With the current conditions of the real estate market, buyers are looking for more and more alternative ways to reach their goal of home ownership. Since trends don’t seem to be stopping any time soon, we can expect more people to show interest in purchasing condos, townhomes, and even manufactured or modular houses. But there is another, often-overlooked path buyers should consider, and that comes in the form of new construction properties. Both home buyers and real estate investors alike can seek to benefit from building a new home instead of buying an existing property. Continue reading to learn why new construction can be a great idea for your next real estate purchase.
It can cost less than an existing home
First and foremost, building a new property can cost less than purchasing a comparable home that is already built. That’s because in many cases, the value of a home once it’s completed is higher than the cost of the labor and materials used to build it, especially when it comes to large, high-value homes. For investors, that means these properties offer a great return-on-investment (ROI) if you plan to sell for profit. And if you choose to rent the property out, you will likely see a better yearly ROI than you would buying an existing property. If you’re looking to acquire a property but want to stretch your dollars further, new construction can help get you a great home for less.
It will sell quickly
Another benefit of newly constructed property is that it will be in high demand simply because it’s new. The home will most likely be built with modern styling and decor, which will make it desirable for both buyers and renters. In today’s competitive market, homes receive multiple offers and sell fairly quickly, and that is even more true with a beautiful, newly-built properly. You should also look to work with a trusted, experienced real estate agent. They will be able to help you get a good offer on your property and sell in a timely fashion with relative ease.
You can choose where it will be located
The great thing about building a new home is that you can decide where you want it to be constructed. Lots of new properties are built in new housing developments which will grow over time, and your property can seek to benefit from this growth too. If you expect more homes to be built in the same neighborhood, you can expect your property to appreciate, and it can develop a sense of community over time which can be very desirable for family-oriented buyers. There are also rapidly growing “hot” markets around certain cities, and you can capitalize by building your property in these areas. Finally, it can be beneficial to build close to desirable amenities like shopping centers and good schools.
You can spec it how you like
Of course, one of the best things about building a property yourself is that you can decide exactly how it will be built. You have influence over every part of the construction process from start to finish. That’s great if you’re planning to live in the property, but it can also be beneficial if you’re planning to sell afterwards. You can choose to include desirable amenities like walk-in closets, large bathrooms, and floor-to-ceiling windows. You can even include luxury amenities like a jacuzzi or a sauna, but you will need to ensure the bump in your property’s value is worth the investment.
RCN Capital lends to real estate professionals, commercial contractors, developers & small business owners across the nation. We provide short-term fix & flip financing, long-term rental financing, and new construction financing for real estate investors. If you are an investor looking to finance a new construction, RCN Capital has competitive loan options available. Connect with us today to discuss your next real estate investment.