
  • House and Lot in Naga says:
    August 21, 2019 23:31 pm
    Despite it being expensive, I think buying a new home is all worth it as you will get what you paid for. Regarding new neighborhood, I think a fresh start is good for us. Buying a new home gives you the perks of customizing it to your own liking! That's what I like the most.
  • David Johnson says:
    August 21, 2019 17:42 pm
    That's really interesting that there are different amenities offered by the community if you buy in a new development area. I've wanted to move into my dream home for a few years and I think that it would be great to do so while my kids are young so they can have all of these perks. I'll have to look into home construction lots for sale.
  • Stefan Bradley says:
    June 28, 2019 06:25 am
    You bring up a good point when you mention how you can customize the details of your home as much as you want if you end up building your own house. My wife and I want to get a new house and think that having it built would be a wise investment of time and money since we have the choice to decide the placement of each room. We will be sure to keep this information in mind as we consider having our new house built.
  • Bob says:
    June 10, 2019 16:14 pm
    I love how you talked about how new homes will have innovative amenities and possibly larger living spaces. We are thinking about moving to Maine in August and want a house that has an awesome heating system for the winter. I'll have to consider just having contractors build a house the way we like it if we can't find any that we like.
  • Dave Anderson says:
    May 22, 2019 09:30 am
    It would be nice to have a new home with the latest more modern design. Maybe it would be good to get a new single-family home for my family. This way, we wouldn't have to feel like we were in an old home, and we could have more modern appliances.
  • Thomas Westgren says:
    May 22, 2019 08:16 am
    I like how you said that a new home construction will have the latest in design and materials. My wife and I are considering building our home and I think that this has increased my desire to do it. That way we can have all of the modern stuff that we would love to have.
  • Ethan Hansen says:
    May 20, 2019 07:54 am
    I found it interesting how you mentioned how new homes can be customizable to fit your needs and desires without adding on to your home on a separate date. My wife and I are in the process of retiring and I want to make sure we do everything we can to make our new home accessible to aging in place because it will be the last home we ever buy. I will keep this in mind as we search for new construction near us that can cater to the needs of our older bodies as we age in place!
  • Ethan Hansen says:
    May 16, 2019 08:01 am
    I found it interesting how you mentioned how custom homes can utilize modern building strategies to create a living space that is perfect for your needs and desires. My wife and I are in the process of retiring and we want to make sure we move into a home that is small enough for us to navigate as we age but large enough for our grandchildren to never lose interest in playing. I will keep this in mind as we search for custom home builder services near us that can help us achieve this goal!
  • Dave Anderson says:
    May 06, 2019 10:47 am
    That is a good idea to think about the advantages and disadvantages if you were buying a new home. Maybe that is something that I should look into sometime soon. House construction is something that I would want to look into buying sometime soon.
  • Bob says:
    May 03, 2019 16:18 pm
    I like your tip about how new homes will have the latest design. That makes sense considering all the wood and space for amenities will be updated from previous generations. I'll have to consider your tips so that we can get our new house built.
  • Dave Anderson says:
    April 23, 2019 14:34 pm
    That is a good point that a new home will have the latest building materials. Maybe it would be good to get a custom home built so I could get the best materials. This is something I am going to have to look into sometime soon.
  • Dave Anderson says:
    April 18, 2019 14:33 pm
    That is a good point that if I am building a new home, there are many options for customizing it. Maybe it would be good to hire a construction crew to help me do that. Then I would be able to have a really nice home and I wouldn't have to do that customizing myself.
  • Ethan Hansen says:
    April 09, 2019 11:15 am
    I found it interesting how you mentioned how new homes offer all the latest trends in modern home design. My wife and I want to move when I retire next month but we have been debating on whether or not we should build our retirement home or buy one and augment it. I will keep this in mind as we search for new homes for sale that offer modern design practices!
  • Bree Ward says:
    March 27, 2019 22:42 pm
    It's definitely true that buying a new property and building your custom home is like a dream come true because you get to design your house, and you can incorporate all preferred ideas. Thank for enumerating the advantages of building a custom home. If ever that we buy a property soon, I will suggest my husband build a custom home and find a reputable contractor who can help us out.
  • Peter Thomson says:
    March 11, 2019 04:17 am
    Yes, this is a good post without any doubt. You are actually doing a great job. I was inspired by you. So keep it up!
