Buying a new home will help you build equity faster and pay lower taxes compared to buying a used home. New homes help you build equity faster because you don’t have to spend as much money on maintenance and repairs. Owners of newly built homes generally pay lower taxes over the first two years as well.
Build Equity Faster
Owners of newly built homes can save up to 15% on homeowner’s insurance and their homes have higher resale value and appreciate more than used homes.
The expensive systems in a new home such as HVAC, plumbing and electrical, as well as kitchen appliances, are new and under warranty so there’s no worries about spending large amounts of money on replacing them.
A 10-year-old home can cost as much as 580% more in annual maintenance and improvement than a newly built home. It’s hard to build equity in a home if you have to replace expensive systems and appliances.
Average cost to replace these common items:
- Roofing: $15,000
- HVAC System: $5,000
- Kitchen Appliances: $2,500
- Water Heater: $2,000
According to NewHomeSource.com, owners of newly built homes generally pay lower taxes over the first two years. In addition, home owners in general can deduct their mortgage interest from their taxes.
The Tax Benefits of Home Ownership in 2018 page at MortgageCalculator.org has quite a bit of information on deducting mortgage interest and states that “In the new tax bill for 2018 interest paid on HELOCs and home equity loans is no longer tax deductible, while interest on up to $750,000 of mortgage debt still is.”
Lower Closing Costs
Many home builders work with lenders to reduce or eliminate closing costs for their home buyers. McKee Homes will pay closing costs up to 1.5% of the sales price when using one of our preferred lenders.
Because you can build equity faster and pay lower taxes, and in many cases pay lower or no closing costs, it makes sense to buy a new home as one of the best investments in your family’s future