TSC Staff
Part 8. Test-Drive Your New Home
New construction doesn't necessarily guarantee high-quality workmanship. The recent U.S. building boom of new houses has left some homeowners dealing with serious construction defects.
- Poor insulation has been one of the most pervasive construction problems in many new homes, resulting in water intrusion and mold.
- Extended reconstruction can cost you a lot of wasted money on mortgage payments, taxes, insurance, homeowner's fees, and if it's an investment property, lost rental income.
- When buying a property directly from a builder, do your due diligence. Prudent steps include checking the builder's recent track record of quality, getting a professional home inspection before you buy, and making sure that the purchase contract protects you in case any major structural problems arise.
The cost of homeownership involves more than simply making your mortgage payments. The ongoing expenses of maintaining real estate have a direct effect on how much property you can really afford. Key Points:
- Broad and somewhat fixed ownership costs can include homeowner association or condo association dues, property taxes, and city or county taxes.
- More property-specific and variable costs can include utility bills, property insurance, regular maintenance and repair, and the eventual replacement of major appliances, components, and systems.
- When evaluating the size and cost of your potential home, include operating cost estimates in your calculations. Plan to set aside a reserve for major scheduled replacements.
RSS
