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What to consider when investing in a newly constructed investment property?

Many people who want to invest in real estate may ponder over what the better investment option is. Should they invest in new construction or an existing rental property? Of course, the new construction property offers many advantages, such as attractive pricing and the latest amenities, but an existing rental property has a well-established name and market. Therefore, it might be a challenging decision for investors. However, many things need to be considered, such as thorough market analysis, the purpose of buying the property, property location, market, neighborhood, taxation in the area, inflation, and any risk factors.

Vision Real Estate has been helping investors who are interested in buying real estate properties across New York for more than 15 years. Our real estate experts have extensive knowledge of investment properties throughout New York. So, if you need any assistance in purchasing a property or selling, our team would love to assist you.

We have compiled a list of factors you should look for when considering buying a new investment property to help you make an informed decision:

  • Whether you are considering investing in a newly constructed property or an existing one, it is recommended to review the construction company’s reputation and performance of any past projects completed by the same company.
  • It is essential to invest early in a rental property with the potential of high returns to ensure a better cash flow. So review the neighborhood amenities, marketplace, and other developments to estimate whether investing in the new property would be worth it.
  • It is also recommended to take into consideration the fixed expenses such as monthly maintenance costs, taxes, and other costs which can impact your cash flow and estimate the expected returns to ensure the property is worth investing in. An existing property that is very old may have more fixed costs than a new one.
  • Regardless of the type of property you’ve decided to invest in, make sure the location is ideal. Properties located in a prime location with commute facilities, market parks, and other facilities nearby tend to have more tenant retention and produce stable returns in the long run.
  • If you’ve decided to buy a newly built rental property, it is always a good idea to buy it in a housing market with rising housing demands. New construction properties in well-established or developing areas tend to attract long-term tenants.

If the rental property meets your ideal criteria and has the potential to deliver better ROIs, it might be a good idea to invest in a new property. However, it is highly recommended to consult with experienced real estate experts first.

Our realtors are well versed in the real estate market trends in New York. We can help you find the best rental properties which meet all your requirements and help you secure a profitable deal.

Schedule a consultation with our real estate experts today!