Buying a new home to rent out can be a great investment. But as with everything, there are pros and cons that need to be evaluated. So what should you take into consideration when thinking about buying a new home as an investment property?
Pros of a Newer Home
New homes have the appeal of being just that: new! They’re updated, offering a modern feel without having to renovate, which means there’s no upfront maintenance costs to get the home rent-ready. Not to mention newer appliances mean you ideally shouldn’t run into any repair issues right off the bat or at least have a warranty to fall back on if they do occur. And if the home is ready to go, you have the option to begin collecting rent as soon as qualified tenants are found.
Buying a newer home as a rental property also offers one thing that older homes just can’t: the appeal of being the first and only person to have lived in a space. Everything is shiny and new, creating a fresh atmosphere. Another added bonus for tenants is that newer homes are usually more energy efficient, saving money on utility costs.
Cons of a New Home
There are also downsides to buying a newer home as an investment property. Unlike older homes, new homes are often more expensive and don’t offer much wiggle-room on the price. And if the builder has cut corners during construction, you may end up in a long-winded battle trying to get issues corrected, which costs time and money.
So when it comes to choosing between a newer or an older home as a rental property, be sure to take into account all of the pros and cons. Assess your finances and see what offers the best return on your investment. And if you’d rather not go it alone when it comes time to rent and manage your new (or old!) investment, give Real Property Management Colorado a call!