Purchasing New Build as Investment property/tax shelter

[Kymberly Chase]

Considering buying a new build but on the fence: I'm an agent- will make 5% commission, builder paying closing costs & rate buy down so can purchase a $289k SFH for $45k out of pocket in an A rated school system, a rural area that's just exploded out of nowhere. Rent would cover the mortgage & CDD with just a few hundred left over so would really be an opportunity for tax shelter & banking on future appreciation since we're in a top 10 job growth market in the country, expecting buyer demand to explode in the next 60-90 days.. We currently own a property we STR but still paying around 20% in taxes so would love to offset that. Thoughts?

[Sean Hudgins]

The Tax stuff aside, I liked what @Morgan Gutierrez said. That new build will only be new for a couple of years. If the new build-out performs an existing home in your area, I believe it makes sense as long as the numbers work out as you have described. 

The only caveat I have to that is the builder... if it is a builder that is known in your area for doing a great job and building a quality product, then go for it, but if it is a builder that is known for slapping homes together and has poor quality construction standards then I would go with the home that has been standing for 50 years before I invested in a building that was built without sound building practices as some production builders do.