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Why Home Buying is a Great Investment

Categories: Uncategorized | Posted: September 24, 2020

The decision to buy a home can be one of the biggest decisions you make, but it can be made a little easier by knowing what sort of investment you will be making and understanding the factors around it. While the specifics of home appreciation, rate of return, interest on mortgage loans, and other factors will differ from one location to another, here are some concrete reasons for why buying a home can be a great investment.

 

Appreciation is On an Upward Trend

 

According to Federal Reserve Bank of St. Louis the average price houses have sold for has gone up more than 10% in just the past 5 years, and almost 40% if we look back a decade. Not only is this very impressive for the last ten years but, besides the dip between 2008-2010, this upward trend in the value of real estate seems to be continuing.

 

With that in mind it is important to remember that like many investments, you have to be in it for the long haul. It is recommended to keep your house for at least 5 years, but longer if possible. This will increase the chances of being able to sell your house for more.

 

Your Land Can Be Even More Valuable

 

Real estate tends to appreciate over time depending on the value of the land itself. Land appreciates on its own and can be made even more valuable by how you choose to utilize it. While you could simply tear down an old house that has fallen into disrepair and sell the land alone for a good price, adding structural value to your home is a worthy investment and increases the overall value of your land.

 

By adding amenities that provide structural upgrades or boost curb appeal, you can increase the value of your home. According to the 2020 report by the National Association of Realtors, millennials and the silent generation, who made up almost half of the home buying market, say that they are more likely to buy a new home for the amenities that come with new construction. This means that picking a good location for external amenities like parks is key, but also having access to new appliances and new home features that offer warranties is beneficial.

 

Tax and Other Benefits

 

Owning a home will often be the most important (and expensive) purchase you make in your lifetime. The good news is, the IRS provides a variety of tax breaks to encourage home ownership. Deductions for mortgage interest and property tax can lower your taxable income. Credits may also be available for qualified first-time home buyers or if you choose to upgrade your home with certain improvements such as clean energy.

 

From a tax perspective, you can also benefit from selling your home. This briefing book from the tax policy center explains that the IRS allows a tax-free profit when selling your primary home of up to $250,000 for a single homeowner and double that for a married couple. These simple tax benefits ensure that your home is financially profitable throughout ownership and continues to be profitable when you’re ready to sell.

 

This Only Scratches the Surface

 

These are some great reasons to invest in a home, but they really only scratch the surface of what is possible. So, if you are in the position to buy a home, do research for your specific location, scout it out, talk to a realtor, and make a great investment.

 

Ready to Invest?

 

These are great reasons on why now is the time to build your home. Contact Legacy Homes to get your next best investment, a new home in a growing city!

7 Reasons Why Building A Home Is Family-Friendly

Categories: Uncategorized | Posted: August 27, 2020

When it comes to finding your dream home, the question remains: should you BUY a home or BUILD one? At the end of the day, the decision is yours to make. Here are a few reasons why building a home will benefit you and your family more in the long run.

 

1. Your Home, Your Way

Building your own home offers you the freedom to customize it according to your preferences. From a wide range of styles and floor plans, it’s easy to find the best fit. The beauty of building it yourself is that you get to have the first and final say about it.

 

At the same time, it’ll be useful for when you decide to expand or change its layout in the future. If you’re planning on having a larger family, later on, having more guestrooms, a home theater, and the like, you won’t need to pack up and move out in search of a bigger home. You can make the room yourself in the current self-built one.

 

2. Energy Savings

Older houses tend to have electric fixtures that aren’t up to date. These usually use more electricity and will thus have you end up with a higher electric bill. With a new house, you can choose newer electric system that will save you loads on the power usage and payments.

 

Additionally, newer fixtures are often sustainable as well. So, that’s a win for your family, and a win for the environment, too.

 

3. Your Own Smart Home

There are tons of home appliances that are so technologically advanced, integrating them in your home will offer up conveniences that will save you time and effort on a daily basis. Revamping an older residence for this purpose will require an expensive overhaul. Instead, plan this easily with your new, soon-to-be-built one. This is critcally important when you consider the safety of your family, such as security or remote access.

 

4. Choose Your Builder, Choose Your Location

With regards to home construction, it’s always best to hire a home-builder you already know and trust, or is at least recommended by someone who’s had a great home-building experience with them. There are plenty of choices in Huntsville, and Legacy is of course a great option.

 

We work hard to build homes in great locations. This is important to families as neighborhood and school district are critical options when considering the endeavor of building over buying.

 

5. No House Chasing or Bidding Wars

One of the most challenging tasks to do when house-hunting is dealing with timing. Your kids start school, your spouse starts work. When you rely on winning a home on sale, you throw timing to the wind. And when the busy season’s on, it can get pretty stressful. All of this, you can avoid by building your own family home. Besides small schedule changes on a home construction, you know exactly when you will be moving your family.

 

6. A Secure Future For Your Family

Building your home from scratch is as good as securing your family’s future in case any unforetold circumstances occur. Your family will have a roof on top of their heads and they won’t worry about anything else but its upkeep. Though even that, if forgone, won’t change the fact that having a shelter that’s theirs is security in itself.

 

That security is also manifest in long-term value. A newer home will retain its shape and fortitude far longer than a used home. If you are looking to build your forever-home, you are also building an asset you can pass along to your children.

 

7. The Glory of Home Ownership

Owning a new home gives you that sense of pride and fulfilment. This property is yours and your family’s alone, and you’re building it from the ground up. It’s a strong reflection of just how much you truly and genuinely take care of your family. Even after its construction is complete, you can continue to make it your home long after the crews leave the plot. A garden, a pool, a porch- you have control over your housing destiny and your budget for additions won’t be eaten up by replacing an old deck or HVAC system.