New Construction Homes Pros and Cons

[Timmy Chen]

Hi Everyone,

Currently I am looking at a real state development and current they only have demo townhouses homes. They are currently in stage 3 of the development and are offering 10k incentives Builder and 2% Seller(towards buying down the interest or closing cost), home comes with warranty and appliances. 

Once under contract, they will review the buyers customizations and then build. My questions to all the lovely BP folks here, is there anything to be cautious and look out for new construction homes and are they viable to be an investment property?

Any knowledge is most appreciated!  

[Bradley Buxton]

@Timmy Chen

We are seeing some of the best investments for new homes because of the lender rate buy downs. We have investors, non-owner occupied getting 5.99% rates in the Reno, NV area.  The rents are still strong and there has already been good appreciation as the builder runs low on homes they have been raising prices. You can also save in maintenance cost the first few years since everything is now.  

As other responses have said the build quality and builder reputation are important.  I always recommend a home inspection even on new builds. Even better if you can get one before everything is drywalled.