Are New Builds the New Play?

[Karl McGarvey]

A lot of changes in the market over the last 12 months, and even David Greene admitted on the BP podcast this week that cashflow just is not where it used to be and that you really have to start factoring in the ROI of appreciation over time. Houston has not been immune to the affect that high interest rates and prices have on getting cashflow, but my latest clients are pivoting from houses that need upgraded, to new builds and houses that have the upgrades so that they can put their business on autopilot and not deal with heavy CapEx expenses. With buyer incentives and even deals to be made with builders for using their lender, there are opportunities to strike deals in the new build sectors. Just a few notes on happenings in our slice of the country - feel free to reach out if you would like to discuss the topic in more detail!

[Bill B.]

Bought my first new house ever in vegas a couple weeks ago. Resale average was 17 years old and $550k. New build was $600k with a 1% lower interest rate and $5k in closing costs. So I’ll save $4-5k/year in interest and everything in brand new in a new neighborhood for almost nothing. If it turns out to make a bad rental and I move in to it as a new primary in a year or two that will be ok too.