Building your dream home is one of the most exciting things you’ll ever do in your entire life. However, this doesn’t mean that every step will fill you with joy. If you prepare yourself for a long wait and an even longer list of things to pay for, you’ll soon(ish) be a proud homeowner.
If you’re building a new home in and around Austin, Urbane Design can help you design a home that takes into account your lifestyle, habits, and personality. Call 512-522-6035 to schedule an in-home design consultation!
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How long does it take?
According to Realtor Magazine, it takes around 7.5 months to go from permit to livable property. Of course, this does not include snags along the way, such as extended inclement weather, code violations, COVID-19 Delays and material shortages. The 7.5-month figure also does not take into account extreme modifications or the time it takes to have an architect draw up your plans and interior designer to to make home selections. While it might seem like a long time to wait for your forever home, the prize at the end — a home that you have made yours right from the beginning — is absolutely worth the time investment.
Cost is something to think about.
Building a custom home costs much more than buying an existing property. This is because the cost of materials and labor rise with each passing year. There are also many more safety standards that modern construction must follow.
There are also additional expenses that you might not think about when you’re still in the dreaming phase of building. A garage is a great example. While many home designs include an attached garage, many do not. Further, if you have multiple vehicles or would like a garage/workshop, you’ll have to foot the bill for that separately.
Chances are, your home also does not include the cost of a fence. If you have kids or pets or simply want to maintain your privacy, you’ll pay anywhere from $2,000 to $8,000 on average to have one installed. As a general rule, composite fencing is the priciest, and chain-link fencing is the least expensive. Before you make a decision on fencing material, you will need to check with local regulations and, if applicable, your new home’s HOA.
Your interior finishes can also add to or reduce your overall expenditures. Even seemingly little things, like paint and bathroom fixtures, can add up over time. Your flooring also makes a difference. While many potential new homeowners think they want the warm fuzzy feelings of hardwood, this luxury can cost up to three times more than laminate, the latter of which may actually be your best bet if durability is your main concern.
Financing your dreams.
Now that you understand the time it takes and the money you are likely to spend on a new construction home, it’s time to educate yourself on the economics of the project. Financing new construction is not the same as getting a loan for an existing home. For one, you’ll need strong credit and, according to Discover, at least 20 percent to 25 percent down. And if you’re looking to sell your current home while you’re building a new home, you may need to take out a bridge loan, particularly if you need cash and you can’t quickly access your equity.
Ultimately, investing in new construction is a smart choice if you plan to be in the home for many years to come. However, it’s important to remember that this is not an inexpensive endeavor, and it requires access to cash and lots of patience. If you have both of these, your dream home can become more than an image in your head by the end of the year.
Guest Blog written by Suzie Wilson with Happier Home