Why investors don't like New Construction?

[Bryan Keller]

I'm thinking about purchasing one in FLL area however I know investors usually shy away from New Construction, is there anything I need to beware of?

[Stuart Udis]

Don't assume because the building is new construction, there will be less maintenance. There are a lot of poorly constructed buildings and in most cases the builder warranties are as valuable as the paper they are written on. It's important to vet the builder just as much as the building. I've also seen instances where builder warranties only apply to owner occupants meaning they are void if leased. Often times the warranty, if offered is not provided until settlement or shortly beforehand so make sure you understand what you are getting during the diligence period. I frequently see buyers place less emphasis on diligence when they are purchasing new construction.  There's no reason to make assumptions. Go through your process just as you would in any transaction.