Construction Loan Article Center
Tuesday, July 04, 2006
Many cities have been around for years before community or city planning even existed. These older cities simply evolved into the communities they are today and as a result even retain a singular charm. It is therefore a common misconception that all communities are or were, planned.
Planned communities are those that have specific styles and amenities that factor into the package price. Amenities include things such as greenbelts, bike trails, landscaping, schools, and even swimming pools and shopping centers - all of which are dependent upon the size and location of the community itself. These amenities are for various reasons such as beautification in order to encourage potential buyers and new home construction or even in order to draw in commercial business. A homeowner's association pays for many amenities like swimming pools and greenbelts while taxes cover the costs of others.
When considering amenities it is also important to consider your own individual tastes and lifestyle. Some planned communities include more costly amenities, which may prove unaffordable to a homeowner. Many amenities offered in a planned community may be unimportant to your lifestyle. Careful selection is therefore vital to avoid overspending.
The cost of the homeowners association can be substantial and is included with the principal, interest, taxes and insuring when qualifying for a construction loan.
Homes in planned communities are more likely to be consistent because decisions about home design and landscaping are made communally. Some homeowners may find this method acceptable because it ensures an attractive environment yet others may feel as though their rights are infringed by it. Therefore, before you select the type of lot you want it is important to know your own feelings on this matter.
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That's an interesting question. The way it works is as follows: the costs of bringing utilities and roads to an unfinished lot are very high. In this sense, the first person to build is actually paying for other people who will build on that same location later on. Therefore, although it is possible to purchase an unfinished lot, the cost would be so high for the individual building his or her home that it is unadvisable. There are land developers whose specialty is to prepare lots for building. They deal with things such as zoning and/or soil issues, roads and utilities being made available to the site and developing a building pad. More than likely, these lots are found in a planned community. It is normally difficult to obtain a construction loan that will include the purchase of an unfinished lot where as you can obtain a construction loan that will include the purchase of a finished lot.
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