New Builds As New Investment Niche: A Simple Guide
Sep 21, 2022
Today, real estate property investments have become increasingly popular among investors. Not only does it provide a stable income and appreciates over time, but also because there are many different investment opportunities in the real estate industry. For instance, there are residential properties, rental homes, commercial buildings, and even new builds.
While this generally can be a good thing, it could make it difficult for potential investors to choose a niche, especially if you don’t know how or where to begin. But, with the right advice and research, investors can make a more informed decision regarding their investment niche.
Suppose you’re planning on investing in new builds. In that case, then this article can be for you. Here’s a simple guide on how new builds could become a great investment niche for you.
What Is A New Build
In general, the term new build refers to new construction. Unlike a renovation or upgraded property, a new build is a newly constructed building. It could be a house, office block, apartment, or any commercial building.
Investing in a new build is often done under the radar, but it can be worthwhile as an investment niche too. And although most investors prefer to look for old, dilapidated properties to renovate and resell, investing in new real estate could also have great returns. You can check out new builds in London if you reside in the city to know more.
But before you get into the new builds niche, it's essential to understand that it's different from other types of property investments. New builds may require you to check out the developer’s other projects and do substantial research and reviews of their other properties.
The Benefits Of New Builds
To help you decide whether a new build investment niche is the right investment option for you, here are some benefits worth noting:
1.No Renovation Costs
Perhaps, one of the known advantages of new-build properties is since they’re newly constructed, you wouldn’t need to worry about repair and renovation costs.
While it is true that new builds can be more expensive than existing properties, they can help you save money in the long run. This is because investing in old and dilapidated properties can surely take a hit on your budget since you have to flip it and conduct repairs in the building utility systems for it to be in good condition again. But with a newly constructed property, the building systems and components are new and well-functioning, even without the repair works.
2. Better Location
Real estate is usually all about the location. The location of a property will typically determine its value. For instance, if a property is situated in a great neighborhood, chances are you can get good value for your investment. And that’s how new builds can be advantageous.
Usually, newly constructed properties are often located in strategic locations. The developers have studied its location thoroughly, with potential investors’ preferences in mind.
3. Property Warranties And Up-To-Date Building Systems
With a new build, you can avoid the headache of incessantly calling the plumber or hunting down bids from foundation specialists since you get warranties of up to ten years, depending on your agreement with the developer.
More so, with new construction, you can be assured that the building systems and components are up-to-date with recent technologies and engineering feats. For instance, the property can be equipped with energy-efficient systems and solutions.
Tips For Investing In A New Build
Before you get into the new builds niche, it's essential to understand its in and outs. For instance, to get the most out of your investment, it may require you to check out the developer’s other projects and properties and conduct research about their real estate portfolio.
Furthermore, here are a few things to keep in mind before you venture full throttle:
Know The Selling Process
When selling a new build, some extra steps must be taken. These include obtaining the buyer's rights, including the deadline for forfeiting their deposit. Additionally, incentives and financing options have to be confirmed well on time. Also, information regarding floor plans and all the blueprints must be available for scrutiny.
Don't Get in Blindly
New builds can be intimidating if you venture into them blindly. To avoid making costly mistakes, you could engage an experienced real estate agent to take you through all the necessary steps.
For instance, often, contracts can be filled with technical jargon about construction and real estate property that may confuse an average buyer. Getting a real estate agent can help you navigate your way on these technicalities. They can translate it into simpler terms, allowing you to make a more informed decision regarding the investment you’re about to commit to.
Understand The New Build Financing Needs
Unlike resell transactions, new builds can be tricky when it comes to financing. For instance, interest rates and total costs can’t be confirmed in advance. You, therefore, may have to gather all the financing information needed for new construction projects before you venture into any form of investment.
Real estate investments can be challenging and rewarding at the same time. If you're considering investing in new builds as a new investment niche, you'll need to ensure you've done your due diligence and research. And to help you get the most out of your investment, consider working with experienced agents.
Our agents at SimpleShowing have extensive knowledge of the local real estate market and new builds in the area. With our help, you are sure to find the perfect new build property to invest in. Contact us and let's work together on your investing journey.