Buy New Home as investment property?

[Michael Bergeron]

I have a new home community being built near me in Duluth GA.  The community is in the early build stage and there are not a lot of homes currently built.  

My question is would you purchase a NEWLY BUILT property as a real estate investment?  I would want to rent out this property.

My thoughts are that the property will increase in value as the community continues to build out.  
*** Note I'm new to the real estate investment path and welcome your feedback. 

[Bruce Lynn]

You might check with the builder and see if they will sell to investors.  Many don't.

If there is an HOA, you should check to see if they allow rentals and signs. Many don't.

New homes are right for some investors, but many won't touch new homes.  The returns are normally as good as say a 10-20 year old home in many cases.  There's often an option to value add for older properties, that allow you equity capture.

Another consideration at this point in time is interest rates.  If you take on a build job interest rates will likely be higher when you close at some point in the future, vs being able to lock that in today.  That can impact your returns significantly.