The latest from Lili about Boston Real Estate.

Quick Resale Units in New Construction Projects

April 23, 2016 |

With construction of new Boston luxury real estate towers with multiple units and two to three years of projected completion dates, it is normal to pique the interest of both investors and end users. As with any new Boston luxury homes construction project, unit prices keep rising as more units are under agreement to accommodate rising demand. 

Investors will often buy one or several blocks of units to flip after construction is complete, knowing well enough that the developers will increase Boston luxury homes prices as the construction advances. Be aware that you can’t flip a unit in practically most new construction projects until “after” you close. You might be able to have a simultaneous closing if you have a ready and willing buyer/investor. 

In some high end Boston luxury real estate projects, such as 22 Liberty, the number of units being flipped after closing is a good example. Given the luxury nature of the project and it’s location, investors have made handsome profits on their original investment. On the flip side, some buyers and/or end users who are buying to live in a new multiple unit luxury complex might be weary of the number of units sold to investors, who in turn may rent out the units. Typically, investors are interested in smaller units in a luxury residential project, since they're easier to sell or to rent and they don’t have to put all their eggs in one basket. However, that does not preclude others buying larger units at a reasonable starting price and flipping it at a much higher price upon completion, making a handsome profit.

Be mindful of which project to invest in, as not all have the same potential. RESALE POTENTIAL is extremely important to take into consideration when investing in Boston luxury homes, and other factors include the development team, the location, etc.


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