Monday, November 07, 2005

Preconstruction Real Estate - Buy Now, Pay Later!

Cash in on pre-sale profits in the country's five hottest real estate markets: Las Vegas, Myrtle Beach, Sarasota, Austin and Tucson. Small deposits on preconstruction properties can bring huge payoffs in appreciation for investors who purchase before building commences in the cities with soaring prices.

The sizzling Las Vegas real estate market is turning up the heat another notch. With over 80% of Nevada owned by the US government, land-starved developers are going vertical to meet the demand for housing in the fastest growing city in the United States. Presales of luxury high rise condos and "condotels" along the Las Vegas Strip are skyrocketing, with over 100 new high-end projects already in progress and more opening at the start of 2006. Developers are catering to sophisticated investors by offering a bundled package of lavish fully furnished units, onsite leasing agents and nightly rentals tied to the local casinos, and the return on investment for these Las Vegas condos is so high that many projects are sold out before ground has even been broken. Anticipated appreciation rates, which hit 39% in 2004, are also fueling the buzz.

Preconstruction condos are selling at a breakneck pace in Myrtle Beach. The release of phase I of Prince Resort at the Cherry Grove Pier was evidence of that when it was sold out ($53,000,000) in the first 48 hours. Investors are snapping up 2 to 3 units at a time, as the Myrtle Beach condos market continues to be one of the most undervalued preconstruction condo markets in the country. Real estate investments continue to be one of the safest investments an individual can make in this day and age. "Getting in early on a preconstruction project can assure the investor of paying the lowest price, and of course, choice of units," says David O'Connell of NewResorts.Com, who has dominated the Myrtle Beach market for the past 7 years. He is about to release a $60,000,000 oceanfront condominium project in the next few weeks.

Another hot area for investors is Austin, Texas real estate. Since the tech market crash of 2001, this jewel in the rough has been of strong interest to investors, especially those who are able to capitalize on their equity from other hot markets. It remains quite affordable for most first-time investors, with Austin homes and condos in the $100,000 to 300,000 range, as well as duplexes. Nestled in the beautiful hill country, Austin is scenic and serene, with a chain of lakes running from west to east and thousands of acres of devoted park land and nature preserves. All in all, one would do well to consider the up-and-coming Austin real estate market as part of a savvy investment portfolio.

Some of the most expensive yet highly sought after property can be found in Sarasota, Florida. As a "city of the arts" and a tropical paradise, Homes in Sarasota will always be in demand. Downtown Sarasota's bay front condos are the hottest real estate in the city right now. (Go to walking distance to Sarasota Bay, theaters, restaurants, upscale shopping, specialty stores and cultural centers world-class amenities are right at your doorstep. Prices range from $300,000 to $10,000,000 depending on location, square footage and water views, for a two bedroom/two bath condo. These top of the line extraordinary new condos offer breathtaking views of Sarasota Bay and the Gulf of Mexico. Inc. Magazine recently named Sarasota as "Florida's next big thing!"

And meanwhile, out in Tucson, Arizona the local real estate market is also heating up, according to Brenda O'Brien, a top Tucson Realtor. While homes in Tucson are still reasonably priced, they are starting to climb at double digit rates. October listings in the Tucson Real Estate Market decreased 20% from the previous year, and the average price of a home in Tucson was $211,240, according to the local Association of Realtors. Tucson new home sales are also booming, and great homes can still be had in the $300,000 to $500,000 price range. Retirees from all over the country are choosing Tucson for the perfect weather and reasonable home prices, which add to the investment potential.

By going to contract prior to construction in any of these cities investors should be able to benefit hugely from the projected appreciation increases before even closing on their purchases. Those who purchase multiple units in several projects should do exceptionally well in 2006 before rising inflation costs drive prices up even more.