The real estate market, including the market in Commack New York, has been hit hard over the last couple years. This nationwide recession has absolutely had an impact on the real estate market, creating opportunities for those who are ready to purchase.
Interest rates are at historic lows, making real estate in Commack more affordable than ever. Interest rates usually range from 4 to 6%, about half of what the rates were just a decade ago.
If you’re getting ready to purchase a house , whether you are a first time home buyer or moving from an existing house, there are several questions to ask yourself:
Is buying a house now a smart long-term investment? Given that the real estate market has fallen 20 to 30%, you’re buying a house at deep discount to prices from three or four years ago. You’re purchasing at $.70 on the dollar. When prices return to normal levels, you will see an appreciation of almost 50%.
Are you a smart investor? Most people are not. They lack the discipline to make long-term investments, and often hold off investing and saving-until it is too late. When you invest in a home, you are making a long-term commitment. This, in a very real sense, represents forced savings. Every month, you have the opportunity to build equity in your home as you pay into your mortgage. Historically, real estate appreciates significantly over time. Taken with a long-term view, real estate remains one of the best investments available.
Am I buying in the right area? Commack New York is a wonderful area to reside in and to raise a family. An established community, it provides the resources of a major suburb with high quality of living standards. With new construction, you are able to get the house of your dreams. The builders have designed beautiful homes, and very often you are able to customize to suit your taste. Given the current economic conditions and reduced real estate prices, now is a great time to buy your first house or your next house.
Are there advantages in buying new construction? Yes. New construction tends to be larger, more current and can easily be tailored to suit your taste. In contrast? When buying an existing home, you must very often go through expensive renovations to customize that house to your needs. New construction offers you the opportunity to make those alterations before the houses built. Generally, it cost 1 to 3 times as much to make changes to an existing house as opposed to simply modifying the plans on a house that is yet to be built.
What questions should I ask of a home builder?
If you’ve never bought a new home before, there’s several things that you can ask the builder:
1. Does the builder have experience within the county? To build a home, you need permits, zoning approvals, and compliance with county and local ordinances. An experienced builder is aware of these requirements; and inexperienced builder is not. Mistakes here can be very costly and presents massive delays.
2. Does this builder put up one house at a time, or have experience in building developments? Often, you are better off with the builder who works on multiple developments at once. While this may seem counterintuitive, a small builder who only handles one task at a time works with a small crew. If any member of the crew-a plumber, carpenter or electrician-is unavailable, your construction may come to a stop for weeks. In contrast, a larger builder has multiple craftsmen available to him, and can deliver a steadier construction project.
3. Do you want to be in a new neighborhood or a single renovated home within an old neighborhood? The neighborhood around you not only affects the resale value of your house, but also impacts your lifestyle. If you are in a community with dilapidated homes, and yours is the only new construction in the area, your home will feel out of place. If the builders will bring a new development, and you are one of the new homeowners in that new community, there is a much better fit for you and your house. Additionally, all of the people living in that development will be moving in at about the same time and will have the opportunity to form friendships and relationships. If you are moving into a block with families that have lived there for years, you may be the outsider and maybe quite some time for you to “fit in”-if at all.