Reasons a New Construction Property is a Great Investment
New construction homes are one of the most popular items on the market. Not only do they offer new materials like roofing, siding, and flooring: but they also offer the chance for you to make a large investment that will pay for itself over the years.
These are the top reasons a new construction property is a great investment and why everyone should consider purchasing one soon.
Higher Home Value from Materials Used
Many new materials are coming out every year, and people are eager to get their hands on them. In new construction, dozens of properties come with new materials every day, so you don’t have to worry about upgrading the property yourself. This encourages renters and buyers to perceive the property as higher value, which means that as the home gains importance in the market, it’ll continue to be seen as a good asset until these materials age out in twenty to thirty years.
Reduced Short-Term Maintenance
If you buy an older home, there’s plenty to worry about. How sturdy are the insulated metal panels? How well maintained are the pipes and HVAC system? These are all issues that the home inspector should catch, but they can still add up to a huge amount of money you’ll need to spend within the first five to ten years of buying a home if it needs these upgrades.
Instead of pouring your time and money into researching residential repairs and figuring out how often you’ll have to stop by the rental property: you can sit back and allow the new construction to save you from all of this work.
Home Insurance Costs Drop
Insurance companies prefer to cover newer homes since they come with far fewer risks and are expected to last longer than any older builds. Because of this, you can expect homeowners’ insurance to be less expensive and easier to find. This will save you a lot of money in the long term and keep your monthly bills in a more comfortable range.
More Attractive and Up-to-Date Options
If you want a more attractive and modern home: you’ll find it in new construction. Whether you’re interested in stucco siding panels or you’re more excited about looking at smart-home details like a smart thermostat, you’ll be able to find it in a new construction property.
These properties usually also have more curb appeal, with fresh green grass or other details that would usually age into looking boring or unkempt over time with an older property.
Better for Rental and Income Properties
If your main goal with your investment property is to rent it out and make money over time: a new construction property is the best choice. You can rest assured knowing that the property you’re advertising to renters is in excellent condition and can request a higher rate of rent than many older construction properties could.
If your new construction is in an area that was recently developed, this is also a selling point to renters since these are often quieter and more peaceful neighborhoods. Over time it might gain more personality, but in the beginning, it’s a definite perk.
Lower Energy Bills Every Month
Energy bills are something that everyone has to deal with: and can quickly turn into a massive amount of spending. Regardless of how much you try to keep down your energy bills, if a property is older construction, there can be leaks in anything from your exterior wall insulation to your windows and doors. Beyond this, an older HVAC system might simply not run as well as a newer one.
This all adds up to a property that has lower energy bills and allows residents there to save some money every month. This is a great selling point for renters and an awesome way for you to save money if you’re the one living there.
More Reliable Dating on the Materials
In some older properties, the only way to date material is to find the receipt for it or try to gauge the age based on how much wear and tear it’s been through. Thankfully, on new construction, you don’t have to worry about that. New construction gives the entire home a blank slate and allows you to plan for the future so that you’ll be ready to deal with updating to a slate roof or changing out your siding when it’s finally time.
This schedule is awesome for anyone planning on renting out their properties since it allows you to plan this cost into the rent and decide what changes you’ll want to make annually as you own the property.
New Construction Properties Are a Game Changer
Whether you’re buying the property for yourself to use or you’re investing in an income property that will pay for itself over time: there are tons of reasons to consider investing in a new construction property. This is one of the best options out there, so make a good investment.
Ryan Shure is an editor for the Innovative Building Materials blog and a content writer for the building materials industry. He is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that save money, improve energy efficiency, and increase property value.