Folks looking to break into the real estate industry will often face the question of whether to invest in older homes or new construction homes. While there no hard and fast rules, new construction properties have some unique benefits that may make them an attractive option for real estate investors.
Following are four advantages to new construction homes:
- More Appeal
Whether renting or buying, people love the feel of a new home and can more easily see themselves living in the space. In addition, new homes are more likely to be located where a growing segment of buyers want to live – the suburbs. The covid-19 pandemic has also helped accelerate this shift in preference as people have grown increasingly wary of touring occupied homes.
- Less Maintenance
While some investors enjoy buying fixer-uppers and taking on large-scale renovation projects, some people would rather invest in a home that may be ready to rent or sell as is. Old homes tend to have a lot more maintenance issues from bad insulation, plumbing, and wiring.
- No Upgrades Needed
New construction homes feature modern trends in design and functionality, including open spaces, laminate floors, and brand-new appliances. Replicating the aesthetics and contemporary luxuries in an older home can be prohibitively costly and labor-intensive.
- Great Warranties
Most newly built homes come with a builder warranty that covers items that are typically a permanent part of the home, like concrete floors, plumbing, or electrical work. While the length of the coverage varies depending on the component of the house, some builders give coverage for up to ten years for “major structural defects,” sometimes defined as problems that make a home unsafe and put the owner in danger.
Are you ready to plunge into investing in real estate? RLG has the tools and resources at its disposal to get you on your way and not waste a moment of your time. Call us today to learn more and experience firsthand the dedicated, personalized customer service and undivided attention that RLG has to offer!