New Home Builds Vs. The Fixer Upper in Washington DC: Which is the Better Investment?
There are a lot of factors that come into play when you’re thinking about investing in the Washington DC real estate market, but the question of which property type comes out on top in terms of investment depends entirely on the kind of return you want and can get from each option. There are numerous housing options in Washington DC, and choosing the right one can hugely impact your finances and lifestyle.
However, there are two main ways to invest in real estate; the fixer-upper or the new home build. Each has its own unique pros and cons, but which one should you choose? The Fixer Upper Washington DC vs.
New Home Builds Washington DC can make all the difference in your long-term returns, so let’s dive in and compare them head to head!
When it comes to investing in real estate, the number one question people ask is whether they should invest in new home builds or if they should go with The Fixer Upper. If you’re looking to buy real estate in the Washington DC area, here we take an in-depth look at both new home builds and fixer-uppers to help you determine which type of property works best for you
Why Investing in a House Feels So Rewarding
There’s something about owning a home that feels so gratifying. Maybe it’s the fact that you’re building equity each month or that you have a place to call your own. Whatever the reason, there’s no denying that investing in a house is one of the most rewarding things you can do. And when it comes to real estate investing, location is essential. And there’s no better place to invest than in our nation’s capital, Washington DC. Not only is DC home to some of the most influential people in the world, but it’s also a hub for business and politics. That means there’s always a steady demand for housing here.
The Growth Potential of DC Homes
There’s no doubt that Washington, DC, is a desirable place to live. The city has a lot to offer residents, from great job opportunities to many cultural attractions. And as the nation’s capital, it’s also a very stable place to live. These factors make DC an attractive option for those looking for a new home. With so many historic buildings still standing and housing construction being built on a daily basis, the question remains: which is the better investment? New home builds vs. the fixer-upper?
The Pros and Cons of Investing in New Builds
When it comes to investments, there are a lot of factors to consider. But if you’re looking at investing in a new home build in Washington DC, here are a few things to keep in mind
Pros
Like when you buy a new home build, you are the first owner. This means that everything in the home is new and under warranty, saving you money on repairs down the road. So, buying a new, move-in-ready house provides several advantages you won’t find anywhere else.
- First, new home builds tend to appreciate at a higher rate than fixer-uppers. This is because, with a new home build, you’re getting all the latest and greatest features and amenities buyers are looking for.
- Second, new home builds tend to have lower maintenance and repair costs than fixer-uppers. This is because everything is brand new and under warranty, so you won’t have to worry about expensive repairs for many years down the road.
- Moreover, new home builds are often more energy-efficient than older homes, saving you money on your utility bills each month. And new home builders usually offer various financing options to make buying a new home more affordable.
- And lastly, new home builds are more likely to be sold for full price on the market due to their high demand. New homes may be your best bet if you’re considering buying an investment property in Washington DC!
Cons
- One of the biggest cons of buying a new home built in Washington DC is that you may not have much-negotiating power with the builder.
- Additionally, new home builds generally cost more than fixer-uppers.
- You also may have to wait longer for a new home build to be completed than if you were to purchase a fixer-upper.
- Another con is that you may not get exactly what you want in a new home build – for example, the builder may be unable to accommodate all of your requests.
- Also, hidden costs may be associated with buying a new home, such as HOA fees or other charges that are not initially disclosed.
Factors To Consider When Deciding Between New Home Builds and The Fixer Upper in Washington DC
Location – With new construction, you have the opportunity to choose the perfect location for your home. With a fixer-upper, you’re limited to properties that are already built.
Cost – It’s no secret that new construction homes cost more than fixer-uppers. When considering a fixer-upper, you’ll need to factor in the cost of materials and labor.
Time – Building a new home takes time – often much longer than it would take to renovate an existing property. If you’re not patient, a fixer-upper may be better for you.
Warranties – When you buy a new home, it likely comes with a warranty from the builder. A fixer-upper will not come with this protection.
Renovations – Your ability to make changes to a new home is limitless! Not so much when dealing with an older property.
So, how do we decide which one is best? In my opinion, deciding between a new home build vs. a fixer-upper boils down to how much money you have and how much patience you have as far as the timeline goes. New home builds require large sums of cash up front, but you get a brand-new place to call your own. Fixer-uppers require smaller sums of cash upfront, and you get the chance to put some sweat equity into the project before it becomes yours. But because home renovation projects tend to last longer than they do with new construction, there’s always the risk that market conditions will change and render your investment worthless.
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Are you considering a home building or remodeling project in Washington, DC? Not sure whether to go for a new build or a fixer-upper? The above new home builds vs. the fixer-upper points may help you decide. Whether you are planning to build a new home or need to renovate the fixer-upper, Homednb is the place to hire trusted and reliable contractors. We make the whole process transparent and hassle-free with vetted contractors at a fair price. So, let us manage and monitor your project from start to finish without any hassles!