But have you considered the idea of building a brand-new home from scratch to use as an investment property? While it can seem like a slightly daunting prospect, it’s actually a very easy and safe process for local and long-distance investors alike.
The most obvious question is: why should I build a brand-new property instead of investing in one that already exists? There are many benefits to building a new investment property, but the principle one?
Customization.
When you build a brand-new home, you can tailor it to create the ideal investment property. If you have an ideal tenant profile, you can build a home that matches their needs. You can build to minimize potential future maintenance, and you can avoid overbuilding to ensure you’ll be making the absolute maximum income.
We already know Edmonton is a buyer’s market and real estate investors across the country on focusing here so they can take advantage of the current market. This means, with a minimal deposit today, you’ll be able to lock in your construction costs and lot prices at the current low rates. Also, lenders are offering very aggressive fixed term interest rate options making for some attractive financing options.
Your money will be working for you all the way through construction before you even have a tenant in the home.
The exact amount of time it takes to build a house can vary, as it can depend on many factors – sourcing the perfect lot, permitting time with the municipality, the size of the home, and weather disrupting the builder’s schedules - all these factors will all affect the final timeframe. However, as a general rule of thumb expect the building process to take approximately six to eight months from beginning to end.
The phases of construction on a new home can be broken down as follows...
In this phase, the plans are presented, design and finishing decisions are made and building permits are in progress.
This is when the land is prepared for construction and physical building begins. The foundation is poured, drainage is installed and utilities such as water, electricity and cable are made available to for future hook-ups to the home.
Framing is when the exterior shell or frame of the house is built and the doors and windows are installed. The building really starts to take shape at this point.
Here, the home as you envisioned, start coming together. Plumbing, venting and electrical wiring are added.
This is where the home gets insulated and drywall is installed, followed up with taping, mudding and fresh paint.
This is where your house starts to look like a finished home. Kitchen and bathroom cabinets are installed, interior doors are hung, baseboards and door casing installed, flooring gets installed and plumbing and light fixtures are all installed in the finishing stage.
At this point, you can conduct a final walk-through of the new home, order any last-minute touch-ups and receive the keys.
Of course, if you're talking about a quick possession home, well... then the timeframe is completely different! If you're the type of investor who wants to get in now, you should seriously consider this option.
This may all seem fairly overwhelming at first glance, but with an experienced, professional real estate company to guide your investment journey it doesn’t have to be. TriUrban is extremely experienced in selecting the right areas to build in. We pride ourselves on our experience in choosing the right home specifications towards the perfect investment property, and constantly innovate the designs with our builders, to consider your needs as an investor.
If you'd like more information, or want to get in early to our pre-sale program, click the button below and get started today!