Is A New Home Construction A Good Investment?

new home constructionA new home construction can be an excellent investment-especially for commercial and residential property owners who are looking to avoid the ongoing repairs and maintenance that inherently come with older homes. Real estate investors are looking for properties that will return a decent amount of their investment (ROI).

The Cap Rate (or Capitalization Rate) is a simple way to see if an investment will make money. The Cap Rate (or rental income minus expenses) will show you how much money is coming in and going out.

High rental demand and new construction property can yield excellent returns. Continue reading to find out about the advantages and disadvantages of investing in a new home whether this strategy suits you.

WHAT IS NEW HOME CONSTRUCTION?

A new construction property is a home that you buy directly from a developer or builder.

There are many advantages and disadvantages to buying new construction homes in Myrtle Beach SC. Before making any investment decisions, it is important to do extensive research. It is a smart idea to look at the past properties of the developer and see how they have held or appreciated over time.

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Design Features For a Family-Friendly Custom Home

custom homeYou don’t have to choose a chic home plan if your custom home is just for you and your significant other. But if you are building a home for yourself or a partner, it doesn’t really matter if it’s not kid-friendly. If you have children, you will want a house design that is both family-friendly and has logical features that can be used by the kids.

These are some features you should look out for in a family-friendly design to ensure your loved ones and you feel at home long term.

A Mudroom in your Custom Home

Children are not as careful about what they bring with them in their shoes. This can lead to chaos in your home. A mudroom acts as a catch-all between the entryway and the main area of your house. Some people decide to include a mudroom off the front door. This is where children can leave their shoes and coats behind, and it won’t be the first thing they see when they enter the house.

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Are you building a new home or buying an existing house?

custom home buildersThe current demand for new houses is “rocking” but the supply is “reeling.” Potential homeowners have had to weigh the benefits and drawbacks of buying an existing home over building one. Not only that, they had to consider if they want to hire a custom home builder or not.

Many post-World War II generations have considered owning a house an integral part of their “American Dream.” The “perfect storm” of circumstances has made the American Dream seem more like a nightmare to homebuyers. These include historically low mortgage rates, the largest ever population cohort – those born after 1980; starting families; a pandemic which fundamentally changed how families work and educate their children; and low yields on traditional investments that encouraged residential real estate investment. These conditions combined created a demand for houses that was rarely seen.

Do you have thoughts about building a home? Ask your custom home builder Myrtle Beach to explain the benefits of brick construction. 

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WHAT TYPE OF HOME BUILDER DO YOU NEED FOR YOUR DREAM HOME?

home builderIf you want your dream home built, you need to look for a home builder. They can build a house where you can spend your whole life in. This might be the house where you raise your kids, have great memories, and live out your days. Among the many things that you have to consider when choosing a builder is the type of professional you need for your house.

There are two types of home builder that you can choose from. These are the custom home builder and the production home builder. These two builders construct homes but using different processes. So, when you need a home built, which among these two should you choose? To answer your questions quickly, it’s basically based on your requirements as well as the amount of cash you have to spend.

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10 Lessons Learned On a Custom Built Home

custom built homes myrtle beachIt started out as a Saturday afternoon spent looking at model homes. But it soon became a commitment to build a house. My husband and I became a couple of “looky-loos” over the course of one year. It’s now a humorous anecdote that we share with our friends and family. But, it was a different story. The best thing about hindsight is that it’s always 20/20.

We were young and had all the energy, but that didn’t stop us from falling for some of the pitfalls when we built our new home. Would I change my experience? No. What if I had to change the number linen closets in my house? Absolutely. Yes. After more than a decade living in our custom-built home there are certain things that I wish I knew back then.

Lessons learned about a custom built home

1. Your schedule should be a guideline.

The build took over a year. Our optimistic contractor initially gave us a shorter timeline and we expected to complete the project in nine months. Although I believed it was a strict schedule, it was actually a guideline. The timeline was not within our control due to bad weather, scheduling issues, and building problems. I wish I had understood that the schedule was subject to all contingencies. Understanding that your ideal home building schedule might not work out is a key aspect of what you need to know.

2. Plan for your future.

My husband and I were just 21 and 25 years old, and we weren’t very experienced. We could not even imagine how life would be with children when we designed our home. However, it was true that we had three children in the span of 10 years. Things that worked well for us as a couple without children are not ideal right now. While we designed our home with the “right now” mindset, it would have been more beneficial to think about the future in five or ten years.

