- Erin Farnsworth
Should I start a New Construction project in 2023?
The answer is YES! Although rising construction costs are the talk of the town, you are not saving money by waiting. In fact, it's quite the opposite. The longer you wait the higher the prices could be.
There is great news about building now, actually, SAVINGS! The State of California and Federal Government are offering some amazing incentives and tax credits, but time is of the essence. Some of these programs already have an expiration date set within the next year and it's unclear how long these programs will be available.
With Government sponsored savings, tax credits and working with the right builder, you can still come out ahead!
Here are some tips to help with your 2023 planning:
Government Rebates and Incentives
Builders with energy efficient upgrades in their plans will reap the benefits in 2023. Homes that are built to have a lower impact on our environment are being rewarded with savings. By adding upgraded HVAC systems, water conservation elements, upgraded doors and windows, solar(30% savings!), smart climate control, and so on you can tage advantage these benefits.
California (and Los Angeles), and the Federal Government offer many different types of Incentives and rebates for upgrading to a lower-impact home. These programs are easily available and can save you HEAPS of money! Our take is, get the money back while you can! In no time these upgrades will become simply a requirement (for all new construction/remodels) and the rebates will be gone. Here are just a few:
At this moment in time, there are more tax credits for low impact upgrades than ever! Here are some articles to help you find where you can save money on your taxes after post construction.
Tax Credits for New Home Construction
Planning and Budgeting
If you’re planning on undertaking any construction projects, it’s important to budget accordingly. Costs can add up quickly. This is why getting a realistic bid is extremely important. Delays could end up costing you tens of thousands more than expected. Do your research, check reviews, check license status, and meet on-site!
It all starts with the proper plans and a good contractor, understanding that this one-time investment in choosing the perfect team will give you the best results. Running the cycle of a building project must be managed properly. So even though you think you may be saving more by going with the lowest bid, it could cost you a lot more in the long run.
What’s the answer?
Build now! Construction costs are unlikely to go down anytime soon, and in fact, are predicted to increase over the next few years. By planning ahead, budgeting accordingly, and taking advantage of government programs/tax credits, you will have a successful project and an on-budget result.
Give us a call! We'd love to hear your plans!