When you plan on purchasing an investment property, you probably think about finding a small, affordable home that has a bit of wear and tear to it. That way, you don’t feel like you’re dropping a lot of money upfront for a home that other individuals will be living in. However, while that may seem like a good idea initially, the hidden costs of owning an older rental home can quickly become apparent. That’s why, when you’re looking for an investment property, it may not be a bad idea to consider new build homes in the area in order to cash in on the many benefits that they can provide. Keep reading to learn what benefits you can gain from a new build home as an investment property, and why it’s the best decision you can make.
No Initial Upgrades
When you purchase a new build home for your investment property, you can rest assured that you won’t have to worry about upgrading the home any time soon. A new build home is going to be designed to current home trends and have everything up to snuff already. No bright pink tiled bathrooms and no tiny, closed off kitchens. All the newer designs and features will allow you to charge a premium price for your rental and it will also be more likely to rent out quickly as well.
In addition to avoiding upgrades for quite some time, you’ll also have to foot the bill for fewer repairs. With a new build home, you won’t have to worry about pipelines breaking from age or fixing broken down HVAC system, and your renters won’t have to call nearly as often due to problems. Because everything is so new, the home and all of its contents should be able to maintain itself for quite some time before you start seeing any large, age-based repairs. While you may be paying a tiny bit more on the mortgage, you definitely won’t be shelling out large sums of money for unexpected repairs.
When you buy a new construction home as an investment property, you’re buying a home that comes with plenty of warranties as well. These warranties will cover everything from the new roof to all the appliances in the kitchen. If something happens while parts of the house are still under warranty, you won’t have to worry about covering all the costs associated with repair or replacement. Warranties are a guarantee that the work performed and the things installed in the home are going to be of good quality.
Growing Neighborhood, Growing Equity
New build homes are typically constructed in up and coming neighborhoods. This means that while the neighborhood or area is just starting out, you can bet that it will gain equity over time. One of the best benefits from investing in real estate is the equity that homes gain simply by owning them. If you pick a new build home in an up and coming Arkansas neighborhood, you’re going to be pleased with your equity gain over the next 5 to ten years.
For help finding the perfect investment property and help managing it in central Arkansas, turn to Real Property Management Central Arkansas today. Call for more information!
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