Is buying new construction in Houston a good investment?

Hi Pauline!

I'm not a financial advisor, but I would opine that a new construction would be a good investment. (There are some financial advisors that say any home that you purchase for yourself to live in is not a good investment because it doesn't provide cash flow, but that is another argument! LOL)

A new construction will be built to today's building standards and building codes, and will usually come with a solid warranty from the builders. Everything will be brand new, so that's nice. The buyers will pay full retail price, but usually builders offer incentives, such as little or no down payment, money toward closing costs, free or discounted upgrades, etc. The first homes built/sold in a new subdivision usually appreciate in value by the time the last ones in the same subdivision are built/sold, and sometimes, builders will offer a lower price to the first 3-5 homes sold to make up for the noise and other discomforts of living in basically a construction zone while the rest of the homes are being built.

It has been my experience that many first-time buyers don't think they can get into a new construction because they think new constructions are too expensive, but there are definitely some affordable new builds out there, as well as some great incentive packages.

Please note: I am writing about subdivisions being built by the same or several builders. Buying a piece of land and having a builder come in and build just one customized home will be quite a bit more expensive.