Property Expert Nick Statman on Investing in new-build property –
Investing in new-build property comes with many advantages. The modern design and updated fixtures and features make it an appealing and low-maintenance investment. New builds appeal to the modern buyer, and innovative building and design strategies mean investors don’t have to do much to it to get it ready to sell. If you’re thinking about diversifying your portfolio and investing in new-build property, consider these 4 things:
Do The Research
Not all new build properties are created equally. Research the different builders in your area and check online reviews. If you are looking for a particular type of home or a specific kind of neighbourhood, look for builders who specialize in these areas. This research and development phase is crucial for finding a new build that meets all of your investment criteria. Be on the lookout for builders offering specials and discounts so you can save money and get a head start on maximizing your ROI.
It is also essential to look into future plans for the neighbourhood. Will there be major highways or shopping centers built right up against the property? Are there plans to build other communities or commercial buildings nearby? Knowing the answers to these questions will help you ensure that you’re buying in a neighbourhood that will maintain its value.
Choose A New Way To Negotiate
Many builders will be unwilling to come down on the price of the home, but may be willing to offer upgrades from the design center. Instead of focusing on saving money on the final sale price, consider what you could do with a significant credit at the design center. This could mean upgraded cabinets, luxury flooring, or other features that add value to the home but also tend to cost more.
Timing Is Key
Many builders are working with a strict quota regarding how many homes they must build and sell in a single month. Waiting to buy until the very end of the month increases your chances of getting some significant deals and discounts on the home. There is a considerable incentive to sell the last few days of the month or fiscal calendar, so use this to your advantage!
Invest In Current Inventory
On average, one in five buyers’ homes will fall through before the completion date. This means one in five homes under construction isn’t being built for anyone in particular. If you have the capital and documentation ready, and can swing in and scoop up these unclaimed homes, the builder will probably be willing to offer a discount.
Pros of Investing In New Builds
Investing in new builds means that everything inside, from the flooring and paint to systems and appliances are brand new. This means they are covered by their warranties and will typically require less maintenance. New-builds appeal to the modern home buyer, they usually require smaller deposits than existing homes and have the final say when it comes to cost control and customization.
New-builds allow investors to customize their property in a way that aligns with their financial goals. If you’ve been thinking about diversifying your portfolio and investing in a new build, most seasoned investors would say the pros outweigh the cons.