by Craig Axelrod
The real estate market, including the market in Commack New York, has been hit hard over the last couple years. This nationwide recession has certainly had an impact on the real estate market, creating opportunities for those who are ready to buy.
Interest rates are at historic lows, making real estate in Commack more affordable than ever. Interest rates typically range from 4 to 6%, about half of what the rates were just a decade ago.
If you’re getting ready to buy a home , whether you are a first time home buyer or moving from an existing house, there are several questions to ask yourself:
Ispurchasing a house now a solid long-term investment? Given that the real estate market has declined 20 to 30%, you’re purchasing a house at deep discount to prices from three or four years ago. You’re buying at $.70 on the dollar. When prices return to normal levels, you will see an appreciation of almost 50%.
Are you a smart investor? Most people are not. They lack the discipline to make long-term investments, and often hold off investing and saving-until it is too late. When you invest in a house, you are making a long-term commitment. This, in a very real sense, represents forced savings. Every month, you have the opportunity to build equity in your home as you pay into your mortgage. Historically, real estate appreciates greatly over time. Taken with a long-term view, real estate remains one of the best investments available.
Am I buying in the right area? Commack New York is a wonderful area to live in and to raise a family. An established community, it provides the resources of a major suburb with high quality of living standards. With new construction, you are able to get the home of your dreams. The builders have designed beautiful homes, and very often you are able to customize to suit your needs. Given the current economic conditions and lowered real estate prices, now is a great time to purchase your first house or your next house.
Are there advantages in purchasing new construction? Yes. New construction tends to be bigger, more current and can easily be tailored to suit your taste. In contrast? When buying an existing home, you must very often go through costly renovations to tailor that home to your taste. New construction offers you the chance to make those changes before the houses built. Generally, it cost 2 to 4 times as much to make changes to an existing house as opposed to simply changing the plans on a house that is yet to be built.
What questions should I ask of a home builder?
If you’ve never bought a new home before, there’s several questions that you should ask the builder:
1. Does the builder have experience within the county? To build a house, you need permits, zoning approvals, and compliance with county and local ordinances. An experienced builder is aware of these requirements; and inexperienced builder is not. Mistakes here can be very costly and presents massive delays.
2. Does this builder put up one house at a time, or have experience in building communities? Often, you are better off with the builder who works on multiple developments at once. While this may seem counterintuitive, a small builder who only handles one task at a time works with a limited crew. If any member of the crew-a plumber, painter or electrician-is unavailable, your construction may come to a stop for weeks. In contrast, a larger builder has assorted craftsmen available to him, and may deliver a steadier construction project.
3. Do you want to be in a new community or a single renovated home within an old neighborhood? The community around you not only impacts the resale value of your home, but also impacts your lifestyle. If you are in a community with dilapidated homes, and yours is the only new construction in the area, your house can feel out of place. If the builders will bring a new development, and you are one of the new homeowners in that new community, there is a much better fit for you and your home. Additionally, all of the people living in that development will be moving in at about the same time and will have the opportunity to develop friendships and relationships. If you are moving into a block with families that have lived there for decades, you may be the outsider and maybe quite some time for you to “fit in”-if at all.
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