Should you buy a secondhand home or a brand new home? As a keynote speaker and an investment adviser who has been helping people invest in real estate since 1983, this is a question I get asked a lot. There is a widely held view that brand new homes are more expensive, but this is a misconception. My advice is to opt for a new home for the simple reason that this could actually turn out to be the less expensive option for real estate investors. I explain why here.
Everything is new in a new home.
This advice is based on my own insight gained over the decades. I have personally bought hundreds of homes as part of my own investment inventory, and have facilitated thousands of other real estate sales all over the United States. My personal and professional experiences have demonstrated why buying new homes is a better deal. When you buy homes as an investment, you do this so that these homes will fetch you a passive income by way of rent. You don’t want to have to bother about breakage and repairs and other hassles as a landlord. This is more likely to happen in a secondhand home.
On the other hand with a new home everything is new: the roof, the flooring, the heating and cooling system, the appliances. There is a much lower chance of things breaking down or needing repairs and replacements: ergo fewer expenses and far fewer headaches for you as a landlord!
The ICG advantage can push down the price.
Buying directly from the developer is a better option for yet another reason: the ICG Advantage. ICG is a real estate investment company that has the knowhow and the kind of contacts that have empowered and enabled thousands of investors to build a safe, financially secure future. When a developer is dealing with ICG, that developer has the incentive to offer our investors a better deal, as I explain in this video.
My point is that brand new homes being more expensive than preowned homes is a bit of a myth. In well over three decades of my experience, I have found that they turn out to be less expensive in many ways. Watch a short episode to know exactly why – spending a few minutes now could mean saving yourself a lot of money! Watch it here.