Trulia Queens, Other/Just Looking in Queens, NY

Which is considered the better investment, a new home or an existing home?

Asked by Trulia Queens, Queens, NY Wed Apr 10, 2013

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Investment is all about current income, value retention & profit and depends on how long the investor is looking to hold the investment. For an income investor an existing home that is in average to good condition will yield better return on investment as most likely the purchase price will be substantially lower than a newly build home while rents being approximately the same. For a short term flip investor buying an existing home would also make more sense as the purchase price will again be substantially below the new home and the if the investor is a builder/contractor or partnered with one they can renovate the existing home and sell it at a greater profit than purchasing a new home.
Each investor buyer should sit down and do the math before making any investment.

Thanks

Sanjeev Ahuja, NMLS #148731
Mortgage Broker
Home Funding LLC
110 Jericho Turnpike Ste 214
Floral Park, NY 11001
Direct Phone 917-517-2552
NYS Registered Mortgage Broker, Dept of Financial Services, Loans arranged through third parties (NMLS # 885573)
0 votes Thank Flag Link Sat Jan 11, 2014
It depends on the location. New homes are not necessarily better if they are poorly constructed.
0 votes Thank Flag Link Wed May 8, 2013
that all depends on what your budget is. new homes are generally more expensive, also depends on the area. most areas in nyc are existing homes. most new construction are found in suffolk, westchester county and Nj
0 votes Thank Flag Link Wed Apr 24, 2013
I think that overall a new home will do better than an existing one. For most markets, a new home with the same square footage and # of rooms, garages, etc. will have more or less the same value as the existing home. The advantage comes with the fact that the new home will be more desirable because of the age and buyer's would be willing to pay slightly more for the newer home (at the moment you go to sell) than the older existing house.

I'm curious to see what Realtors have to ay about this?

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648
0 votes Thank Flag Link Wed Apr 10, 2013
Hi. It all depends on the price and layout. An existing home is sure cheaper and if the layout is, let's say 3 over 3, most likely it would have the same income potential, talking about similar homes in similar areas. While a new home may have $3000 of monthly mortgage minus $3000 of rental income an existing home can have $2600 of monthly mortgage minus $3000 of rental income. And that's a positive balance right there. In Queens, NY you can get an exact deal like the one o just gave you EASILY. Please message me if you have any other question. ;)
0 votes Thank Flag Link Wed Apr 10, 2013
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