In this episode of Investor Insight, leading home inspector Marco Ganassini, of Frontline Home Inspectors, weighs up the benefits and the negatives attached to buying new versus existing construction. From a cost and maintenance perspective, it's no easy decision.
Video transcript below:
Marco Ganassini, Frontline Home Inspectors
Marco Ganassini: With a new home the components are new. So the probability of a failure theoretically is much less than with a resale home. However with a resale home, the components, the home has been tried, it’s been tested and therefore the initial issues that occur commonly with your home such as leaking pipes, leaking foundation walls, leaking roofs, typically they have been tried and tested and with a proper inspection, a proper view of the property those could be determined prior to purchasing the property.
With a new home, there is also the possibility of an easier time of acquiring tenants. A lot of people are attracted to do sub-divisions of new homes, they are clean, they have been untouched and so on and so forth, whereas the used home or resale home, they tend to be not always, but commonly tend to be little bit more worn.
The lesson learnt here is there are many variables to consider. These are just some examples. The best recommendation I can make to you the investor is do your due diligence. There is a tremendous amount of information available to you. You just have to knock on some doors.