The dream to own a home is still in the hearts of Americans and we celebrate that in June with National Homeownership Month. This is a time when we celebrate the homeownership dream and pay honor to the organizations that help first-time homebuyers. Owning a home instead of renting has numerous benefits. If you are on the hunt for a single-family home, here are a few great reasons why building a home to own can be your top option.
First, owning a home has sustainable affordability. If you are currently renting a home or apartment, you know firsthand how the cost is increasing. Rental rates across the nation are rising at an alarming rate. In some cases, these rates are nearly double the amount the tenant was paying under the prior lease. Families are being forced out of renting homes and apartments with no place to go. Some households are combining multiple family units or taking in roommates simply to afford to live in the house.
When you own a home as opposed to renting, the increases in overhead are lower from year to year. With a fixed-rate mortgage, your principal and interest payment amount stays the same despite inflation. Increases in the mortgage payments from year to year are usually a result of changes in insurance rates and property taxes, not inflation or a landlord’s decision. If the interest rates go down in the future, which they historically have done, you can refinance to reduce your payments or reconfigure the loan.
Second, a home is an appreciating asset, meaning that its value increases over time. The difference between what you paid for the home and what it would currently sell for is your equity. That equity is cash in your pocket when you sell. While you own the home, you can draw an additional loan upon that equity to use for projects like remodeling, repairs, or home improvements. The value of real estate increases over time, which is why there are so many investors in the market. You never own equity while you rent – that equity value in the property belongs to the owner. And the longer you stay in your home, the more equity you will gain.
When you are ready to buy a home, you may discover that the current inventory is small and buyer competition is fierce. But there is another option you may not have considered – building your own home from the ground up!
There are so many benefits to building your own home. Building a house allows you to create a home that is personally designed for you. If you build a full custom home, you get to choose everything. An established builder and architect can help you decide on the style of home you want, such as a ranch or two-story. You will be able to decide on floorplans, front elevations, paint colors, kitchen and bathroom cabinets, countertops, tile, flooring, and so much more. It’s truly an opportunity to create the home you have always dreamed of living in.
In addition to building custom, home builders most commonly offer prepared home designs to choose from. The benefit of choosing a home design plan is that it reduces the time and cost of creating a home from scratch. You simply choose the style and floor plan of the home that suits your lifestyle and needs. Another exciting benefit of selecting a home design is that you can still choose many of the fixtures inside the home and create a unique semi-custom home.
When building from the ground up, new home inventory is easy to locate. When you buy an existing home, you will spend large amounts of time and energy driving all over town with a realtor, arranging walk-throughs of existing homes, waiting for new listings to go up, and competing with other buyers. But with a brand-new development, you can visit fewer locations at your convenience, walk through the onsite models, view floor plans, and see the lots available. When you build in a developing community, you even get to choose the exact lot where you want to build your dream home! And one final note – even if a development advertises one builder, you may still be able to choose your own builder.
If you are a first-time homebuyer and don’t know where to start, Turnkey Homes is ready to help. Turn Key Homes is an experienced home builder in Wisconsin and is ready and excited to guide first-time homebuyers. Review our portfolio and then meet with us to discuss how we can help you achieve the homeownership dream. Call us at (920) 470-4315 or contact us through our website at www.turnkeyhomesllc.com/contact-us.