Benefits of Buying a New Construction When You’re Active Duty Military
Here at Park Grove, we strongly believe that owning a home is a dream that can come true for everyone. In the real estate market, the determinant of the housing you can get is strongly determined by the amount of financing that is available to you.
So whether you want to buy a luxury Park Grove condominium, or a single family unit that is completed and ready for occupancy or you want to buy a new construction the key factor to consider is financing first.
New construction is a bit different from buying a resale unit. In the former, you sign a contract with a developer and put down a down payment for a house that is yet to be constructed.
With the advice of an experienced realtor, you negotiate the terms of the builder’s contract and the specifications of the home that you want the developer to build for you.
Payments are usually done on an installment basis according to an agreed upon payment plan.
Active duty personnel operates under a unique set of circumstances when it comes to purchasing new construction. Budgets can be a key consideration depending on the rank of the person and concern about possible transfers permeates across all ranks.
In this article, we look at the benefits of buying new construction while you’re active personnel.
Stability and building roots
Left unmanaged, life in the military can be in a constant state of flux. There is no better way of setting roots than building a home. This is of particular importance when the family is involved. There’s a deep sense of stability and peace of mind knowing that you have left your family in a stable home. There are also a lot of government incentives to assist personnel who suffer from financial hardship due to circumstances forced on them while serving their country.
New construction is an investment in your future
Here at Park Grove, we honestly advise you to invest in your future. Renting might seem convenient and cheaper but think about this, you will never own the home no matter how long you rented it for. The rental home is an investment for the landowner and simply an expense for you without any hope of ever owning it.
The house that you invest in will appreciate in value. If you are due for a long transfer and need to sell it, the new construction homes have a higher return on investment because they fetch good prices on the market. Future owners place a premium on new homes that require less preparation for occupancy and maintenance.
Financing and affordability
There are a lot of incentives available for active duty military personnel. If you incorporate all these incentives and save dutifully, your actual mortgage payments will not be as high as you think.
Under the service members civil relief act (SCRA), active duty military personnel who purchased a home prior to deployment can have the mortgage interest lowered to 6%. And get this, excess interest payments and interest rate will be pardoned.
Ready for occupancy
A new construction home at park grove and other complexes is move-in ready and will not take any more of your limited time and resources to renovate it to comfortable living standards. If you were involved in the project from the beginning then the house is already built to your specs.
Renting versus buying
In rentals, matters concerning maintenance are not your problem you pay lower upfront costs to occupy the property and you can move easily at a moment’s notice. You are however incurring a monthly expense called rent that has no future return value to you because you will never own that property.
When you buy a home at park grove, the cost of ownership is high when you consider the cost of financing and cost of acquisition like closing costs and down payments and mortgage payments. But you’re investing in an asset that you have ownership in.
While you’re living in the home the mortgage payment could actually be lower than the current market rental rates.
So the decision of renting versus buying should be based on solid financially based criteria where one puts decision puts you in a better financial position than the other. We highly recommend that you consult your personal finance manager for guidance and options when it comes to home ownership options.