As of June 2023, new house builds were up 6% over the same point in 2022.
There are plenty of ways to invest in real estate, and new construction homes are one of the most promising types of properties you can buy. It's an option you should consider, but before you commit to buying a new construction home, you should understand how it works.
Keep reading for everything you should know before buying new construction homes in Nashville, TN.
What Buying Off the Plan Involves
The first part of buying off the plan involves speaking to a property developer and entering into a contract. This is usually done while the property is under construction, but sometimes before the construction has even started.
Pros of Buying New Construction Homes
Many people choose to buy new construction homes. There are several benefits to investing in this way.
Developers build homes to make money, so the last thing they want is to end up with finished homes that aren't selling. Not only will this reduce their profits, but it could delay them when they're trying to move on to their next project.
While building properties, they're more likely to offer them at lower prices. By looking in the right place, you could find some excellent deals.
When buying a home off the plan, it could be at varying stages of the new construction home process. This means that you can have control over the final design.
Bear in mind that the stage the property is at will determine how much input you can have. Speak to the developers and they'll let you know what can be done.
Growing Property Value
If you purchase an off-the-plan home before it's finished, you could well benefit greatly. The property market is often moving upwards, so by the time your home is complete, it could be worth a sizable amount more than what you paid.
Cons of Buying New Construction Homes
While there are many benefits to buying off the plan, it's not for everyone, You should be aware of the potential new construction home risks that exist.
Building a house is no small task. Regardless of how well-planned a project is, delays are always possible. Maintaining an open line of communication with the developers will help you stay up to date with the new construction home timeline.
The Market Might Fall
While the housing market is usually on the rise, this isn't a guarantee. There's a chance that the market could drop after you purchase your home, and it may then be worth less once it's complete.
Should You Buy Off the Plan?
This can be a difficult call, but it all comes down to personal choice. Weigh up the pros and cons, and think about your investment goals to determine if buying new construction homes would work well for you.
Buying a home is always a big decision, so you shouldn't rush into it. Check out some of the homes we have available at PMI Middle TN if you want to start investing.