Featured Image Credit: TikTok/@hardmoneyguy/Rawpixel
Topics: Money, Social Media, TikTok, Property
Poppy Bilderbeck
Topics: Money, Social Media, TikTok, Property
If you're lucky enough to have been thinking about buying a house in 2025 then you should steer clear of 'a home that's about to be built', according to a real estate agent.
While some up sticks and go to live onboard cruises and one person moved into a dumpster instead, others have managed to cut out coffees and avocados and are now able to think about purchasing a property.
However, if that is you, a real estate agent has a word of warning.
Advert
TikToker Hard Money Guy took to the platform earlier this year to warn against purchasing a 'new house' and it's basically all because of what people who bought homes 'before 2020' are going to do - or rather what they're not.
He explains: "I hate to say it but I would not advise anyone to buy a home that's about to be built from the year 2025 to the year 2035.
"We are in a definite catch-22 when it comes to real estate in America and this problem is not going away.
"With unaffordability for everything across the board being at all time highs there is no way people that bought homes before 2020 are going to sell their homes. And I don't care what interest rates do.
"You see, yes in theory, if interest rates come way back down, some people will sell their homes, but keep in mind that if interest rates go down and supply is not drastically increased, it means that the home prices are gonna go up."
The TikToker notes it's 'the same exact reason why home prices now haven't gone down too' explaining 'besides for a handful of states in the south which have too much inventory and skyrocketing insurance costs' that home prices have 'actually come up about four percent this year' across the country.
"Home sales are actually at the lowest level since 1995," he continued. "And the only reason that's the case is because the demand is not there, the demand is not there because the interest rates are so high, people can't afford s**t."
And this is where the new home incentives come in.
The TikToker explains: "What you're going to see is heavy government incentives for homebuilders to build homes across the country - that's the only way to increase the supply.
"This is gonna create economic stimulus, it's gonna create a lot of jobs, it's gonna create economic activity it's not a bad thing.
"But what happens when you heavily incentivize homebuilders? You get quantity over quality."
And the TikToker has broken down the issue even further
The real estate agent argues in a bid to create loads of new homes and quickly, many companies 'cut corners like crazy'.
"They already do it, you can see it go on any of the home inspector pages on TikTok - the guys that are inspecting new construction homes - it's all garbage, s**t quality, cutting corners all over the place and there's a lot more of that coming," he adds.
But should this put you off altogether? Well, if you are looking to buy a home and have you heart set on a new build, Hard Money Guy advises negotiating to make sure you get a 'five or 10 year builders warranty'.
Most of them already come with a one-year builders warranty, but the TikToker urges you go 'protect yourself'.