Is it too late to buy new construction projects?

Question

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?

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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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really?
for just one year and a half~
 :goofy:

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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....

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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.

Jason Barnett · Answer

BEWARE OF FUD!

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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.

Mark Davis · Answer

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?