Here’s the Rundown for today:

📕 Read: The 5 Myths of New Construction Homes

🎧 Listen: Episode 005 - Real Estate Investing with $10K

Here’s 5 Myths About Building Your Next House

Myth #1: Brand New Means Low Maintenance.

Myth: If I have a new home I won’t need to constantly put money into it.

Reality: Even new homes have issues. At the end of the day, humans build these things and as materials become less reliable, things like appliances, carpet, and siding sometimes fail as soon as 2-3 years.

Myth #2: I Only Need 3-5% Down Payment.

Myth: I should just plan to just save for my down-payment money.

Reality: Closing costs, grass, sprinklers, fence, patio, deck, window coverings, furniture items, washer & dryer. Plan for more than just the DP

Myth #3: DIY build for the win

Myth: I can GC my own build and save a bunch of money.

Reality: Builders usually only take 8-10% profit on a build and make money on trades like framing & carpentry. Lack of experience with material suppliers and sub-contractors can elevate price fast. Not to mention any mistakes…your “margin” can go quick.

Myth #4: Don’t get sold on energy efficiency items. 💡

Myth: There's a misconception that incorporating energy-efficient features is too costly.

Reality: Investing in energy-efficient materials may seem pricey upfront, but long-term utility savings and State/Federal tax incentives often offset initial costs over time.

Myth #5: Custom Homes Always Go Over Budget.

Myth: Custom homes are believed to be more likely to exceed the budget due to endless customization options.

Reality: If you are very clear upfront with your build design OR you pick a design that’s already been built before, you can really keep costs reigned in.

BONUS Myth: Going Directly to a Builder Will Save Me 💲💲💲.

Myth: Cutting out a buyer agent/Realtor when building will save me from paying commission/builder will give a discount.

Reality: Generally, builders include the costs for commission in their base prices so if you don’t use representation, they keep more profit.

🤔 QUESTION: What’s 1 New construction Myth you would add? (Comment below)

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If you are a budgeting nerd…

We LOVE using everydollar in all our businesses. If you’re looking to keep more of the money you make, check out Everydollar here. 

Ever heard of Tiny House Investing?

Robuilt is an awesome follow on Youtube, check out his video on How much his tiny home airbnb made in 1 year. 

Make Paying Off Debt Fun… 💲🤑💸

Here’s a fun little tool to make debt goals more fun, check out Money Games on Amazon.

YOUTUBE

The Inspection add-on that’s well worth the money.

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