With Prices Surging, Consider the Advantage of Buying Pre-ConstructionMarch 5, 2016
As I've mentioned in previous blog posts, there are many advantages of buying a home in the pre-construction stage. In most cases, you can customize a good deal in Boston luxury homes, but most importantly, the price will be more favorable than waiting until the construction process is finished in order to buy.
In Boston luxury real estate construction, the developers sell a number of units at a certain price and if the demand is high for certain stock, size, exposure, they gradually increase Boston luxury homes prices as the sale progresses. The more they sell, the higher the prices will go (less supply, higher prices). It's not rocket science, as this practice is not uncommon, nor is the practice of buyers buying units and flipping them upon closing. The price paid at the very beginning of a new Boston luxury real estate residential project is by far more favorable than the price for the same unit (if any left) at the time when the construction project is finished. The gain works great for the home buyer or investor, due to incremental price increase by the developer. Combine this scenario with a stronger economy at the time of closing, the Boston luxury homes buyer/investor will gain enormously.
The best example is the buyers who bought at the Residences at the Mandarin a few years ago , or more recently at 22 Liberty, the glass tower at Fan Pier. As soon as the closings happened, several buyers started selling their units and made double-digit returns, at least. Granted they bought at a time when luxury market was just about to take off and the economy very strong at the time of closing.
So, with all the new luxury residential projects, including The Millennium Tower, the New Four Seasons, etc., don’t think too much about the most ideal home. Think of a great home in a luxury building with great profit on your investment. It's prime time to invest in new construction throughout Boston neighborhoods.