3. Before you move in, finish.

Although this may seem obvious, it is important to remember that you are ready to move in when the work is done. If you’re unable to move in due to the delay caused by plans for finishing your bonus room or landscaping your backyard, it might not be as important. It would have been so much easier to finish everything before we moved in, since the last few items took literally years to complete. It’s easier to complete projects now if you have contractors than to pay them later. Get all the little jobs done before you go to bed each night.

4. Make sure to plan for storage.

custom built homes storageNobody gets so excited about planning their storage space. The master bathroom finishes and choosing the cabinetry details get the most attention. However, I would bet that homeowners would prefer more storage space to a deeper tub. I wish I knew that storage is prime real property in a home. Although planning for storage may not be the most exciting aspect of the building process, it can have a significant impact on your organization and lifestyle. When designing or building a home, keep this in mind.

5. Contractor research.

Before he could even set foot on our property, we hired a roofing contractor. Rookie mistake. He ran off with the money and we never heard from him again. We didn’t do enough research on all our contractors and we regret it. Although we were lucky in some cases, it was clear that we should have sought out reviews and referrals before entering into business with contractors. It would have saved us both time and money.

6. Sweat equity is the king.

My husband enjoys telling houseguests stories about how I grouted our tile when I was nine months pregnant with our first child. Although I felt it was cruel and unimaginable punishment at the time, now I appreciate the hard work we put into our home. This was not only a cost-saving strategy, but it also helped speed up the process. We were able, instead of waiting for contractors and having to work with them on the schedule, to do some of the work ourselves. While you should leave some things to the custom built home professionals (no self-plumbing please), don’t be afraid of helping out where you can.

7. Fixtures are worth the investment.

When building a new house, it was difficult to decide where to spend money. There were many trendy items that I would have preferred to spend money on. For example, decorative pillows. But in the end it was worth investing in fixtures. These fixtures are the ones that will stay put no matter what you do to your house. We have been able to change the finishes and colors without needing to do major repairs or make major renovations by investing in better-quality fixtures.

8. Go neutral.

My husband and I would probably agree that the dark green is our greatest design regret. We used two-toned paint throughout our house. The bottom was dark, mossy, and the top was neutral. Although the beige has lasted beautifully, we have already painted over it. While it worked for a while, redecorating was difficult. It would have been better to choose neutral colors and change accents than use a single color throughout the house. I don’t know how much primer we spent, let alone paint to fix our mistakes.

9. You will spend your money.

We were able to get a construction loan which covered the major items. We didn’t consider the costs we would have to pay out of our own pockets. We could make bank draws to pay the foundation and drywall. But trips to the hardware store to buy screws and sandpaper on the dime really added up. A contingency fund to cover construction costs would have saved us a lot of stress, as we look back.

10. It can be stressful, but it is rewarding.

custom built homesAll you have heard about building relationships is true. It’s a common joke that building a home together will not cause marital problems. Building is more than choosing a home. It’s a constant tug-of-war of needs, wants, and compromises. When you are debating about floor layouts or fixture finishes, it is easy to let stress get to your head. It’s much easier to see the real value of your home – one that you love, can grow in and enjoy. You can compromise on other options if you pick your three biggest building issues. My husband and I often discuss building again. We’ve learned so many things that it won’t be as stressful the next time. There’s something special about living in a home you have built from scratch paper. It’s full of memories and life. The rewards of building your own home are not for the faint-hearted, but those who are willing to do it can reap the immense rewards.

The bottom line

It might seem daunting to build a house. It can be a rewarding experience for your family if you plan for the long-term, and put in some effort. With some flexibility, planning is key. Don’t forget to allow for plenty of storage. Trust me.

Dawol Homes is you local custom built home specialist. We have been around for years and will help you through the entire process from land selection to design to finished home. Call us today to discuss your dream home.

