Smart Pre-Construction Investing = Equity
Pre-construction investing in Florida oceanfront homes and condominiums can be extremely lucrative.
Equity Growth. Because the closing date is a long way off, the buyer gets the full benefit of any price appreciation from the day they sign their contract to the day the project is complete and ready for occupancy. The earliest buyers get the most time benefit to grow equity. Price appreciation comes from either developer price increases on homes purchased later in the project, or general market price increases during the time it takes to build the project.
Leverage. Because the early buyer is receiving full benefit of price appreciation on the entire purchase price, while only having the deposit up, the buyer takes advantage of the financial leverage of having a small percentage of the price accrue the equity appreciation of the total. If the developer allows a letter of credit for the deposit, or pays interest on a portion of the deposit, the financial incentive gets better.
Currently, pre-construction investment opportunities are available at The Abacos at Salt Run and The Beach Club Cottages at Ponce Inlet.
Cranewoods Development
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Florida Coastal Real Estate - Seaside Views
