Real estate may be all about location, location, location, but real estate investment can be about timing, timing, timing. Just like the stock market, once you make your investment is just as important as the investment you select. And, in terms of property, a pre-construction investment can maximize your return.
The principal 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 permits you to choose among premium properties, whereas later investors can choose only from among the less desirable properties.
What plancher to Buy in Today?s Climate
As the asking prices of single family dwellings are trending downward, there is still enough uncertainty in the market to cause concern. Lately, the attention of investors has considered what exactly 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 for example retail space, restaurants, and pools. Often, investors will purchase a condo hotel unit and use it portion of the year as an extravagance vacation accommodation, while renting the property out for all of those other year. The best condo hotels take care of 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 focused on location, so when considering a pre-construction investment, it?s vital that you find a place where there’s popular 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 as much as 30 percent. And, with the tens of an incredible number of tourists the area draws each year, thanks to 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 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 alongside over 1,200 condo hotel suites as high as 3,000 square feet. To check the accommodations, the Blue Rose is planning to build the Swan Lake Promenade, that will house five themed restaurants, European cafes, private pool cabanas, and a Broadway-style theater that seats 1,000.
Pre-construction investments in top-rated short-term rental markets have a great potential return on investment. Plus, as a result of desirable destination, savvy investors can enjoy both appreciation of property values and great vacation accommodations.