There are many idea's being presented here all of which are good. At this point I only have on input to make. If you should chose to go with a wood product, clapboards or shingles. I suggest treating them before hand before putting them up. Shingles can be dipped, and clapboards painted before installing them. By covering all sides with a couple of coats of stain or paint before hand you completely encapsulate the material. This makes a tremendous difference.
My father built a house and used wooden shakes for siding. He had all the shake double dipped in paint before installation. The result was a 30+ year old house with the original siding still in unbelievable shape, and it had only been repainted every 10 years or so....As the house stayed in the family, I helped my uncle paint the place when it was 30 years old.... we found no shakes that needed replacing.
In contrast I have a neighbor who has a property for about 20 years and has twice had issue with his clapboards, and had to go through and replace rotten boards because they chose to install and paint afterwards.
Another note I will make is the difference between painting and spraying stain or paint, I don't recommend spraying either for exterior finishes. In spraying applications the paint or stain is already drying when it hits the wood, and doesn't properly soak in. The last house my parents owned, had the original stain sprayed on... after about 4 years, my father and I restained the house, as it was starting to fade and look junky. After two and in some places 3 coats of stain, hand brushed, we where able to wait almost 10 years before the next repainting. Knowing the current owners of that house, it was repainted recently not because of issues resulting from paint failure, but because they wanted a new color.
Bottom line is this. Proper prep and application when painting the exterior of a home go a long way in determining the longevity of the applicaiton.
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