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Dawol Homes
9404 Hwy 17 Bypass,
Murrells Inlet, SC 29576
(843) 294-2859

Dawol Homes Sales Office
3100 Dick Pond Rd # E
Myrtle Beach, SC 29588
843-294-2859

We build homes in: Cypress River Plantation, Waterway Palms, Waterbridge, Murrells Inlet, Collins Creek, Bellwood Landing, Carolina Forest, Plantation Lakes, North Myrtle Beach, Socastee, Surfside Beach, Pawleys Island, Litchfield Plantation

How to stay on budget when building custom homes?

custom homesCustom homes can have its advantages and disadvantages. A custom home gives you the freedom to design your dream home and may even offer the most value for your money. It’s easy to go too far and not save any money. To build your dream home, it’s important to follow these steps.

Tips When Building Custom Homes

Do Your Research

This is the most crucial step in building a custom-built home. It is important to find a trustworthy builder who will help you navigate the building process with ease and care. You want someone who is knowledgeable about the subject. A good builder will be able to provide high-quality materials at a fair (or even cheap) price. Your builder should care about your vision and be able to help you realize it. This is true even if you’re going to hire a contractor.

Look through the directory of local builders and contractors. Talk to them about your expectations and how they can help you realize them. After the conversation, ask them for an estimate. Make your decision based on the way you got along with them and the price they gave.

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The Best Time For A New Home Construction

new home constructionWinter is coming soon and spring will follow once that’s over. Spring brings warmth and new life. Spring is more to some than just that. Spring is the best season to start building a new house. It is the best season to complete building constructions quickly without having to deal avec many delays so that you can move into your new home sooner. Here are some reasons spring is the best season for new home construction.

New Home Construction Tips

More daylight

We begin to transition back to winter when the summer solstice occurs in the middle to the latter part of June. This means that the night falls more quickly as the days get shorter. Your custom home builders will be able to make the most of the daylight during spring by starting the project in the morning. But, more sunlight can also help you complete your new home on schedule.

It’s not too hot or too cold

You should not wait too long before you begin construction on your custom home with the help of Myrtle Beach home builder. Weather conditions and temperatures can become dangerous for builders. You may need to adjust your schedule if the conditions are too difficult to work in. You may have to deal with unexpected delays due to heat waves and severe summer storms, as well as snow and ice in winter.

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What Are Some Benefits Of Building A Custom Home?

custom homesThe first question you will have to ask yourself when you are considering moving into your own home is whether you should buy an existing house or choose custom homes.

A home is more than simply building a house. A home is a sanctuary that you can call your own. It’s a place to relax, unwind, make memories, and share your joy with family members.

You are taking your entire family on an exciting journey when you build your home. While there will be ups and downs along the way, you’ll soon realize that building your own home is one of your best investments for your family.

Your new home should be unique. It should be able to satisfy all your needs and reflect your personal taste.

Here are six reasons why a custom built home is better than a pre-built one.

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What Should You Do Before You Build Your Home?

custom homesBuilding custom homes is not just about laying the foundation. It’s much easier and fun to build a home when you’ve got a plan and a competent builder. These five steps would help you in avoiding expensive mistakes during construction. Ask questions and share your progress with others who have been through this process.

Budget Planning

Begin by knowing who much you can afford as soon as you start to consider building your house. You should have a realistic estimate of what you can spend on a home and how much it will be to build one. Budgeting is about finding the right balance between your needs and a realistic estimate of what you can afford.

You will likely need a construction loan or a mortgage. You can find out the maximum loan amount you are eligible for based on your income, and other financial obligations. Most banks and financial institutions will prequalify you to receive a construction loan. This will give you an idea of how much money you can spend. This early stage also includes determining the cost of various elements of your new home, such as the land, architect or designer, general contractor, appliances, and interior features.

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How to choose the right kitchen appliances for your custom home

new home buildersMany features are required to make a home comfortable and functional. Of course, you need the help of new home builder to get this done. Appliances are multi-purpose items. They are both functional and decorative and can make your life easier, enhance your kitchen’s appearance, and increase your property’s value. Here are some facts to help you choose the right washing machine or refrigerator.

Tips From New Home Builders

Status

Stainless steel is still a popular choice when it comes to appliances for your home. It is considered a status symbol. Because of its sleek, shiny appearance stainless steel is elegant. Although there are many models made of stainless steel, each model can have a different exterior due to its nickel content. For those looking for a masculine, rich look, black stainless steel is gaining popularity.

Working with an interior designer or general contractor is the best way to select the right products. This will ensure that the product blends well with your decor and looks consistent. Every product should be the same style and appearance.

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