Why Waiting to Break Ground Might Cost You More in Today’s Housing Market

If you’ve been worrying over financial predictions regarding rising or falling interest rates, you’re not alone. We’re all wishing the rates would drop to make building more affordable right now.

Unfortunately, waiting around to see what the government is going to do next quarter… or the quarter after next… or the quarter after that one, can cost you even more in the long run.

Here’s why waiting to build until the maybe-someday moment rates drop might not be such a great idea:

• Changing market dynamics mean that a lower interest rate might not guarantee a better deal
• Future fluctuating construction costs might cost you more than the potential savings from lower interest rates
• The property you want might get snatched up by another buyer
• You’re losing ground on equity growth by putting off till tomorrow what could be built today

Let’s press in on each of these issues.

Unpredictable Real Estate Market Dynamics

Real estate markets can be unpredictable, and waiting for interest rates to decrease might not guarantee a better deal. While you’re waiting for interest rates to drop, property prices could rise, offsetting any potential savings from lower interest rates.

Another challenge of an unpredictable real estate market is that economists are just making their best guess on the economy. Rates might go down… or they might go up! Locking in a fixed-rate mortgage now could provide stability and protection against future rate hikes. This can offer peace of mind over the long term, especially if interest rates continue to rise.

Rising Construction Costs

Likewise, delaying construction could lead to increased building costs due to inflation, rising material prices, or labor costs. A lower interest rate could save you pennies and cost you dollars.

Timing Up Your Dreams with Property Availability

When you’re investigating the best timing to start building, you need to ask yourself, how long are you willing to wait to invest in your dream project?

Land availability is a limited resource, especially in sought-after locations. If you start the building process now, it ensures that you have more options and can secure the property you want.

Building Delays Also Delay Equity Growth

Building a home allows you to start building equity immediately. While high interest rates might increase mortgage payments, owning a home can still be a valuable long-term investment, as property values tend to appreciate over time. And if you’re in a rental situation, the sooner you’re able to get into your new home the more that long-term investment will pay off.

And Don’t Forget Tax Benefits

Homeownership comes with various tax benefits, including deductions for mortgage interest payments and property taxes. Even with high interest rates, these tax advantages can help offset some of the costs associated with homeownership.

There are a lot of financing options out there to help you make the dream of building your custom home come true. Don’t let high interest rates delay your dream home any longer. Book Your Design Meeting with Ivan Yoder Builders to start moving your dream into reality.