As real estate prices have increased steadily this past year in the Portland/Vancouver area, building a custom-built home makes more investment sense then ever. The demand for quality in homebuilding has also become higher than ever before due to buyers being more informed. While one could safely say all home purchases: i.e. “Tract”, “Spec” or “Custom” (new or used) are investments; custom homes have proven to be lower risk with higher return investments. I’ve listed below five top reasons why now is the time to have your custom dream home built for investment reasons.
1. Quality Built with State-of-Art Materials
New homes require less maintenance because each component is NEW and built with quality materials. Building materials are created to last longer and be more environmentally friendly than ever before.
Internet/Media connectivity, smart home technologies, and state-of-art HVAC systems add value in most custom homes.
Most custom-built homes come with a warranty that can often be extended, offering many coverage options.
2. Advanced Energy Efficiency Today’s home buyers not only have a deeper knowledge of new building products but also of green energy materials. Today’s custom-built homes are more energy-efficient and utilize space and lot/property better than homes built 20 years ago. Today’s custom home will cost you less in utilities than an equal size home built 5 years ago. Advancements in better insulation applications, low voltage lighting, solar off-grid and alternative energy gives the custom home buyer more options adding up to greater cost savings. Greater utility cost savings equal greater investment returns.
3. Custom Built Appeals to Perspective Buyers While custom homes are built with the needs and wants of the client, often these homes will fit the needs and wants of future buyers as well. Real estate agents are often told by buyers that they don’t want a cookie cutter home? Custom Homes are one of a kind but built to code with solid engineering principles and great design, making a custom home more appealing for generations to come.
4. The Home of the Future Has Arrived and It a Custom Home The future has arrived. Technology coupled with advancements in engineered building products has unleashed a creative approach to custom home building. A home that speaks to you and you to it, that allows you to manage your home using a mobile device while you are away, high tech security, just to name a few. These are not uncommon. They are available and ready to be built in to your custom home. The home of the future is a home you can bank on increasing your investment.
5. Tax Advantageous You can deduct the interest on up to $1 million in mortgage indebtedness on your primary home, you can also sell your primary home for tax free profits up to $250,000 for singles and $500,000 for married couples if you live in the home for the last two of a five-year period. If you are in the 28% or higher tax bracket, it behooves you to own property. “Investment” is defined as “the action or process of investing money for profit or material result.” Every time I drive up to my house I have the physical proof (material result) that I made a great investment. When I see the prices of homes and the cost of renting rise I know exactly what owning my home has profited me.
2. Advanced Energy Efficiency Today’s home buyers not only have a deeper knowledge of new building products but also of green energy materials. Today’s custom-built homes are more energy-efficient and utilize space and lot/property better than homes built 20 years ago. Today’s custom home will cost you less in utilities than an equal size home built 5 years ago. Advancements in better insulation applications, low voltage lighting, solar off-grid and alternative energy gives the custom home buyer more options adding up to greater cost savings. Greater utility cost savings equal greater investment returns.
3. Custom Built Appeals to Perspective Buyers While custom homes are built with the needs and wants of the client, often these homes will fit the needs and wants of future buyers as well. Real estate agents are often told by buyers that they don’t want a cookie cutter home? Custom Homes are one of a kind but built to code with solid engineering principles and great design, making a custom home more appealing for generations to come.
4. The Home of the Future Has Arrived and It a Custom Home The future has arrived. Technology coupled with advancements in engineered building products has unleashed a creative approach to custom home building. A home that speaks to you and you to it, that allows you to manage your home using a mobile device while you are away, high tech security, just to name a few. These are not uncommon. They are available and ready to be built in to your custom home. The home of the future is a home you can bank on increasing your investment.
5. Tax Advantageous You can deduct the interest on up to $1 million in mortgage indebtedness on your primary home, you can also sell your primary home for tax free profits up to $250,000 for singles and $500,000 for married couples if you live in the home for the last two of a five-year period. If you are in the 28% or higher tax bracket, it behooves you to own property. “Investment” is defined as “the action or process of investing money for profit or material result.” Every time I drive up to my house I have the physical proof (material result) that I made a great investment. When I see the prices of homes and the cost of renting rise I know exactly what owning my home has profited me.