Investing in old vs. new is a longstanding debate that won't be settled anytime soon. In Austin, we have an abundance of heritage homes along with new construction homes populating communities throughout the city. At the end of the day, it comes down to personal needs and preferences, but the benefits of purchasing an Austin new construction are hard to deny. Here's a list of how investing in new homes can save financially in the long-run.
1) Economical Option
Even though the temperatures never really cools below 40 ° in Austin, having a new home is a more economical option when it comes to energy efficiencies, considering most homes over 10 years old weren't built with the latest technologies. These days, most new constructions in Austin incorporate green technologies which include massively improved insulation, water efficiency methods, digital programmable thermostats, efficient doors, windows, lights, and various other smart home automation systems. Not only are these features good for the environment, but you'll end up saving money. Some features like solar panels can yield a strong ROI leading to higher resale values.
2) Own vs. Rent
Ranked as one of the best cities to live in the world, many people are clamoring to call Austin home, which has made it difficult to find affordable rental properties. With the price of rental homes climbing, and low mortgage rates, buying a house in Austin has never seemed like a wiser decision. Home ownership is also a great long-term investment. Ownership builds equity, a strong credit history, and significant tax reductions. That being said, Austin has been a hot spot in the last 5 years with new developments. Be sure to keep your eye on all of the new construction taking place in Central Austin, East Austin, Downtown, and South Congress.
3) New Home Benefits
Austin new construction homes are less of a hassle when it comes to home ownership compared to many of the heritage homes found throughout the communities. A new home means a clean slate where you don't have to make extensive and expensive renovations or customizations. You'll notice that many of the new homes in Austin real estate have thoughtful floor plans and efficient use of space, so you won't have to dig into your pockets for additional customization projects.
These types of homes come with modern appliances and features that are ergonomic, efficient, and economic for homeowners. If anything breaks during the first year, it will be the home builder's responsibility to fix under warranty. A new construction home in Austin equates to easier living with less repairs!
4) Easy Home Financing
Securing a home loan isn't always a walk in the park, but it's easier to get one when buying a new home. Builders are typically organized to manage the transaction with a list of preferred lenders and title companies already in place for investors. Builders want to ensure a smooth transaction for home buyers, and some builders have put together programs that make it easy for buyers to get approved for a mortgage to closing the deal. Some builders even offer significant credit incentives to help pay closing costs to buyers who use preferred lenders. Some closing cost credits can be as high as 2-3% of the purchase price.
5) Home Warranties
One of the best parts of owning an Austin new construction is knowing that your home comes with a warranty that will last up to ten, sometimes 20 years that will cover “everything”. This will save you a lot of money in the long-run if any major repair issues come up like leaky roofs, broken furnaces, building defects, and even delayed closings. Older homes are not covered with warranties, so it'll have to pay out of pocket for costly repairs.