The most common advice given to people going into real estate in a slow market is that they should buy an existing home. While this may be a good idea, it is not the best option for home owners. Building a new home is actually much better than buying a house in times when the real estate market is on a decline. According to experts from Destin Custom Home Builders, there are a number of excellent reasons that make a lot of sense as to why you should build and not buy.
1. Materials are cheaper in a slow market
When going through a slow market, very few people are willing to invest in building houses. The few who do will put up relatively modest buildings for their residences. This significantly reduces demand for construction materials which is usually consumed in thousands of tons during a boom. In a slow market, discounts on construction materials are easy to get and it is even possible to access some credit from hardware owners and traders who are going through very lean times.
2. You can hire the best construction teams
With construction jobs being few and far between, construction teams will be willing to take up any and every opportunity to earn some cash. Under these conditions, you can easily hire the best construction teams in your area at a rate they would normally not accept. This means you get the best construction crew at the lowest rates possible.
3. It is easier to get permits
In a slow market, fewer constructions mean that there will be fewer applications for permits and other legal requirements. Destin Custom Home Builders reports that it is possible to have same day approvals on applications made in a slow market. This is a very different situation as compared to the huge backlogs that are characteristic of local authority offices in a hot market.
4. There is a higher chance of getting government assistance
Slow markets are usually as a result of tough economic times. During a recession, the government will often look for avenues through which it can stimulate the economy back to growth. One of the avenues that could be chosen is provision of subsidies to those building homes. If this situation were to arise, you could find yourself saving loads of cash as the government pays you for choosing to build your house in a tough economy.
5. Financiers will be straight forward with you
Slow markets are bad news for financiers. In such times they have to keep chasing after debtors who are unable to pay back what they owe while seeing very few new customers come on board. In this situation, the financiers will be very honest as to your chances. Unlike when there is booming business when they sometimes string you along as a back up client should they fail to get a better candidate. In a slow market, the financier will respond as fast as they can with an approval or rejection.
There are a number of other great benefits given by Destin Custom Home Builders as to why you should build you new home in a slow market. Most of these benefits are of a financial nature and are a great present to you in tough economic times.