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Updated about 5 years ago,
Phoenix Buy and Hold Question
I work for a contractor that focuses on roof and window/ door replacement. I just wanted to get some input from experienced investors that hold properties for long term investments.
On both our product we offer a 50 year, 1 exclusion (an act of God) warranty held by the manufacturer. Meaning, if anything goes wrong, we will replace it for free including all parts and labor for the full 50 years. With that, if you go and purposely damage the integrity of the roof or window frame, it will not be covered. On roofs this includes losing just one shingle or get a leak within the 50 years, and you will get a full roof replacement. With the windows if the argon gas leaks out, accidental glass breakage (the two biggest exclusions on warranties) are both covered for the full 50 years. Both warranties are transferable to the next owner if sold within the 50 years.
I have looked into getting into real estate investing before, but never pulled the trigger. When I got to thinking about the value of these products and the warranty, I thought it would be a very smart investment. Never having to worry about a roof or windows/doors again.
The roof and windows are built to last well over 50 years, and that is why we put that kind of warranty on our products, so it is a premium product, but it comes at a pretty average investment when you compare it to costvsvalue.com
So the main question, would it be of value for an investor to buy a guaranteed 50 year roof and/or windows? Or would you rather just buy the cheap windows that you can find at Home Depot or any other big box store??