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Myrtle Beach Preconstruction Real Estate Sales Reach Record Highs
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Added: 12/13/2004
Type: Summary
Viewed: 1318 time(s)
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Myrtle Beach Preconstruction Real Estate Sales Reach Record Highs
Myrtle Beach, SC December 13, 2004 -- Preconstruction condos are the hottest new investment vehicle to surface in many years. Investors are scrambling to purchase in the first releases of projects in under-priced Myrtle Beach, only to resell them within a few months at huge profits.
Myrtle Beach is booming and condo pre-sales are all the rage. Buyers are able to select the best locations within the buildings at the lowest possible price by purchasing when a resort is initially offered for sale. Plus developers often offer tremendous discounts or upgrade incentives to the first buyers, to establish a dynamic sales momentum for their project.
Preconstruction Real Estate Investments – How does this work?
Typically, a property owner has a piece of land with an old building – a functionally obsolete hotel, for example. The old hotel has lost its tax advantages. It can’t be depreciated anymore, and since it is old, the rental income has also declined.
New resorts require $20 to $30 million to develop, which he doesn’t have. But he does have a premium oceanfront location that his family has owned for years. What can he do with it?
The owner finds a real estate development company, such as Oceanfront Real Estate Company, to design and pre-sell condos for a brand new resort. Banks require that developers pre-sell 70% to 80% of a new resort before they will finance the construction of the project. So investing in the pre-construction of a new resort is a win-win situation for the bank, the co-developers, and for the investors that purchase the preconstruction condos. The original owner will have a brand new resort in which he can retain control of the front desk rentals – a Condotel. The bank is guaranteed to get all of its money back, because buyers will be pre-qualified and the loan will be paid off when the building is finished. The buyer/investor will benefit by being able to choose the prime location and purchase the condo at the lowest price it should ever be.
To purchase pre-construction condos in Myrtle Beach, the buyer or investor will typically execute a reservation agreement with a $5000 refundable deposit. When the building is 40-50% reserved, the buyer will convert this reservation agreement to a standard sales agreement. Additional deposits are then required to total 10% of the condo’s sale price. During this time, the buyer will also be pre-approved by a mortgage company. Then they wait until the building is finished, which is usually six months to a year. At that time, the purchase is completed and they have a permanent vacation home or rental income to enjoy.
Another Option
Many investors decide not to wait until the building is finished, and are actually able to sell their sales contracts (with the developer’s approval) to other buyers for a substantial profit. Typically this happens when the building is sold out completely, and there are buyers who missed the chance to purchase during the early stages, or perhaps decided to buy an additional unit.
Investing in preconstruction real estate is one of the best opportunities for high returns and excellent monetary gains during time of low interest rates and relative national prosperity. Very few investments can offer such a high gain or instant equity – while being secured by real estate. The Grand Strand has been rated the number one favorite coastal destination by tour operators across the nation, and is in the top 20 of America’s Best Places to Retire, according to Money Magazine. Real estate in Myrtle Beach is incredibly affordable even now, but as the availability of water-front land dwindles, prices will surely increase until they equal the unbelievably expensive coastal prices of southern Florida and other prime beach resorts across America. Now is the best time to cash in on this lucrative real estate secured investment opportunity.
For more information, or for information on the newest preconstruction available in Myrtle Beach, contact:
Steve McIntosh, Broker In Charge
Oceanfront Real Estate Company
414 Sea Mountain Hwy
North Myrtle Beach, SC 29582
(843) 663-1101
Toll Free 1-866-372-6952
http://www.oceanfrontinvestments.com
Also see our previous press release at http://www.prweb.com/releases/2004/12/prweb183626.php
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