Why New Construction Homes Are a Great Investment
Those planning to invest in real estate are often faced with the same dilemma. Which one is a better investment, older homes or new construction homes?
While both options come with their own set of advantages and disadvantages, many real estate investors choose to go with new construction homes due to the range of benefits they bring.
In this page, we’ll take a closer look at some of the key advantages of new construction homes as an investment opportunity.
Before you start
As a real estate investment, new construction is a niche that is somewhat overlooked, but is very ideal for those who want to separate themselves from the pack. While most investors set their sights on pre existing properties to “fix and flip,” those who opt to invest in new construction move towards the opposite direction, and typically get good returns.
It’s important to keep in mind however that new construction comes with its own specific requirements, rules, and intricacies. Instead of buying a home from the current owner or from another investor, you’ll be purchasing properties directly from builders themselves. This means you’ll need to do extensive research before you make any major decisions. You’ll need to personally visit other developments completed by the builder you’re considering, or get input, reviews, or testimonials from buyers who have previously worked with the builder.
Just like any investment, your success will depend on both the short and long-term goals you want to achieve. With today’s low interest rates however, the choice to invest in passive income property is often a smart move for any real estate investor.
The location of new construction homes
One of the biggest advantages of new construction homes is that they’re top-quality properties located in desirable, up-and-coming areas. You can’t put a price tag on investing in an area which features low crime rates, a safe family-friendly environment, and well-maintained streets and parks.
The people who rent in new neighborhoods tend to be very ideal tenants – they take good care of their homes and more often than not, pay their rents full and on-time.
Warranties and brand new appliances
New construction homes are typically under warranties provided by the builder. Depending on the builder, the warranties cover anything that sustains damage within the first year, or sometimes for an entire decade.
This means you won’t need to waste any time searching for bids from foundation specialists or calling electricians or plumbers in case something goes wrong. In case part of the home is damaged, it will be the builder’s responsibility, and not yours.
Additionally, appliances included in a new construction home are brand new, including the water heater and HVAC system. You won’t need to worry about calls from tenants in the middle of the night in case something conks out.
A wider range of options
Unlike short sales, wholesale listings, foreclosures, or REO properties, you’ll have more options to choose from if you choose to invest in new construction properties. You won’t find yourself caught up in a bidding war for a short sale property.
This means all of your focus will be put into finding a fully packaged property that’s ideally priced, in a desirable location, and is equipped with top-quality amenities.
Maintenance and repair
Older properties typically have more needed repairs and maintenance problems, including common headaches such as leaky roofs and pipes, subpar insulation, and faulty wiring.
Investing in a new construction home means you won’t need to worry about any of that.
No need for costly upgrades
One of the most significant problems with older homes is you always have to stay ahead of the curve when it comes to both aesthetic and functional features when you’re planning to sell it or rent it out.
For example, many people are looking for features such as spacious open living spaces and vaulted ceilings, which are impossible to implement in an older home without needing to spend a large amount of time and money.
With new construction homes, you get modern designs, new appliances, and other sought-after features which will be costly and time-consuming to replicate in an older home. The key is to work with experienced, reliable professionals who will help you throughout each step of the process, allowing you to gain as much information as possible about your investment.
Are you ready to start your search for new construction homes in Warner Robins, GA? Connect with us at Warner Robins Home Search today by calling 478.832.0388, or send an email to jasonleerealestate1(at)gmail(dotted)com