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Those that are eligible for the VA Loan can utilize their benefit to build a brand-new home. New home construction gives you the chance to pick the exact location you would like to live, and you get to select every detail as well. From the colors of the walls, types of flooring, and the floor plan- it is all up to you. There’s no doubt that a brand new, quality home benefits you and your family. But have you ever considered what this brand new, quality house does for the community?
Building your own home has many personal benefits, but you are also doing your part to enrich the community. Generally speaking, if new homes in an area are being built, it makes that area a desirable location which causes the property value in the surrounding area to rise. Although property value increasing is beneficial to everyone in the neighborhood, there are also many other benefits of new construction in a community to consider.
Increase in Property Value
Let’s say you choose to build a home on a lot that is in an older neighborhood. Once you have a higher-priced home in an area, the property value in the surrounding area will also increase. The study “The Effect of New Residential Construction on Housing Prices” which was featured in the Journal of Housing Economics, found that “the construction of new houses within one-quarter mile appears to have a positive effect on the selling prices of neighboring existing houses. In particular, the results indicate that increasing new construction nearby has a significant positive impact on the price at which a house will sell. Each newly constructed house within one-quarter mile of the subject property and whose sale occurs within a year prior to a subject house sale increases the sales price of a house by 0.27%.”
You may start building your new home and find that others start renovating older properties, or that builders come into empty lots like yours and build new houses too. Either way, the property value will increase, which is useful for those in the area who will eventually sell. If you ever choose to sell your home, you will be able to sell it for more than what you paid for it.
With this being said, it is important to note that sometimes you may find a neighborhood that has lots of new construction that hasn’t finished or is on hold for whatever reason. In most cases, these areas may experience a negative impact on property value. Working with a real estate developer can keep you out of those situations and provide you with areas that will be developed in the area or will suit you best. It is also important to note that an increase in property value results in a rise in property taxes too.
Increased Property Taxes
As the value of home increases in an area, it results in higher property taxes. Many people dislike high property taxes, but they should be embraced. Do you want a neighborhood that is well kept? Good schools? Safe roads? Or a safe community for your children or grandchildren to grow up in? All of these benefits are the result of an increase in property taxes. As property tax increases, the government has more funds to provide your area with better amenities. High property taxes benefit many people as they create new jobs for people in the area and better facilities that will attract new residents and keeps those in the area safe.
New Construction Creates Jobs
New construction will not only help enrich the community by increasing property value, but it will also create jobs. Not only will a team of construction workers be employed to work on your house or other new construction in the area, but as the community continues to grow, the businesses in the area get busier. Depending on the growth in the area, you will start to see a higher demand for grocery stores, gas stations, shopping centers, and other amenities.
How to Get Started
So, now that you understand how you can enrich the community by building a new, quality home, you may be wondering where to begin. As a United States Marine, I have personally been shocked to find out about benefits that I had no idea even existed. Many people have questions about the VA loan like “What can I buy with a VA loan?” or “What is a VA construction loan, and what can I do with it?” I have found that many people with these questions are unaware of the opportunities that are available to them. An experienced professional can work with you to clear up any misconceptions and guide you in the right direction when it comes to your VA loan and building your dream home.
Building your dream home is exciting, but it also comes with challenges. From the very start, picking a lot can be the hardest part of the process. A lot that you want to buy might have restrictions for the plans you have for your new house. You may be interested in energy saving efficiencies like solar energy and discover the many challenges there are when it comes to selecting a lot. An expert can ensure that you choose the lot that is best for you and your plans while making the most of this opportunity with the VA loan.
Are you a veteran yourself, or do you know a veteran who can benefit from this information? I ask that you share this information to help others. If building your dream home is a thought of yours, don’t hesitate to reach out to me. If you want to learn more about how veterans using their VA loan enriches the community, contact me, and I would love to talk more about it.
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