A trend that has continued over the last few years is the increasing demand for new homes, and building a home that fits your needs can certainly seem like the best way of going about things. Whether you are simply exploring the options available to you or gearing up to break ground next week, here’s what you should know about building a home in Miami.
Pricing Is Way Up
With supply-chain issues ramping up the costs of building a home since the beginning of the Covid-19 pandemic, construction prices have leveled out a bit but remain elevated.
Couple the already-inflated pricing with our current economic situation and you’re looking at even more financial commitments for anyone building a home in the foreseeable future. Everything from materials to labor has seen an increase in price, and it’s important to keep an eye on the overall budget of your build.
Staying in contact with any contractors is key to ensuring you do not end up well over budget and shy of your home construction goals.
Property Values Are High
There’s a possibility that you are starting to look at available lots with grand dreams of what’s to come, and we say keep those dreams alive. Just understand that right now all properties—standing homes or empty lots—are still riding high on that surging real estate price wave.
This is another area where the global pandemic has created lasting ripples that are only starting to lessen over time. It’s expected that the ongoing inflated property values will stay in the higher range while buyer demand proceeds to outpace the inventory of for-sale properties. Over the coming months, we are anticipating a shift in buyer demand as inflation and interest rates have both gone up considerably.
This has already resulted in some buyers exiting the market to save more money for down payments and rethink their home buying strategy.
Check Your Mortgage Options
Preparing to build a home likely means needing to secure financing through a major mortgage lender, and there are plenty of different loan options out there.
These days you will want to investigate your preferred loan term, loan type, anticipated long-term costs due to interest rate hikes, and even the mortgage lenders themselves. Taking the time to carefully examine the different county, state, and federal loan programs for which you may qualify is a spectacular way to save money both upfront and way down the road.
Understand that the current raised interest rates are expected to stick around for the time being, so factor that into your long-term plan as an expected negative.
Residential Solar Panels Are Becoming More Affordable
Since you are looking at creating your new domestic oasis from scratch, this is the perfect opportunity to consider incorporating technological innovations that could benefit you and your wallet.
In 2022, federal tax subsidies of 26% are available for installations done by the end of this year, but they are scheduled to be reduced to 23% starting in 2023, a sizable decrease depending on the scale of your solar panel project. By contacting your local solar panel installers you’ll quickly discover that they are booked up for months in advance. That means doing everything you can to include the solar installation with your new construction and getting on their schedule now is the smart choice if you feel you could benefit.
It will take a while to recoup the full cost of your solar panel installation, but the savings you see on your power bill every month will add up quickly.
Your Partner When Building a Home in Miami
Are you thinking about or currently in the process of building a home in Miami and want a professional eye to help you out? Contact us at 706.870.1496!