I spent the weekend at a friends house that he bought a year and a half ago for $450k in the LA area, that is now worth $1.2 milion. He got in on the first phase of construction, and they're now finishing their final 4th phase.
They are building a new project in the same area with homes starting at $700k. Is it too late to make money with this new home construction?
WOW! $450k became over $1 mil that quickly?? I see why you're interested in this new home thing. When the news stations talk about home appreciation, I never hear numbers like that. I guess there are some serious outliers from the average. Can anyone tell us if this is a good way to go right now?
It seems like everyone I talk to has been buying new construction buildings and condos. They're all going up, apparently. It has to stop some time. Any of the projects I hear about are all getting bid up before anything even starts.
But what if the market doesn't go up but instead goes down, stalls or takes him a long time to sell. Wouldn't he be left with a huge mortgage. But then again he could very well make back his investment plus a little more. It is a coin toss! :beer:
Then again, I could get hit by a car when I cross the street.
BEWARE OF FUD!
The market could definately turn, and people will be stuck with large mortgages. I wonder if the pre-construction boom will be affected when prices flatten or turn....
for just one year and a half~
Depending on the area will definitely determine where the market will go. Southern California may see the market turn long before Central Florida or some parts of Arizona.
I know that the central Florida region is booming with pre construction oppurtunities at the moment.
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