When people think of luxury homes, they automatically think of expensive options and impractical price tags. The truth is that luxury houses come in all shapes and sizes, making them an affordable option for many people. Here are just some of the reasons why your custom built dream home can fit within your budget.
How Much of a Home Can You Afford?
Before you start thinking about buying any home, you should figure out how much you can afford. Many people underestimate their mortgage payments or don't use the right equation to figure out their price limits. Use a mortgage calculator to get a good idea before you talk to a builder.
For most people, the amount of their mortgage is about one third to one fourth of their monthly household income. However, many factors can go into calculating a mortgage. Down payment amounts, homeowner's association fees and home insurance rates can affect how much you can afford. Be sure to consider other monthly expenses as well, such as credit card payments or loans.
Many people don't realize that only $40,000 in annual income with little to no debt can get them a brand new home. You could be the proud owner of a duplex or townhouse. If you need a little larger home, $60,000 annually can get you a single-family home, which is ideal for larger families.
Purchasing a quick possession or building new also affords you several “perks”. In today’s query’s market, for example, quick possession homes are often accompanied by builder incentives allowing you to capitalize on free upgrades, discounts, and other concessions. Not to mention, if you are a first-time homebuyer, you may qualify for down payment assistance or other financial perks to help you in your purchase.
Builders may also offer you similar incentives when it comes to new builds - including monetary concessions. Choosing the builder’s preferred lender also has financial benefits not offered in a resale home situation.
Easier Down Payments
One of the biggest benefits of working directly with a builder is that they are able to offer more flexible financing options. While this doesn't necessarily mean a lower mortgage rate or a smaller price tag, it can mean a very low down payment. Most home buyers are expected to put 20% of the home's value down upon purchase; however, builders can work with almost any budget. This means less saving before you buy.
Stable Housing Market
Protecting your investment is important, especially when you are buying a home. Unfortunately, some pre-owned homes can depreciate in value depending on how old they are, the features they offer (or lack) and their location. By building new and, in some instances, purchasing a newly built home, you can select affordable features for your home that add to its overall value. You can also choose a strategic location in Calgary in a growing community, further protecting your investment. A stable local housing market can give you peace of mind when making a major financial decision.
Get More Value by Getting What You Want
The main reason people choose to have a home built is that they can select their features. When you work directly with a builder, you can communicate and specify exactly what you want. This doesn't just affect the final price tag of the home, it affects how much joy you get out of the home. You'll get a much better value when you don't have to make sacrifices.
Build Your Dream Home on a Budget
Our goal is to help you get the perfect home. We want you to get the brand new, high quality living space that you and your family can afford. By working with us directly, we are able to help you discover homes with practical features in stunning locations that suit your lifestyle. Contact us today to see just how inexpensive your dream home really can be.