|There is a common theme around the globe: home buyers and renters want brand new or newly renovated homes and are willing to pay a premium for them, often a large premium. It’s almost become an obsession. I’ve always been attracted to ‘projects’, but even I’m finding these projects more cumbersome these days. Here are my TOP 10 reasons I’ve identified for the NEW craze:|
1. Time is the Last Luxury: enjoying a home immediately is more meaningful to most. Waiting for a renovation or new build is time lost. The time and effort spent on a home build/renovation project is time you can spend on your career making the money to pay for a home, or enjoy with friends and/or family.
2. In a rising interest rates environment locking in to a rate has value.
3. When you buy a renovation project you need cash or (difficult to obtain) additional financing to renovate. One financed lump sum is quicker/easier.
4. With rising labor and materials costs, anticipated costs for renovation at closing are bound to rise. Most projects go over budget regardless.
5. Consumers want the least aggravation: older systems require more time, effort and money to service, maintain and replace.
6. New homes are usually much more energy efficient.
7. New/renovated homes have been adjusted to today’s lifestyle needs.
8. When you buy one apartment in a 50-unit building by a top architect/interior designer there is economy of scale: you would pay MUCH more for that quality of design for a single home project.
9. Decorating and furnishing is the fun part. Sorting through a complex permitting and approvals process is not nearly as much fun.
10. Seeing exactly what you’re going to get is much easier than imagining what could be.
I am sure that there are many more reasons to add. What ones would you add?