Is it too late to buy new construction projects?

7 Replies

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.

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....

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

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.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here