In a lot of ways, buying a new home to use as a rental property can be a good investment. From a cost standpoint, new construction offers investors the opportunity to bargain and promptly rent out a pristine, lovely rental home with a range of attractive upgrades. Because the upgrades are included in the purchase price, there will be few, if any, out-of-pocket repair and improvement charges to get the property ready for your first tenant.
If the brand new home is promptly set for move in, rental income can commence instantly. Included in the price of a new home are also a variety of upgrades that can aid investors to be able to customize the rental home to draw in a particular renter demographic. For instance, a new home that has been upgraded with smart technologies will likely charm a Millennial renter than one that is not.
Tenant appeal is an essential component to every successful rental property, and new homes offer renters something older properties cannot: the chance to be the first and only tenant who has dwelled in the house. A new property also gives renters significant utility savings, because newer homes are inclined to have higher energy efficiency throughout. Tenants opting to stay long-term may be exceptionally charmed by these features and by the expectation of living in a modern, low-maintenance, energy-efficient home for ages to come.
As these are compelling reasons to invest in a new home for your growing rental property, there are an array of drawbacks to examine also. For instance, it’s crucial to recall that not all builders are equal and that some might employ cheap materials or try to cut corners to save money.
Purchasing shoddy construction can bring about endless haggling with the builder to try and get things done correctly, as well as higher repair and maintenance costs if you can’t get them to do the work the right way. Another part on the negative side of things is the often-limited number of options available. In spite of the fact that customization is achievable to a degree, it is more constantly an option of choosing between a very limited set of wall colors, countertop styles, and so on, or risk driving the purchase price up even higher.
Ultimately, if you are an investor who enjoys a good bargain, buying a new home may not be the correct alternative for you. This is due to the fact that the price of a new construction isn’t always decided by the market or a previous owner, frequently leaving little wiggle room for negotiation.
When you’re buying from a builder, they may not be as open to negotiation since lowering the base prices on their homes alters the data on comparable properties in the neighborhood and encouraging future buyers to see if you could haggle as well. Indeed, this circumstance is dependent on the situation, and it’s always a good idea to ask for any available discounts or other financial incentives.
It is crucial to evaluate all the pros and cons before choosing to buy a new home to utilize as a rental property in Roslindale. But with so much to contemplate, it can be difficult to understand whether a new property is a real investment for your market and demographics.
You expect full market information, like the type extended to all property landlords with Real Property Management Boston. We perform market assessments for all potential rental properties, ensuring that owners who partner with us have the tools and information they need to make the best possible investment decisions. For more information, contact us online or give us a call at 617-996-0708.