There’s never been a better time to build a custom home in DeLand. The economy is just starting to pick back up, so in addition to building the home of your dreams, a brand new home is likely to build equity faster than usual – making it a smart investment.
1. Your home, your way
The idea of a turn-key home is just that – an idea. Most homeowners inevitably buy a home and then remodel it to suit their tastes. What seems like the easiest way to go can wind up feeling inconvenient once you’ve gone through the move-in process and then find yourself navigating the complexities of the home remodeling experience.
When you take out a construction loan, you have the means to continue paying the mortgage or rent on your current residence while funding the build-out of your custom home. Once the home is granted occupancy, you truly move into a turnkey residence and can completely relax into your new home.
2. Property serves as your own private bank
While the economy is on the rise, wise investors know that the ripple effects of the previous year’s shut-downs are just starting to catch up with us. While banks, stocks, and bonds are forced to weather the ups and downs of the financial market, property is a way to hold your money in your very own bank of sorts. In addition to putting your money into something that is tangible, you can lend against it if you need to in the future.
While it’s true that real estate isn’t as liquid as stocks and bonds, in a recent article posted on CNBC’s Make It, multi-millionaires share why real estate is still their favorite way to plan for solid returns on their investments. In addition to building long-term equity, real estate investments can provide income year-round, are “real” as opposed to unseen, and smart land investments almost never depreciate by any significant margin.
Ultimately, your custom home is a way to invest in yourself. Live in it now, use the capital to invest more later, or use the home as a year-round rental income opportunity. As Marcello Arrambide, founder of Day Trading Academy, co-founder of SpeedUpTrader says, “There’s an inherent demand for real estate.”
3. Mortgage rates are still at an all-time low
Mortgage rates continue to remain at all-time lows, for an almost unprecedented amount of time. Just as “what goes up must come down,” in the world of interest rates “what comes down must go back up.” Time Magazine financial experts and consultants predict that interest rates will begin creeping up in 2021 and continue rising from there.
“We are getting close to a traditional relationship with bonds and mortgage rates,” says HousingWire housing data analyst Logan Mohtashami. So going forward, that means rising long-term bond yields should drive mortgage rates higher. If that’s the case, this is the best time to secure your construction loan. The minute your home is finished, you can look at refinancing the loan while interest rates are still cheap to lock in a low, 15- or 30-year, fixed-rate mortgage payment.
4. Take advantage of post-shutdown manufacturer pricing
So many things came to a halt between March of 2020 and this past winter. Now, things are starting to turn around but manufacturers have an overstock of all kinds of home fixtures and furnishings that they’re eager to move out of their warehouses.
The sooner you begin working with a DeLand custom home builder to select your options and upgrades, the more likely you are to benefit from the manufacturer’s discounts and sales. Everything from carpets, electronics, and furniture to other essentials that make up a luxury home is being offered at lower-than-normal prices right now.
5. Design smart, energy-efficient live/workspaces
Odds are this isn’t the last time we’ll experience social distancing or distant learning or work-from-home mandates. This year, many homeowners found themselves living in homes that simply didn’t accommodate work and schooling from home. When you design a custom home, you have the opportunity to rethink the home’s living spaces in a way that accommodates the benefits of an open design while still providing quiet, private, and automated spaces to support your family’s varying needs through the long term.
Here in DeLand and the surrounding area, tropical climates mean you can think outside of the box (literally outside the home design) to include outdoor work and study spaces that support healthy lifestyles, natural lighting, and beautiful opportunities to spend time in nature right in the comfort of your own backyard, patios, or porches.
6. Build for future design (and money-saving) success
Experienced luxury home builders have established relationships with top-notch architects and interior designers. That gives you the ability to design a home that meets your needs today and also takes the future into consideration.
In addition to all of the best technological innovations and home automation options, we’ll ensure your home is energy-efficient and that its design remains timeless for the future. By doing so, you and your family can comfortably age in place while knowing your home will be just as valuable, if not more so when it’s time to think about resale value.
Above and beyond the design, style, and accessible benefits of building a custom home, there is also the benefit of lifetime cost savings associated with new home construction. The first-time costs associated with your new home will pay for themselves since your home won’t need the same level of repairs, maintenance, or replacement of fixtures or home systems as an older home would. Combine that with energy efficiency savings and you’re looking at a difference of tens of thousands of dollars over the lifetime of a custom home.
7. Take advantage of real estate-related tax breaks
Owning real estate is one of the best ways to take advantage of federal tax deductions. In fact, investing in a custom home is one of the best ways to receive tax deductions in the US. Meet with your tax professional or a CPA to learn more about the tax deductions and benefits associated with building a new home, which include:
- Property tax
- Mortgage interest
- Repairs
- Operating expenses
- Depreciation
The combination of these tax benefits, combined with the potential for the capital gains available if you sell your house in the future, adds notable returns to your original real estate investment.
Are you looking into building your dream custom home? Contact Fogle Constructors. We have a long history of honest and loyal relationships with our clients and families, and truly believe there’s never been a better time to build your custom home.
