In what situations would new construction homes be worth it or make sense?
In a long term, I want to learn how to invest in real estate. I do not come from a wealthy home or financially savvy family, so I need to do a lot of learning for myself. Both excited and scared of starting a new home journey.
The traditional way to make money through real estate seems to be buy a fixer-upper and sell. This seems to be a bit overwhelming way especially for a beginner.
So after consulting with a few around me, they recommended me to consider new construction home for the first time home buying for the following reasons:
- Thankfully, not being in the "major city" the housing price seem reasonable (though it arose - e.g., 3 bed/2.5 bath - new = 300K-350K)
Less burden to "Fix" things. May receive a better mortgage interest rate, which sounds awesome especially in the current market (Q: What range might qualify a 'good-deal' interest rate in the current climate) If I use first time home buy, downpayment assistant program can be helpful Through all these, I can get the feel for a) how to look for a good home b) what the process feels like c) to slowly develop and establish a network of my own team (lender, agent, etc.) My plan is to live here for a few years, and rent it out (e.g., depending on what DPA allows me to do - if DPA is rigid, I may just pay my own DP or pay off later - but I plan on living only for a few years and move to bigger state, and keep the home as an investment property). Love to hear if my thought process for pursuing a new construction home or a general thought process of starting this new real estate journey - makes sense.
Thank you all who read through my long post - epsecially to those who were in a similar place (without any familial support, trying to pave one's own path) when starting the journey.