Why consider building what you want in your new home TODAY, not tomorrow
April 22, 2021
Building a new home is a huge commitment of time, money and emotion. When you are setting the budget for your new home, it is important for homeowners to consider what items can be postponed today and what items can ultimately cost you more, if you choose to wait to add them to your new home in the future.
“While budget and the ability to afford your new home is our first and foremost concern, spending a fraction more on your home today, may save you money in the long run,” says Paul Gray, President and CEO, Paul Gray Homes. “It is important to talk to your experienced builder about the ways you can save money when building your new home. It is also important to discuss what dream items you would like to have in your home in the future.”
Here are a few items to consider including in your new home design NOW.
- Granite and Quartz countertops- Although, it appears to be easy to add granite and quartz countertops at a later date, these countertops often require adjustments and components that may make the retrofit of the countertops expensive.
- Extra square footage- Do you have dreams of a larger home? Build the size you envision you will need now as new home additions are extremely expensive.
- Siding- Proper siding is an essential investment to ensure the longevity of your home.
- Windows and Insulation- It is more cost effective to splurge on upgraded windows and insulation when you build. These upgrades help reduce energy costs, which may offset the overall cost to add them to your home.
- Basement- If you dream of a finished basement in your future, it is important to talk to your builder. If you have the capability to finish the basement on your own, then this is a great way to save money. However, if you intend to hire a contractor or your builder to finish the basement at a later date or years later, you will face higher product prices and project costs, than you would when you first built your new home.
“With time, construction costs do increase,” explains Paul. “Finishing items when you are in the building process is more efficient. You also don’t have to deal with enduring construction while you are living in your home. Also, with current mortgage rates being so low, now is the perfect time to build new. When you finance additional costs into your 30-year mortgage, your monthly cost is lower than if you later pay cash or finance for 10-years through a home equity loan or line of credit.”
“For example, to finish an average basement is $40,000 when you are building a new home. At today’s interest rates, mortgaging that number adds $174 each month to your house payment. If you wait two years, that cost will be $60,000 to finish the basement due to it being much less efficient plus inflation of material and labor costs,” Paul continues. “With a 10-year home equity line of credit at today’s rates, the cost would be $622 per month. This increase in cost is something homeowners should consider.”
At Paul Gray Homes, we never advocate for someone to build above their budget or means, but these items are important to consider if you are building new.
Here are few ways to save when you are building new.
- Yard and landscaping – Many developments give 6 months for a yard to be added. Many homeowners can add these items on their own with a couple weekends of manual labor and elbow grease.
- Fixtures – Plumbing and light fixtures can be upgraded over time to substitute economical choices made during initial construction to help keep the cost down.
- Bathtub – The new freestanding ‘slipper’ tubs quite often can be added post construction for nearly the same cost as during the build. Make sure you talk to your builder about allowing space in your bathroom design and having plumbing connections available under the finished floor.
“It is so important to talk to your builder about your goals, budget and dreams for your new home,” says Paul. “A good thing to remember is anything you buy today, can potentially save you money in the long run.”