Some of the obvious pros to buying new are the warranties and life span on appliances, roof, garage door etc. The problem there also is that nothing has been put to the test. If you buy new you should always do a thorough background check on the contractor and make sure they have established communities elsewhere. If you are a licensed agent you can even find 5 or 10 year old homes they built that are now for sale to view for cracking, settling etc.
The immediate downside to buying new is that you will have to pay retail price for the same square footage you could have picked up cheaper with a value add project or off market deal. I suppose the real question is how long you plan to invest in the property. I have never bought new builds, but I could see potential in a ten plus year strategy. I do frequently walk new properties to see new trends, get ideas for rehabs and scope out the competition.
Stuti S. I tend to stick with newer (but not brand new properties) but that's not because of anything philosophical it's just based of timelines around heavy cash-flow wants, thinking more modern layouts will seem up-to-date longer, etc. I also have little appetite for lead-based paint, asbestos, galvanized plumbing, etc. which knocks out most everything pre-78 for me. I don't buy "brand new" because of those issues around settling, cracks, drainage, etc. I'd rather have the property have gone through a couple of harsh winters! I know I'm still paying a premium vs. something that needs work was built in the 70's, etc. and the thought part is that it's hard (of not impossible) to quantify a "more modern layout" when it comes to cash-flow now, in 20 years, etc. It's all some variety of educated guess.
Thank you @Andrew Johnson for your input. I am also trying to look for newer properties just wanted to compare with newer and brand new properties. I am not finding anything newer and real estate agent was suggesting to look for brand new options.
@Stuti S. For what it's worth, keep in mind that new properties come along with some challenges if you're buying in a tract home from a developer. Namely, negotiation is done far more often with "upgrades" that it is with price. So you don't (for a rental) likely want wainscoting, granite counter-tops, etc. You won't want it "bare bones" but you'll want it with the expectation of tenants getting in there and messing up your sparkling new home. But you won't be able to (I'm guessing) negotiate 5% off of the "base model" homes. Developers like to keep prices the same and are far more likely to "give you an upgrade for less" than they are to "lower the price of the base model". While this might be awesome for owner-occupants (who will happily pay a premium to customize their home) it actually holds negligible value to you.
So taking aside the "what if" issues around settling or other things, you just won't get the value out of the home equivalent of "new car smell" the way that an owner-occupant would. But you'll still pay for it...
@Andrew Johnson I get what you are saying. I am thinking of buying first property as residence as well as investment. As it is first purchase, I am bit scared and anxious. I am still doing research before jumping in. I want to have good foundation to start. I had been focusing on single family. Recently I am looking if there are duplex, triplex around the area. But 2-4 units are either too old or not in good neighborhood. Real estate agent suggested to have it built instead. Still being newbie, I am looking for opinions from experienced.