With the recent turmoil in the American financial and housing markets, many potential home buyers are unsure if they should purchase a house in today’s climate. Record low mortgage rates are difficult to ignore but high foreclosure levels and dropping property values are causing many buyers to be cautious.
Many individuals who are in the market for retirement property also wonder if they should purchase now or wait to see what the economy might do. Some look at existing retirement community property and wonder if its value will drop in the future or if it will experience a high vacancy rate which will impact its value.
Individuals who purchase preconstruction property can avoid some of the uncertainties of today’s real estate market and can actually experience some unique plusses. Those who are buying preconstruction during today’s recessionary environment can experience the following advantages:
Market appreciation – property prices are typically lower at the initial stages of a construction. After the ground breaking, real estate values typically increase as other buyers see the project becoming a reality.
‘Price Creep’ – property prices tend to go higher as a property develops, more demand is created, and the property developer has the opportunity of raising prices from initial levels. When this happens, investors who bought earlier tend to see their property appreciate in value.
Design Customization – purchasers of preconstruction have the opportunity to personalize their new homes with the flooring, window treatments, and other design accessories of their choosing. Individuals who purchase existing property must settle for what is in place or go through expensive renovations.
Choice of Units – reserving early allows preconstruction buyers to choose the best floor plans, views, and locations.
Financing – since preconstruction properties typically take 18-24 months to complete, investors do not have to tie up 100% of the property’s value in financing. Deposits can be made during the construction period allowing time for funds to be gathered. Once construction is completed the balance of your down payment is made and you close on your new home.
Home Sale – preconstruction buyers also have more time to sell their existing home. Given the timeframe for project completion, preconstruction buyers can avoid the anxieties of those who purchase existing properties and so must sell their current home quickly.
The Denver area has long enjoyed a healthy housing market and this has proved true in the current recessionary period as well. Recent stories in both Forbes Magazine and on NBC’s Today Show have emphasized that the Denver area real estate market is strong and poised to benefit further from the recovering economy. Investors who purchase Denver-area properties know that they are buying in an area in which property values are likely to increase and existing homes typically sell within a reasonable amount of time. Given the numerous natural and cultural amenities of the Denver area, those who choose to make their home at GrandView of Roxborough will do so knowing that they’ve made a smart financial investment which will also allow them to experience the many advantages of living in the Rocky Mountain area for years to come.
