Appreciation/depreciation on new builds
Hi everybody. In my patch, Memphis, I am used to buying homes at well below replacement cost. I have an opportunity to start buying new builds direct to builder with some equity in them. What I don't know is what "usually" happens with new home values in the USA.
Are they like cars where they devalue the moment you leave the lot or is it realistic to expect they will hold their value and appreciate over time?
I know this might sound like a ridiculous question coming from me but I have not dealt with new builds before and so my experience buying in the crisis was that I could buy almost new for 20 to 45% off replacement build cost.
These are long term buy and hold and we have good financing available hence the attraction in newer inventory.