New Construction Investment

[Lia Locarnini]

Hello! I am a new 1031 investor looking for a replacement property during this hot seller’s market.  It is a challenge to find a suitable property with the low inventory and high prices.  I am focusing my search in Texas, mainly Austin (but am keeping my eye on other areas too).  My question is whether or not it is ever practical to purchase new construction for investment purposes.  Home prices are being driven up so much with bidding wars and I am seeing what appears to be comparable pricing to buy new.  It seems contrary to the rules of investing to even consider new construction, but in this marketplace and considering the tax savings to buy with a 1031 exchange, I am considering this.  I would appreciate any feedback on the topic.  Would any of you, more experienced investors, consider new construction? (Note: The 1031 rule requires that the new construction be complete and the sale  closed within the prescribed timeframe.)