Housing Value Decline?
I am fairly new t o Real Estate.....my partner and I have started a new company which will purchase properties for rehab, rent, flip or build and develop. We have a construction firm which has been in business 1990 / we also perform lead & asbestos abatemet and have experience with mold (all of which we will utilize (when necessary) to upgrade purchased properties. Our new company will obvioulsy hire our contracting firm for our GC needs.
With the esculating fuel prices, potential housing value declines, etc......is there areas to pursue now: smaller energy effecient homes?.....condos?.....areas of the country to avoid? or simply wait...I believe real estate can always be good.......you just have to be more screwd at certain times.
Your input would be greatly appreciated!
Thanks for your input: initially I was thinking purchase rehab and flip.....but buying land and building now looks very attractive, especially if I build with Energy Star in mind (I feel energy efficient homes will now be very important, and I will utulize appliances to also help achieve the Energy Star Approval).
+ I have come accross some land locally (just going on the market) which has a road developed, 12-13 .5 to 1.5 acre lots, underground utilities & Great Mountian Views.........the lots begin at $ 73,000 up to about $ 100,000. No houses built yet but anyone who builds there has to meet certain building requirments; minimum 1,800 sf per house, 2 car garage and only certain styles.......this gaurantees a nice neighborhood.
I feel the lots are priced fair and if we put up the first house we may get asked to build others. My only worry is the elevating fuel prices and possible housing-value pullback everyone is talking about.....these house would have to be priced $ 350,000 minimum. On the other hand one look at location (mountain views, close to town, guaranteed good neighboring houses) and a good ecomomy or not these will sell.
Thanks again for your input and I will look at growth and income statistics more closely....the average household income in this area may not be too high but there are plenty of people with money, NYC now buying up here and more incubators being added: Mass MoCA, Lowes is coming among possible others.
Have a good night!
The fact that they are lots rather than row land is
huge plus. Is it owned by an association? the reason I ask is because the rules for high or low standard requirements, usually the Town does not interfere with the floor design and quality, one dwelling per lot yes, distance between structures yes, but usually is up to the builder/developer to decide on how mush he wants to invest in construction. I really would like to know if in MA is so.
Unless,,,,, this land is part of a bigger parcel that they already have established the standards, I know some body has, who????????? Please let me know when you know.
If is not officially listed with a broker why not contact the owners direct? I would try it before is too late. May be there is more land there than what they are selling, (that would explain the set standards). If you are really interested go for it now. Often brokers when they see a good deal they grab it for themselves
Konte
The property is owned by a corp/individual.....land was purchased subdivided, road put in, utilities, etc. There are requirements for setback, additional requirements include: min 1,800 sf, home are styles are resticted to colonia, capes raised ranch, victorian, no log cabins or no single story. The protective coveneants and restrictions are to ensure integrity and uniformity of the community (almost like gated community without the gates). Once you begin to build you must complete in 18 months. There is also an annual fee of $ 150.00 to maintain common areas and detention basins.
My estimate of $ 350,000 would be the minimum......I have an idea what houses are going for in the surrounding area and much over $ 420,000 may have a problem selling unless you add 3-5 acres. Getting a buyer ahead of construction is a good idea, which I may pursue.
If I build w/out a buyer I would keep the interior fairley nuetral and begin persuing buyers after sheetrock & prior to cabinets and some flooring allowing for upgrades.
Who is the most popular Realtor in your area, I would pay them a visit to discuss your plan. Ask about their method of promoting your project,see what interest they expressTalk to a good Architect for the plans for minimum 3 designs. Building a Model Home will attract more lookers. The Architectural drawings are very important in order to close sales and get money in advance.