The United States real estate market is growing faster than ever. Sarasota has become a pre-construction real estate hot spot. Pre-construction is the most profitable phase of real estate investment. New construction offers a wider choice of location and design, with the most desirable financing options. Pre-construction is considered a healthy investment, making investors rich beyond their wildest dreams. Investors in pre-construction real estate are willing to take higher risks for a chance at big returns.
Sarasota has long been a high-class vacation destination with its pristine white-sand beaches, exciting nightlife, 5-star restaurants and hotels, and interesting mix of cultures. Sarasota’s preconstruction market has boomed in recent years. There are downtown condos, beachfront high-rise condos, single-family residences, and mansions in development. Sarasota is a seller’s market and most properties are only on the market for a short time.
Sarasota real estate prices in its pre-construction stage are significantly lower and more affordable for the investor. Preconstruction sales have shown a significant increase over the years and continue to grow. Investors have the advantage of not having to pay state and local taxes for many years.
Pre-construction bids are generally not announced in the initial stages. Deals are primarily negotiated through a network of real estate agents who sell directly on behalf of developers. Brokers reserve a number of units for their core clientele. The second stage of construction brings with it a 10% increase in price. On selecting a property, an investor pays a deposit of around 10% of the purchase price. An additional 10% is usually paid within the next three months. Investors can sell their units within a year at a profit of 20% or more.
The growing interest in real estate mutual funds shows that real estate investment performance is becoming an important part of a Sarasota investor’s investment portfolio.