  • Southern Maryland Development LLC says:
    March 02, 2019 03:48 am
    I didn’t find any disadvantages of constructing a new home because it is far better than buying an old one. Keep sharing!!
  • Gerty Gift says:
    February 07, 2019 06:00 am
    I liked what you said about not having to worry about needing to do any updates. My husband and I were trying to factor this into our budget so that we were able to save something to make our house more up to standard. It would be great to move into a house that we wouldn't need to do any of that.
  • Braden Bills says:
    February 05, 2019 08:11 am
    I want to make sure that I get the right property. It makes sense that I would want to get a new one! It's nice that new homes can have such cool and modern designs.
  • Sariah Meagle says:
    February 04, 2019 23:09 pm
    New homes as you mentioned do have modern design and features as you mentioned which makes me think that I should buy one to take the opportunity of getting the latest updates. Since I do agree that there are new development amenities to it as you suggest, I'll try to make sure that the one I'm buying has good outdoor spaces. I do like that I get to have customization options with new homes as you suggest so I might buy a new home instead of an old one if there are any real estate companies offering them.
  • Braden Bills says:
    January 10, 2019 07:15 am
    I'm trying to get a home, but I'm not sure what to look for. It makes sense that I would want to look for a brand new home! That way I can ensure that it has all the latest modern designs. I wouldn't want to have to update everything in an old home, after all.
  • Dave Anderson says:
    October 31, 2018 14:14 pm
    That is a great point that I wouldn't have to worry about updating an outdated home. I would be able to be on site and watch the development. That would be ideal so they could get the house exactly how I want it.
  • John Churchill says:
    October 25, 2018 03:24 am
    Yes, this is a good post without any doubt. You are actually doing a great job. I was inspired by you. So keep it up! For more info :- https://www.erltd.co.nz/
  • Braden Bills says:
    September 11, 2018 06:09 am
    I'm trying to decide if I should have a new home built. It makes sense that I would want to go along with that! Being able to have all kinds of modern features and designs would be so beneficial.
  • Amanda Drew says:
    July 25, 2018 14:01 pm
    You make a good point that you won't need to worry about updating any old features. My husband and I don't want to have to deal with any repairs but still have a home. So it seems like getting a new home would be a good option for us.
  • Sherry Gajos says:
    July 20, 2018 10:49 am
    Wow, I'd never considered that you can have a lot of amenities when you buy a newly built home in a new development. I have a couple kids and my husband needs to move us all to a new city for his work, so we're looking at a new house there and I want to keep my kids entertained. Thank you for the information that such new developments often have outdoor spaces, bike trails, parks, and other facilities for their residents.
  • Hannah Neilson says:
    June 07, 2018 16:54 pm
    Thanks for explaining how buying in a new development subdivision is nice because it allows you access to modern design and features. It would be good to consider this if you are really into a modern home design especially. My husband and I are looking for a new house for our family, so we'll have to consider a new development property.
  • Bethany Birchridge says:
    May 07, 2018 11:06 am
    I really like that buying a new home will save you money when it comes to replacing worn fixtures, as they are all new. My friend just had a baby, so she and her husband want to find a bigger home. However, they aren't sure if they want a new home or not. I think reading this article could be beneficial for them, so I'll share it.
  • Latoya Anderson says:
    March 30, 2018 18:55 pm
    What appealed to me the most in your blog is when you talked about how you can be sure that you won't have to worry about updating your home once you buy a newly constructed house because it has the latest design and building materials. My husband and I are interested in buying a house that will not require us to spend more in the long run because of updating its features and designs. This way, we can save more money. We'll make sure to consider buying newly constructed homes. Thanks!
  • Todd Stauffer says:
    February 02, 2018 07:09 am
    I like how you said that if you are building a new home, you have the option to make it exactly how you want it. My wife and I had decided a while ago that we want to build a new home. Retirement is coming up soon for both of us and we are excited! Hopefully, we can find a new home builder we could talk to in order to get some of our customization ideas set in concrete.
  • Tyler Meredith says:
    September 12, 2017 12:15 pm
    I like that you talk about all the features you can get when building a new home. It makes sense that having a new home built would allow you to tailor the home's features to your preferences allowing you to get all the latest technology. This could be helpful to keep in mind for if I build a home because getting things like modern door/window locks and the latest in HVAC technology could help me feel much happier with having a custom home built.
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