A new home construction can be an excellent investment-especially for commercial and residential property owners who are looking to avoid the ongoing repairs and maintenance that inherently come with older homes. Real estate investors are looking for properties that will return a decent amount of their investment (ROI).

The Cap Rate (or Capitalization Rate) is a simple way to see if an investment will make money. The Cap Rate (or rental income minus expenses) will show you how much money is coming in and going out.

High rental demand and new construction property can yield excellent returns. Continue reading to find out about the advantages and disadvantages of investing in a new home whether this strategy suits you.

WHAT IS NEW HOME CONSTRUCTION?

A new construction property is a home that you buy directly from a developer or builder.

There are many advantages and disadvantages to buying new construction homes in Myrtle Beach SC. Before making any investment decisions, it is important to do extensive research. It is a smart idea to look at the past properties of the developer and see how they have held or appreciated over time.