New construction vs. resale for Florida investors

Investors ask me whether to buy new construction or an older resale property, expecting a one-line answer. The honest answer is that the two carry risk in different places, and which one wins depends on how long you intend to hold.

New construction buys you insurable roofs, current building codes, warranty coverage, and predictable maintenance for the first several years. That matters in Florida more than in most states, because insurance underwriting is where older properties get expensive. The cost is a higher basis, HOA and CDD fees, and often a community full of similar rentals competing for the same tenant.

Resale buys you a lower entry price, established rents, mature neighborhoods, and negotiating room on inspection findings. It also buys you the roof, the panel, and the HVAC on someone else's schedule. Underwrite those replacements as near-term capital expense, not a someday problem.

For a five-year hold I usually lean new construction for the insurance and maintenance predictability. For a longer hold with an appetite for repairs, resale usually wins on total return. Bring me the two options you're weighing and I'll model both.