Existing or New Construction as an Investment Property?:-  Real estate investors today have the opportunity to invest in an existing property or build a brand new one. Existing homes are typically in an established neighborhood, closer to a downtown area while new homes are often in the suburbs.

If you’re a real estate investor who is considering building a existing vs new constructionnew home for an investment, what are the pros and cons of a new home compared to an existing one?

The advantages of an existing home are primarily location based. An established neighborhood with good schools and closer to downtown and area parks. That’s a plus but it may also mean the home is more expensive due to its central location. There’s less of a commute when people go to and from work each day. Older homes can also mean more maintenance for you at the outset. When you order a property inspection for an older home that you’re considering, you can bet the inspector will find multiple items that need attention. Even things that work just fine might be out of current building code.

A new home will have the latest in building materials and green features, making the home less expensive to heat and cool. Newer homes today have larger rooms and high ceilings where older homes typically have more rooms per square foot but the rooms are smaller with traditional ceiling height. And speaking of old vs. new, a new property can cater to the latest in new home amenities. You won’t find a home built in 1960 that has a media ready family room with wi-fi. You can certainly install the feature but with a new home you can integrate that at the very beginning.

A new home will include the latest and greatest features that home buyers are looking for today whereas with an older home you’re talking about a retrofit and extensive remodeling. Everyone has their own preferences and the calculations must be made to make sure the acquisition is a proper one regardless of the old vs. new question. There is no definitive answer only that a newer home gives you more options while an older home is in an established neighborhood. Either way, if you can’t profit from either choice, it’s time to move to other neighborhoods.