Are new construction homes a good investment right now? Well, that depends. If you want a lower price for a property in a better condition, with a lower mortgage rate and the ability to charge more rent, then new construction homes are what you need. This “sleeper” investment is now cheaper to buy than a regular rental property, but since it’s a new build, it comes with a fraction of the headaches and repairs than most “used” homes. So if they’re cheaper, better, and make you more money, why isn’t everyone buying a new home?
Kathy Fettke has been investing in new construction homes for decades. At first, it was just a way for her to have a more passive real estate portfolio. But now, she knows she can make much more with new homes than buying existing rentals. Since so much of her portfolio is new builds, we brought her to the show to share why this investment may be the best on the market.
We’ll get into new construction pricing and why new homes are CHEAPER than existing homes but offer better amenities, safer structures, and often much lower insurance prices. Next, how to get a rock-bottom mortgage rate by negotiating with builders (we’re talking three or four percent interest rates!). Plus, Kathy shares precisely how to ensure you’re buying a new home in the path of progress so you can rake in appreciation.
Dave:
We all know that housing inventory is super low, and it’s super frustrating. Even when you’re ready to buy, there often isn’t anything in your buy box in the market you want to invest in. But I think there’s a sleeper category of inventory that most investors are overlooking. And I know this sounds crazy, but hear me out. It’s new construction. And listen, I get it. Investors often say new construction is a bad investment. It’s not the cool thing to do. And typically that’s true. But listen to this before you judge. Right now, the median newly constructed home is cheaper than existing homes. Yeah, you heard that,…