If buying your first home is on your mind, you have a lot to consider. You need to decide whether to buy or to continue renting for now. If you decide that becoming a first-time home buyer is for you, you need to figure out if you should buy an existing home or build a new one. Check out the pros and cons of each option before making a decision.
Renting
Some people benefit from renting a home. This may describe you if you need flexibility, for example, if you need to relocate often for your job. The same is true if you enjoy traveling and living in a different city every few years.
There are also financial reasons to rent. If you don't have extra money or credit, making a down payment on a house will be difficult. Just knowing that your landlord will take care of broken appliances or a leaky roof might be reason enough to rent instead of own.
However, when you rent, your money is going to pay your landlord's mortgage. It's not going to your own investment, so you spend thousands of dollars annually for years and have nothing to own for it when you're ready to move. Considering that it's now possible to get a mortgage that costs less than rent, buying a house is probably the right financial move for you.
Buying
Buying your first home can be a great idea if you are ready to settle down somewhere for at least a few years. So if you want an asset that you own once it's paid off, and if you want the possible tax breaks that comes with a mortgage, buying your home may be the way to go.
However, buying an existing home can come with many expenses in addition to the price. Older homes are typically less energy efficient, and that could mean higher monthly energy bills. Older homes often include outdated decor or appliances that you will want to replace, and that means more money out of your pocket or learning to live with a home you don’t love. Finally, when you buy an older home you don’t always know what you’re getting. Who built your home? What’s behind the walls? When you buy an older home there is often no one to call when surprise repairs occur - and those can quickly add up. Think of it in terms of the car you drive. A brand new car is less likely to have the maintenance required of a used car that is 10 years old and already has 100,000 miles on the odometer.
There’s another factor to consider as well: usability. Older homes are often built based on the ways families lived 10, 20, and 30 or more years ago. This means homes that include small bedrooms with even-smaller closets, formal dining rooms and living rooms that many modern families simply don’t use (but you still pay for in a higher home price and energy costs), and none of the floor plan design features that are in demand now such as a first floor master suite, loft, home office, technology center, kitchen island, bonus room, walk-in pantry and added storage.
Building
If you're a first-time home buyer with an image of your dream home in your head, buying a custom house could be right for you. This is the only way to get all the features you want from the start, especially when you work with Adair to get a custom home that's within your budget.
Brand-new homes are generally more energy efficient, in which case letting you save money on your utility bills. You can also be sure there aren't any issues left from the previous owner, such as mold, and a new build offers a warranty to tackle any little fixes after you move in. Custom home builders often build only a small quantity of homes at a time, paying particular attention to detail and craftsmanship, making your new home a home you can live in for a long time.
Are you a first-time home buyer? We invite you to visit Adair Homes and Live Chat with us to find a home you can Love Your Home for a Lifetime. We would be happy to go over some design ideas that might suit you as you consider what your dream home might look like. Contact us today to schedule a time to talk!
