Preconstruction Investment
Offer Options for the Best Return on Your Preconstruction Investment
Oct 18, 2005, 19:15

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.

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