Searching for the right home or housing option is an exciting and sometimes irritating task. As a lot of choices are present in the property market, many factors influence a potential home owner's choices, and these range from homes that are fully or partly furnished, ready for occupancy, or in the pre-construction stages.
Some home buyers refer purchasing homes ready for occupancy, as they would like to better view the end result of construction, and assess if the completed home fits their preferences and tastes. Some would also prefer buying pre-construction homes, as many developers who offer these deals give special discounts, rebates or other privileges to those who buy in advance.
What Are Pre-construction Real Estate Offerings?
Pre-construction real estate investment refers to the art of buying properties, usually condos or townhouses, at a very early stage of the construction process. Profit is acquired from then selling it months or sometimes even years later at a substantial difference.
Ready for Occupancy homes are generally offered to buyers on a completed phase, and buyers purchase the home based on the prevailing rates or prices set by the developer, though the mortgage options could be arranged to suit a home buyer's payment preferences.
Why Do Individuals Invest In Pre-construction Real Estate?
Investing in pre-construction real estate has been present for decades, but only until recently has it been getting this much hype. This is quite reflective in the Orlando, Tampa, Miami housing markets and other resort areas.
There are many theories that will explain why the investment real estate market has seen so much growth. The truth is, several factors fuel this explosive market. The first major factor is that the US dollar is currently weak. This is prompting foreign investors to buy US land as an investment. In turn, these foreign investors are not only investing in the real estate but in the currency market as well.
The second factor is the high fluctuation in the stock market. Stock values vary more frequently than ever before. This compels the average stock market investor to become more involved in their investing strategies to turn a profit. Most individuals do not have time for hands-on investing, and this results in bringing investors to pre-construction deals because it is one of the most hands-off forms of investment.
Many View Pre-construction Investing As A Good Option
Many consider investing in pre-construction real estate as a very profitable investment option. Not only is real estate in areas like Orlando, Tampa, Miami, and Las Vegas are booming, but so are pre-construction developments in those areas as well. When a developer plans to build a resort, they first need to come up with the capital to do so.
With banks currently quite reluctant to lend many for all these projects developers are looking to pre-construction investors. Pre-construction investors are people that purchase the developer's projects before they are even started in order to give the developer seed money for the development to get off the ground
But Why Isn't Everyone Getting Into Pre-construction Deals?
Some analysts are asking, "if there is so a lot of money in pre-construction real estate, why isn't everyone doing it?" This answer they say, is quite simple; as there are not many pre-construction opportunities currently, and when the opportunities do arise, they are sold out in days, if not hours.
Also, serious investors are going after available pre-construction opportunities so quickly, that home builders are saying that they don't have to advertise to sell their property. It is not uncommon for developers to release all of the project's pre-construction units at once. In the time span of one workday, it is not uncommon to see all available units of a pre-construction offering reserved.
http://realestatepress.org - Real Estate Press
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