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Existing Home vs. New Construction

Existing Home vs. New Construction: The Financial Side in Florida

Do you want to be a homeowner in Florida? Well, you will need to make a decision on whether to purchase an existing home or have a new construction. Both options have their merits, but it’s important to consider the financial implications before making your choice. Let us look at the financial side of choosing either an existing home or having a new construction.

1. Cost of Purchase:

Generally, existing homes tend to be more affordable compared to newly constructed ones. This is because new construction homes often come with premium pricing due to the inclusion of modern amenities and the use of newer building materials. Existing homes, on the other hand, may require renovations or updates, which can be factored into the purchase price.

2. Maintenance and Repairs:

New construction homes usually come with warranties on major systems and appliances. This offers some peace of mind to the homeowners. In contrast, existing homes may have older systems and appliances that could require repairs or replacement sooner. It’s important to note that maintenance costs can vary significantly depending on the condition of the existing home and the level of upgrades performed by the previous owner.

3. Customization and Upgrades:

One advantage of new construction homes is the ability to customize and choose upgrades according to personal preferences such as windows and flooring. However, these customization options often come with additional costs.

 Existing homes may require renovations to achieve desired features, and the expenses associated with these upgrades should be factored into the overall budget.

4. Property Taxes and Insurance:

These 2 are crucial considerations when evaluating the financial side of homeownership. In Florida, property taxes are based on assessed property values, and newly constructed homes may have higher assessed values due to their modern features and construction quality. This could result in higher property tax payments compared to existing homes with similar square footage. 

Insurance costs can also vary based on factors such as the home’s age, location, and construction type. New construction homes may have lower insurance costs due to compliance with current building codes and hurricane-resistant features.

5. Energy Efficiency:

For both environmental and  financial reasons, energy efficiency has become an important factor for consideration for homeowners. New construction homes often incorporate the latest energy-saving technologies, such as energy-efficient appliances, insulation, and HVAC systems. These features can help reduce utility bills and potentially qualify the homeowner for tax incentives or rebates. Existing homes can be modified for energy efficiency, however they might require additional investments to acquire the same energy levels.

The journey to homeownership in Florida can be exciting. It’s important to consider your personal circumstances and preferences. If you’re looking for immediate cost savings and the charm of an established neighborhood, an existing home might be the right choice for you. On the other hand, if energy efficiency and customization are important to you, investing in a new construction home could be the better option.

In the end, both options have their pros and cons. The decision on which option to go for depends on your financial situation, lifestyle, and long-term goals. It’s advisable to consult with a real estate professional who can provide guidance based on your specific needs and help you make an informed decision. May your dream to be a  homeowner in Florida be fulfilled.

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At Gold Accounting Tax, we know you want to be successful in real estate.

In order to do that, you need an in-depth understanding of your financials at any given time.

We understand because we are real estate investors ourselves and understand the specific challenges real estate businesses experience.

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