The age-old debate of buying a home versus renting a property has evolved over the past few years. Buying a home is a major personal and financial goal that people work toward and celebrate being able to accomplish. Home ownership allows for personalization and a sense of stability that a rental property can’t. It’s also the largest investment that most people will ever make.
Renting an apartment or home also has its advantages, like a shorter-term commitment than buying, which may be needed for certain timelines. Whether you’re new to this conversation or have been debating renting vs. owning for some time now, there are a few basic questions you need to ask yourself when deciding what’s best for you and your family. However, before we jump into those, Homes by Taber wants to teach you about the most important deciding factor when it comes to purchasing a home: appreciation.
According to Redfin, appreciation is the increase in a home’s value over time. It’s calculated based on a few variables, including the fair market value of comparable homes for sale in the neighborhood, the local real estate market and any improvements made to a home. When you buy a new-construction home in a neighborhood filled with other new-construction homes, your appreciation will increase more consistently because property values are always increasing. Whereas buying a used home in a neighborhood with older homes will not lead to appreciation as quickly, unless all of your neighbors are renovating and adding significant value to their homes with improvements that are recognized by appraisers when calculating values.
Homes by Taber understands this pattern, and that’s why we take it all into consideration when building houses and designing neighborhoods. Because our homes are Proudly Overbuilt, we’ve garnered an award-winning reputation around Oklahoma and Taberhoods are known for being the place to live (and sell) in the Oklahoma area. So when your family is ready to move into your next Taber property, you can rest assured knowing you’ll be able to sell it quickly and for more money than what you paid for it after some time has passed.
Now that you know the basics of appreciation, we’ll walk you through the questions you’ll have to answer when deciding whether you should continue renting or commit to purchasing your first home. We can also help you understand the benefits of buying a new home instead of buying a resale property.
This is the obvious and most important question to ask yourself, but many factors go into answering it. Potential home buyers should consider down payment amounts, closing costs and renovation budgets (when you buy resale).
If you think you can’t afford to buy a home because you’ve always been told the ideal down payment is 20%, we have some good news: you can purchase a home with a down payment as low as 3% of the purchase price. Your lender can help you figure out exactly what you should put down based on your available assets and other expenses.
In addition to your down payment, buyers will also need money to cover the closing costs, which is typically about 3% of the purchase price, but varies depending on each homeowner’s financial situation and the home they are purchasing. Buying a new-construction home also means you don’t have to worry about throwing additional money toward unseen issues with the foundation or visible issues like an outdated kitchen or paint colors.
Lenders will also want to know about your credit score and debt-to-income (DTI) ratio. With record-low interest rates, there’s never been a better time to buy a new home. Homes by Taber does not provide loans, but can refer you to carefully selected, well-qualified local lenders who may even provide lending credits to use towards your closing costs. Check out our mortgage calculator to get an estimate on just how much you’ll pay for one of our homes, based on current loan rates.
If the lease on your current rental is nearing its end, you might think you don’t have enough time to purchase a home—but that’s where you’re wrong, especially if you consider a new-construction home. The resale market is a bit more unpredictable, and you can end up in costly bidding wars that push homes out of your price range, making your timeline a little more stressful. You could also be forced to plan your move around the current owner’s schedule, which may not work for you.
Homes by Taber has an inventory of quick move-in homes and homes in various stages of construction throughout the Oklahoma City area. Are you thinking ahead by starting your research early? Great move. Browse our floor plans and communities to find what you like, then contact us to get started on the process. We’ll work with you and your schedule to build the home of your dreams in a reasonable amount of time, whether that is a home that is already completed, a home that is under construction, or starting from the beginning and building it all.
Do you know where you want to be personally and professionally in the next few years? If you’ve always dreamed of planting your roots and raising a family in the OKC area, then buying a home here would be the best possible investment. If plans change and you do need to move—either across town or across the country—you’ll know your Taber home will perform well in the resale market thanks to our reputation of industry-leading standards on quality, health, technology and craftsmanship.
36% of Taber homeowners are first-time homeowners while the rest make up move-up buyers and downsizers, or “right sizers” that are finding their home to retire in. If buying new, finding a reputable builder with floor plans that are inclusive for your current lifestyles is key. Does the home have an office space or room for the kids to play outside? Does it have space for storage? If you are buying a used home, will you have to remodel later to accommodate your lifestyle or is everything you need already there for you? Finding a home that supports your personal and professional goals can make the difference between your satisfaction down the road.
If you’ve decided to jump into the journey of homeownership, Homes by Taber can help make the process simple from the start. Once you consult with a trusted lender and learn just how much home you can afford comfortably, we can show you The Taber Difference and help you make the best investment. Contact us today to learn more.