Anybody have a handle on the preconstruction market in Phoenix for investors? Las Vegas is booming, but it's harder to get in as an investor. Just wondering if Phoenix might be the next boom.
I'm looking to get in early enough in a preconstruction in order to have some appreciation in value before the house is built. I don't necessarily want to flip it. I'd like to get in as an investor & then rent it out. As a new investor, I feel better if the price has appreciated a bit, so at least I have some equity in the house at the beginning, kind of like a buffer.
I'm also concerned about the bust you mentioned. I heard stories of bankrupt builders being unable to complete houses. Any chance of that stuff repeating itself.
I am in Florida and I have had great experiences with preconstruction. The one thing I learned was never use the word investor espically if it is your first one. Builders are always nicer to people they think will live in the homes.
In Las Vegas some of the builders are putting a 2 yr deed restriction on the homes. This means a perosn must live in the home for 2 yrs before selling it. So you must declare yourself as an investor in these situations.
Perhaps you could tell us more about your investment objectives. I cannot believe that there aren't better deals closer to home than chasing a boom/bust new construction cycle from half way across the country.
I signed up for a preconstruction house in Vegas about 8 months ago & recently closed on the house. The property went up in value approx 50% during that time & I only had to put down about $10K before closing. This is my first investment property & I intend to rent it out.
I saw that the same builder is also located in Phoenix & I was wondering what the market is like there. I have family & friends in both places, so they could help out with the day-to-day activities for a reasonable fee.
What's been people's experience with preconstruction? Is this a boom just waiting to bust that I should make sure I'm not involved on the short end of the stick? 50% appreciation in less than a year is totally absurd. I'm wondering if this will be the next www.dot.com waiting to happen.
It seems to me that if you can get in early enough on the preconstruction, you're in very good shape. No guarantees, but certainly a good investment.
Chasing 'booms' means being closer to 'busts'.
What are you trying to do with pre-construction?
There are lots of markets where you can buy early in the construction phase. Some builders specifically block flipping of new build properties.
John
[addsig]
I'm looking to get in early enough in a preconstruction in order to have some appreciation in value before the house is built. I don't necessarily want to flip it. I'd like to get in as an investor & then rent it out. As a new investor, I feel better if the price has appreciated a bit, so at least I have some equity in the house at the beginning, kind of like a buffer.
I'm also concerned about the bust you mentioned. I heard stories of bankrupt builders being unable to complete houses. Any chance of that stuff repeating itself.
Thanks
I am in Florida and I have had great experiences with preconstruction. The one thing I learned was never use the word investor espically if it is your first one. Builders are always nicer to people they think will live in the homes.
In Las Vegas some of the builders are putting a 2 yr deed restriction on the homes. This means a perosn must live in the home for 2 yrs before selling it. So you must declare yourself as an investor in these situations.
Perhaps you could tell us more about your investment objectives. I cannot believe that there aren't better deals closer to home than chasing a boom/bust new construction cycle from half way across the country.
i agree with c/k . if you look the best deals will be right under your nose. looking across countyr is costly. ......kenmax
I signed up for a preconstruction house in Vegas about 8 months ago & recently closed on the house. The property went up in value approx 50% during that time & I only had to put down about $10K before closing. This is my first investment property & I intend to rent it out.
I saw that the same builder is also located in Phoenix & I was wondering what the market is like there. I have family & friends in both places, so they could help out with the day-to-day activities for a reasonable fee.
What's been people's experience with preconstruction? Is this a boom just waiting to bust that I should make sure I'm not involved on the short end of the stick? 50% appreciation in less than a year is totally absurd. I'm wondering if this will be the next www.dot.com waiting to happen.
It seems to me that if you can get in early enough on the preconstruction, you're in very good shape. No guarantees, but certainly a good investment.