BiggerNews: 2024's Cheaper, Better, Cash-Flowing "Sleeper” Investment

BiggerPockets Real Estate Podcast

Are new construction homes a good investment right now? Well, that depends. If you want a lower price for a property in a better condition, with a lower mortgage rate and the ability to charge more rent, then new construction homes are what you need. This “sleeper” investment is now cheaper to buy than a regular rental property, but since it’s a new build, it comes with a fraction of the headaches and repairs than most “used” homes. So if they’re cheaper, better, and make you more money, why isn’t everyone buying a new home?

Kathy Fettke has been investing in new construction homes for decades. At first, it was just a way for her to have a more passive real estate portfolio. But now, she knows she can make much more with new homes than buying existing rentals. Since so much of her portfolio is new builds, we brought her to the show to share why this investment may be the best on the market.

We’ll get into new construction pricing and why new homes are CHEAPER than existing homes but offer better amenities, safer structures, and often much lower insurance prices. Next, how to get a rock-bottom mortgage rate by negotiating with builders (we’re talking three or four percent interest rates!). Plus, Kathy shares precisely how to ensure you’re buying a new home in the path of progress so you can rake in appreciation.

In This Episode We Cover:

Why new construction rental properties may be one of the best investments of 2024

Saving serious money on your mortgage with rate buydowns paid for by the developers

Why new construction home prices are CHEAPER than existing home prices in 2024

Buying in the “path of progress” to ensure your home value keeps growing

Factoring in appreciation into your next deal and whether you should account for it at all

And So Much More!

Links from the Show

Join BiggerPockets for FREE

Let Us Know What You Thought of the Show!

Pre-Order Kathy’s New Book “Scaling Smart”

Property Manager Finder

See Dave and Kathy at BPCON2024 in Cancun!

We’re in a Home Construction Golden Age—Here’s How Investors Would Benefit From Building

On the Market Podcast

Connect with Kathy

Connect with Dave

(00:00) Intro

(02:03) Buying New Homes at a Distance

(06:42) The “Path of Progress”

(11:11) New Homes vs. Build-to-Rent

(19:25) Get a Lower Mortgage Rate

(24:14) Where (Not) to Buy

(30:10) Forecasting Appreciation

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1014

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [e-mail].

Learn more about your ad choices. Visit megaphone.fm/adchoices