In the process of buying single-family rental properties in Waltham, keep in mind that there are both pros and cons to choosing a newly built home. Although newer properties give benefits such as more customization, higher energy efficiency, and would not require too much upkeep in the first few years, all these things and more may result in you spending more initially. This is usually the case not for the reason that upgrades aren’t cheap, but because there is typically very little room to negotiate on price. Regardless of which property you pick, it matters to weigh all of the pros and cons carefully to guarantee that you’re achieving a definite return on your investment.
In more ways than one, 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 purchase and instantly rent out a clean, gorgeous rental home with a range of attractive upgrades. Because the upgrades are included in the purchase price, there wouldn’t be too much if any out-of-pocket repair and improvement expenses to make sure that the property is ready for your first tenant.
If the new home is readily available for move in, rental income can begin right away. Included in the price of a new home are also a range of upgrades that can help investors customize the rental home to entice a particular renter demographic. For example, a new home that has been upgraded with smart technologies will likely attract a Millennial renter than one that has not.
Tenant appeal is a huge deal in any successful rental property, and new homes offer renters something older properties cannot: the chance to be the first and only tenant who has lived in the home. A new property also offers renters significant utility savings, since brand new homes have the tendency for higher energy efficiency throughout. Renters who are open to stay long-term may be mainly enticed by these features, and by the idea of staying in a modern, low-maintenance, energy-efficient home for many years to come.
Even though these are all compelling reasons to invest in a new home for your next rental property, there are a few disadvantages to think about as well. For example, it’s significant to think of the fact that not all builders are equal and that some may utilize cheap materials or try to cut corners to save money.
Acquiring shoddy construction can lead to 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. One more aspect on the con side of things is the often-limited number of options available. Even if customization is possible to a degree, it is oftentimes a matter of choosing between a very limited set of wall colors, countertop styles, and so on, or risk driving the purchase price up even higher.
To conclude, if you are an investor who loves to score a good bargain, buying a new home may not be the precise choice for you. This is because the price of new construction isn’t always determined by the market or a previous owner, regularly leaving room for negotiation.
When you’re buying from a builder, they may not be as open to negotiation because lowering the base prices on their homes alters the data on comparable properties in the neighborhood and encouraging future buyers to take the time and talk them down as well. Without a doubt, this situation may not be the same all the time as it still is dependent on the circumstances, and it’s always a good idea to ask for any available discounts or other financial incentives.
It is essential to evaluate all the pros and cons before choosing to buy a new home to use as a rental property in Waltham. But with so much to consider, it can be hard to know whether a new property is the right investment for your market and demographics.
You need comprehensive market information, like the kind extended to all property owners who have partnered with Real Property Management Commonwealth. 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 617-299-2342.
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