When it comes to becoming a landlord, one of the most common ways to begin is by buying a pre-owned property. But buying a pre-existing home isn’t the only option out there. You can also consider investing in a property that has been built very recently. In real estate, this is commonly called a “new construction home”. But people often ignore it as there’re many misconceptions surrounding the process of buying a new construction home. Read this guide to know these common myths about buying new construction homes.
What is a new construction home?
In its most basic sense, a new construction home is a brand-new home that hasn’t been owned by anyone yet. Homeowners who buy new construction homes become the very first ones to live there. New construction homes can be built by homeowners who buy land and partner with a construction company – that way, their home can be custom-made to their tastes.
Homeowners can also purchase a completely constructed property via developers who have a variety of home options (e.g. one-bedroom, two-bedroom, etc.). The downside to this is that the homeowner will have little to no control over what their home will look like. Fortunately, homeowners who want the best of both worlds (a complete home plus the opportunity to tailor it to their needs) can choose semi-custom homes. An example of a semi-custom home is a home that’s been completely built except for the floor. This will give the homeowner some freedom as to how to design their interiors.
What are the pros of new construction homes?
Now that you know what a new construction home is, let’s take a look at why it’s a worthwhile choice:
#1 Tailored to your tastes
One of the best benefits of buying a new construction home is that you can tailor it to your tastes. By doing so, you’ll be able to design a home that meets your family’s needs to a T. Or, if you plan to rent it out in the future, you can make sure that it meets your market’s expectations. For example, if your property management company identifies an “open floor plan” as one of the features that attract tenants in your area, you can ensure your contractor constructs a home with an open floor plan.
A pre-owned property doesn’t provide you with the opportunity to alter its appearance. You’ll probably have to renovate it to make it more desirable to prospective tenants. Plus, old properties will likely have outdated designs that won’t appeal to today’s tenants (think ‘70s-style tiles).
#2 Brand new
If you’re going to invest in a single-family home, go for the one that’s been recently built as everything will be brand-new. You will be the first person to use its appliances – in other words, wear and tear starts with you. And since all of the items are in immaculate condition, you won’t have to worry about repairs or replacements any time soon.
#3 Energy-efficient
Energy efficiency (and eco-friendliness in general) wasn’t always the norm when it came to construction. That’s why it’s not uncommon to find old homes containing “bad” building materials such as asbestos in apartments. The good news is that things have changed, and new-construction homes are now being built with better building materials. That way, your property management firm can find a tenant ASAP, and you won’t have to wonder if your home is code-compliant.
Pro Tip: Many of today’s tenants prefer eco-friendly homes, so being a landlord you should consider purchasing energy-efficient homes. When you buy a new-construction home you’re always one step ahead.
#4 Move-in ready
Before you can find tenants for your South Florida property, you need to make it as clean as possible. Remember, no one would want to move into a home that’s obviously been lived-in. The problem with pre-owned homes is that they need a lot of sprucing up, and chances are, you’ll have to deal with one or two nasty surprises. Meanwhile, new construction homes are so immaculate that your tenants can move in immediately.
What are the common myths about buying new construction homes?
We know what you’re thinking: “But new construction homes cost a lot, so why should I buy them?” and you’re right… but you’re also wrong. This, along with many others, is a common myth that comes with buying newly built homes. Below, we’ve broken down a couple of the misconceptions homebuyers have about brand-new homes:
Myth #1: New construction homes cost more
While it’s true that new construction homes cost more to buy, they don’t cost more to maintain. With a new home, you won’t have to pay for repairs and replacements for years because it’s all new. Years will go by before you’ll have to worry about these things. Compare that to a pre-owned home that has undergone years’ worth of wear and tear on its flooring, roofing, and more.
When buying a brand-new home, don’t focus on the price tag – instead, focus on the bigger picture. You can actually save more money with a new construction home. (As a bonus, the resale value of a newly built home will be significantly greater).
Myth #2: New construction homes don’t need maintenance
The home may be brand-new, but that doesn’t mean you don’t need luxury home maintenance. To keep your property in the pristine condition that it came in, you’ll still need to work with property maintenance experts.
Myth #3: New construction homes take years to complete
This isn’t always the case. Many developers have near-complete or even complete builds for you to choose from. If you’re looking to invest as soon as possible, the key is to partner with a reputable property management company. They’ll have connections to local construction companies, and can help you find move-in-ready properties in no time.
Myth #4: New construction homes are hard to finance
Another common myth is that new construction homes are hard to finance. The truth is that it all depends on how much your home costs, as well as your circumstances such as your credit, assets, income, etc.
Myth #5: New construction homes are “cookie cutter” homes
Not all new construction homes look the same. Some developers will build the home according to their client’s design specifications. At times, they will allow the buyer to make big changes such as adding a new room, more windows, a walk-in closet, and the like. That way, you can appeal to what your market wants.
Myth #6: New construction homes can’t be inspected
It’s a misconception that you can’t have your real estate investment inspected by an inspector of your choice. The builder will conduct their own inspection, but you can also hire a third-party inspector to ensure the property was built according to the local building code.
Buying a New Construction Home in South Florida?
Whether you’re buying a newly built home to use as your primary residence or as a rental, the experts at Luxury Property Care can help you find the perfect property. What’s more, we’ll help maintain it so that it stays in immaculate condition for as long as possible. Call (561) 944 – 2992 today to discuss with our team what you’re looking for, and we’ll connect you to the best builders in South Florida. You can also complete our contact form for more information on our luxury home maintenance services.
