The real estate business is one of the most profitable investments that an individual can choose to undertake. The two options available when investing in real estate is either a resale or new construction. A resale describes a house built sometime back and had a tenant, or the owner was living in it. On the other hand, new construction represents a house where the current buyer is the first occupant.
A resale is purchased directly from the owner, while the new construction is from the individual who developed it. Compared to a resale purchase, investing in a new construction comes with several benefits, as listed below.
Investing in new construction, especially during the early phases attracts great discounts than waiting for complete construction. The real estate builders and owners easily offer these discounts as it helps them in financing the unfinished construction and gives them leverage during the development.
One of the main advantages of investing in the new construction is the low deposits that the builder needs to seal an agreement. A deposit of up to 10% of the purchase price is enough to secure the developer’s new property. The advantage of settling for the new construction is that the deposits are negotiable, allowing the buyers or investors to minimize as much as possible the amounts they spend on the property beforehand.
Low Maintenance and Repair
New constructions come with amenities that are new with no damages to them. This factor eliminates any immediate repairs and maintenance costs that the buyer would have incurred if it was a resale. This investment’s greatest benefit is that the buyer gets a warranty from the builder to cover all systems’ costs, including plumbing, for up to 2 years.
For buyers who are looking for properties to resell, the new constructions provide the advantage of faster appreciation than the resale. The general growth around the new property and closeness to essential amenities increases the value of the property.
The construction world is quickly changing, and the user preferences and tastes lean towards new technologies that the resale cannot provide. New constructions are designed and built with the latest technologies in heat insulation, air conditioning systems, environmentally friendly materials, and low maintenance technologies. This factor means that you get much better deals, better value, and satisfaction with the new constructions.