Real estate may be about location, location, location, but owning a home is also about timing, timing, timing. Like the stock market, when you make your investment is just as important as the investment you select. And, when it comes to property, a pre-construction investment can maximize your return.
The primary pre-construction investment advantage is that you could generally buy a property at a lower price than in the event that you were to wait until after the project breaks ground. Once construction is underway, popular locations and properties can trigger an influx of new investors who drive prices up. A pre-construction investment also allows you to choose among premium properties, whereas later investors can choose only from on the list of less desirable properties.
What things to Buy in Today?s Climate
While the asking prices of single family dwellings are trending downward, there’s still enough uncertainty in the market to cause concern. Lately, the attention of investors has considered what are called condo hotels. These properties generally have both condominiums and luxury suites, and the communities typically have a number of attractive features, such as retail space, restaurants, and pools. Often, investors will purchase a condo hotel unit and utilize it part of the year as an extravagance vacation accommodation, while renting the house out for all of those other year. The very best condo hotels care for the rental management and maintenance, leaving the investor to enjoy her or his property while reaping the financial rewards.
Where to Buy
Real estate is all about location, so when considering a pre-construction investment, it?s important to find a place where there is high demand for short-term housing. In the United States, Orlando, Florida, is one of the best places to get. Analysts estimate that the true estate market in Orlando is undervalued by around 30 %. And, with the tens of millions of tourists the area draws every year, because of Disney World, Sea World, and Universal Studios, the hotel occupancy rate hovers at around 80 percent.
With these kinds of numbers, Orlando may be the perfect place for a pre-construction investment. For example of what?s available, the Blue Rose is really a condo hotel scheduled to break ground in late 2007 and scheduled for completion in 2009 2009. The Blue Rose Resort is likely to offer over 250 condominiums along with over 1,200 condo hotel suites of up to 3,000 square feet. To check the accommodations, the Blue Rose is likely to build the Swan Lake Promenade, which will house five themed restaurants, European cafes, private pool cabanas, and a Broadway-style theater that seats 1,000.
Pre- plancher in top-rated short-term rental markets have a great potential return on investment. Plus, because of the desirable destination, savvy investors can enjoy both appreciation of property values and great vacation accommodations.