Is it wise to buy new construction as an investment property? I bought new construction for my primary residence and after two years my house is already worth $18,000 more
@Larry Slayton , most markets are appreciating. When you say as an investment, do you mean renting it out? Having some more color on what you are thinking would help. Many people would say don't bank on the market to continue to appreciate as it has lately for the long term. In fact there was reporting that rates are going to continue to climb through the spring buying season, which will have a marked impact on pricing, if those rises do come and reduce demand.
But if you do plan on renting, than it can be a good investment, but you have to run your numbers and make sure that you are cash flow positive each month.
Finally, remember there is a lot of cost associated with selling real estate. If your house is $300k, that $18k increase only covers agent commissions (6% paid by seller) when you sell, and there are other costs of selling.
Yes I was thinking of buying and renting out, then sell in a few years after having gained some equity
In my opinion is a double edged sword.... I custom built 2 years ago and ive already got 125K in equity in my property, now with that being said it took 10 months to build (Not including time before they broke ground) and you have a ton of out of pocket cost. You're going to have two closing cost and anything you go over budget on you will have to pay out of pocket. Also the whole time youre building you will have "Holding cost." The time it may take to recoop your money may be much longer than you expect but my area is growing and I was able to do a cash out refinance this year and pull 50K out while my monthly payment actually went down.