Buying a New Construction Homes

1 Reply

Bigger Pockets team,

I am moving to TX in the not-so-distant future and am looking to buy a duplex (owner occupy initially and then rent out both units in the future). There are two new constructions on the market (should be complete just before I move) that I am considering. I wanted to ask for advice/thoughts/comments on buying new constructions. They are obviously more expensive than other houses in the local market but you are getting a less worn product. Does buying a new construction immediately put you in the hole as it will decrease in value once lived in? Or does the value stay pretty level and appreciate like any other property? My fear is there is an initial drop, similar to driving a car off the lot, before appreciation kicks in. Happy to provide more information if necessary to get feedback.

Thanks!

I would be cautious of the top of the market pricing i've seen in the duplex market in popular Tx Cities. Remember to evaluate the property to see if it could withstand a "shift" in the market and be worth what you have invested in it. 

I am in a new development myself but got in at the lower end of the pricing so I feel we are in a good position for a potential shift in the market. What part of TX are you looking at?