Tuesday, April 2, 2013

Purchasing a Bigger, Better NOVA Home


Have you ever wanted to purchase a larger, newer home in the NOVA area but didn't think it was possible? Well, according to the National Association of Home Builders, you can!

A new study released by the organization says home buyers can purchase a more expensive, newer house and still have the same operating costs as owning an older, existing home on the NOVA housing market.

The NAHB took information from the Census Bureau and Department of Housing and Urban Development's 2011 Housing Survey to determine how utility, maintenance, insurance costs, and property taxes vary depending on the age of the home.

According to the survey, houses built prior to 1960 have average maintenance costs of $564 per year. While homes built after 2008 actually have average maintenance costs less than half of that number— $241. Homes built prior to 1960 have operating costs that average nearly 5 percent of the home's value while homes built after 2008 average less than 3 percent.

Another factor the study considered was the after-tax cost of owning a home by its age. "A buyer can afford to pay 23 percent more for a new house than for one built prior to 1960 and still maintain the same amount of first-year annual costs," according to the NAHB.

While new homes in Northern Virginia area do tend to cost more than existing homes and the mortgage payments are likely to be higher, the lower operating costs of the newer home will give buyers annual costs that could be about equal if they purchased a lower priced, older home with a smaller mortgage payment but higher operating costs.

"Home buyers need to look beyond the initial sales price when considering whether to buy new construction or an existing home," said the NAHB Chairman, Rick Judson. "They will find that with the higher costs of operating an older home, they can often afford to spend more to buy a new home and still have annual operating costs that fit their budget."

Source: National Association of Home Builders

Earle Whitmore
Long & Foster Real Estate, Inc.
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