Making a preconstruction investment may seem a bit risky, but there are some
definite advantages to a preconstruction investment over purchasing a house
already complete. The most significant is that you can tailor the construction
to the desires of a buyer, thereby increasing the pool of potential buyers – and
the return on your preconstruction investment.
These details may be as minor as increasing the size of a walk-in closet or
changing the color of tile in the bathroom, or as major as making the house
handicap accessible. Consider the problems that face some people who are looking
to buy a home.
A person who is confined to a wheelchair or who needs specialized medical
equipment probably needs wider doorways simply to gain access to a room.
Offering that person the ability to make those decisions early is often a way
for you to make a good return on your preconstruction investment and for that
person to get the features they need. Wider doorways, accessible shower stalls
and other modifications are only practical as part of the design – alterations
are not typically cost effective or feasible.
Your preconstruction investment may be tied up for a long period of time, but
offering options can shorten your selling time. People may want to buy early in
construction to give themselves more say in how the home is completed.
But it’s not only homes in the suburbs that make good sense for this type of
preconstruction investment. As more retirees choose particular parts of the
country (and the world) for their later years, there’s more emphasis on making
those construction decisions. Preconstruction condo investment and
preconstruction resort investment opportunities can offer excellent returns on
the dollar. And you may find that preconstruction investments in Florida, Texas
and other areas that attract retirees are plentiful.
Consider the typical retiree who is looking for a home in these retirement
communities. They typically have enough money from a lifetime of hard work to
afford the home they desire. Most are not looking to make a return on this
investment, but are willing to pay someone else for their time and effort –
someone like you, who worked on this preconstruction investment.
Unlike simple decorating details (color of tile, etc.), changes for handicap
access are something that can be anticipated and might very well be a good part
of the preconstruction investment. This is especially true of neighborhoods that
are attracting a large number of older people and retirees. Even if those people
are not already facing health issues, they know they likely will at some point.
Being able to tout those accessibility features may be the selling point that
increases the return on your preconstruction investment.
Early selling may also increase you preconstruction investment return. People
are often willing to pay for the privilege of being able to choose decorating
schemes and making minor alterations. If you bring in potential buyers early in
the construction phase, you’ll need architect renderings (not floor plans) or a
model home for a visual enticement.
Your preconstruction investment may very well take more thought and planning
in order to make a good return. But one of the biggest advantages is that you’re
not limited to working with what you have. You imagination and budget, coupled
with the local real estate trends and market, are all that limits what you can
make of your preconstruction investment.
