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If you’re on the market for a home, you may be asking yourself whether it makes more sense to build a new home or buy a resale home. If you are looking to buy a home, it’s a big decision. The answer depends on what is important to you.
Advantages of an existing neighborhood
Established neighborhoods with lived-in homes have much to offer. If the neighborhood has been around long enough, trees may canopy the streets and the landscaping may be lush and mature. It is hard to beat the charm of an established neighborhood that is already lined with well-loved family homes. It’s a place you can easily imagine walking the dog or strolling with the family.
Another advantage of a resale home is that you can move in relatively quickly. With a new construction home, you often have to wait for construction to be completed. It could be six months or more, depending on delays from the weather or supply shortages. A resale home is ready at closing, often just 30 to 45 days after making an offer. That beats having to stay in a cramped apartment waiting for your home to be built.
There is also convenience involved with buying an existing home. You won’t have to put up with construction traffic through your neighborhood as other homes are completed and you already know what surrounds your home.
Also, a resale home can usually be purchased at a better value per square footage than new construction. You often get more house for the money with a resale home.
Advantages of a new construction home
Like the idea of being the first to live in a house, picking out its features for yourself? Then new construction may appeal to you. Although new neighborhoods may lack certain charms of an older neighborhood, in many ways new neighborhoods may be more desirable.
The location of a new neighborhood is one of its best features. New neighborhoods tend to go up on the outskirts of town, where the new growth occurs in a community. That often means new schools for all of these new residents. It can also mean new shopping centers to accommodate that growth, too. You’ll often find big box stores convenient to new construction neighborhoods.
New neighborhoods also tend to have great amenities. Today, everyone wants workout facilities, playgrounds, open spaces, swimming pools, etc. in a neighborhood. A resale home may not be able to offer much of that, but new construction homes often feature these amenities. Many new neighborhoods often have social functions centered around its pool, open spaces, etc.
Love a nice lawn but hate spending your Saturdays taking care of it? Well, a trend in new construction communities is to have lawn maintenance provided with your homeowner’s dues. No more getting up early on Saturday morning to beat the heat to mow.
New construction homes also offer a chance to be friendly to the environment. New construction must be built to abide by the latest regulations, but that also means that they are usually more energy efficient than a resale home. That could equal savings to you each month on your utility bills.
Weigh the pros and cons of buying a resale home vs. building a new construction home. Know your tastes and what is important to you when making this decision. Then, go out and buy the home that is right for you.
Published on August 03, 2007Read full article at realestate.com
First Time Homebuyers Credit
The first-time homebuyer credit is a new tax credit included in the recently enacted Housing and Economic Recovery Act of 2008. For homes purchased in 2008, the credit operates like an interest-free loan because it must be repaid over a 15-year period.
The credit was expanded in 2009 for homes purchased in 2009, increasing the amount of the credit and eliminating the requirement to repay the credit, unless the home ceases to be your principal residence within the 36-month period beginning on the purchase date.
The credit is 10 percent of the purchase price of the home, with a maximum available credit of $7,500 ($8,000 if you purchased your home in 2009) for either a single taxpayer or a married couple filing a joint return, but only half of that amount for married persons filing separate returns. The full credit is available for homes costing $75,000 or more ($80,000 if purchased after Dec. 31, 2008, and before Dec. 1, 2009).
If you meet all first-time homebuyer eligibility requirements, see Form 5405, for more details:
Form 5405
For further detail visit:
http://www.irs.gov/