Whether new construction homes are a good investment is a question that bothers many potential investors in the highly competitive real estate industry. Many investors are torn between old dilapidated homes and new construction homes. New construction homes are expensive but this does not mean that they are a bad investment. In fact, many homebuyers know this and are ready to overlook the cost, at the expense of many other advantages that come with new construction homes over old ones. A good research about the builder is however needed since you will be living in your home for quite a long time. This article looks at whether new construction homes are a good investment.
- They Require Less Maintenance
Most new construction homes have new appliances such as an air conditioning system, refrigerator, lighting system, water system and gas system. In addition, everything else is new, including the flooring, the walls and the bathroom. It therefore means you will not incur extra costs with repairs and maintenance of such systems, costs that could prove to be a real headache, especially if the appliances are damaged beyond repair. Considering the high costs of repairing an old home, a new construction home is something that you definitely want to consider.
However, this does not mean a new construction home does not require repairs and maintenance. Some features and appliances could have been fixed wrongly or could even be missing, hence the need for thorough inspection of the house by a real estate expert before buying any home. This will save you money since such maintenance can fall on your shoulders.
- They are in Good Neighborhoods
An area that has newly constructed homes has a better neighborhood since the area has not been polluted. New roads have not been worn out, the parks have freshly planted grass, streetlights are new, and the water and sewerage systems are in perfect condition. In addition, the people are new to this type of neighborhood and there are chances that they have not engaged in any social ills, meaning that the security in the area has not been compromised. This is of paramount importance when homebuyers are making their choice. Therefore, this gives such a home an advantage over others available for sale, meaning you get a great deal.
- Most Home Buyers Love New Homes
Everyone wants the feeling of new things: new walls, new bathroom, new kitchen and new appliances. An old home has old things that even after renovations may still have the feel of being used and worn out. Old homes may also feel like they are not new from odors of previous cooking in the kitchen. Bathrooms may be dirty and appliances may be rusty. All these make homebuyers feel as if it is not clean. A new home on the other hand feels cleaner since everything else is new, because the renter or buyer is sure no one else was in the home before. The other main reason for wanting new construction homes is that they always provide a better look and feel, making them appear better even if they were not made to the best standards. For this reason, your home stands out from the rest hence increased value.
- New Homes Come with Warranties
An older home has a shorter warranty or its warranty may have even expired. This means that for any damages or maintenance that would be required in future, it is placed solely on your shoulders. This will be a hefty cost on you. With a new construction home on the other hand, comes a longer warranty, usually 10 years. This is an advantage because when the new owner damages or realizes damages that may not have been seen during the buying process, the builder will handle the maintenance costs instead of the buyer. It is important to go through the warranty document to understand fully what is covered since some warranties may not contain such costs.
A new construction home is a venture that involves a huge amount of money. For this reason, great caution should be taken when buying the property from the builder. You should do this with the help of a real estate agent. New homes are expensive but it will make a worthwhile business because of the many advantages associated with a new construction home. The buyers are ready and willing to spend on quality at the expense of the high cost. Consider reaching out to experts for more information regarding new construction homes.