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Investing in Real Estate - Purchasing Residential New or Pre-Construction Homes for Investment

One way to invest in real estate is by purchasing new construction or pre-construction residential homes. This is a highly lucrative way to make profits quickly. Many times your home will increase in value before it is even built.

About ten builders are responsible for over 90% of the new homes built in the United States each year. These builders usually announce when and where they intend to build a new tract of homes well in advance of ever breaking ground. They are looking for areas where there is growth potential in terms of population, marketplace appeal, and ability to buy. They spend many millions of dollars for research to find just the right areas across the country before they begin building. As an investor you can profit from this extensive research.

When a home builder first announces to the community that they intend to build a specific number of homes in a particular area they generally hold an open house for all perspective and potential buyers to attend. Realtors are also invited because it is typical for the builder to offer a 2-4% commission on any homes that are sold through the area realtors. They will set up a sales office where you can see the artist's rendering of the homes that will be built, as well as see brochures showing the floor plans and options that will be offered. Try to visit the sales office quickly so that you can be among the first to choose a floor plan, model, and location that you may be interested in purchasing. See here preconstruction townhomes toronto

The builders often will offer sales concessions to the first buyers to commit contractually to purchasing one of the new homes. These concessions may come in the form of money towards closing costs, a buydown of the interest rate for the first 2-5 years so that the payments will be more affordable, a credit towards landscaping or home furnishings, or other creative means. Their goal is to sell as many homes as possible during this early stage so that they can develop more projects in either the same or other areas. You benefit by having the first choice of model and location within the new development.

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Looking to invest in a Pre Construction Homes? Jeevan Punni Specializes in Niche Market Pre Construction Condos and Homes sites in Canada.