Vacant Residential Lots – Real Estate Treasures
While many people overlook vacant residential lots when considering a vacation home, these pieces of property are looking better and better to real estate investors. The cost of a finished, ready to build lot, can cost a developer about 25 percent of the finished home price. However in today’s real estate climate, these home buying gems are going for a fraction of what they were worth in the past, and even a fraction of what they are worth today.
There are a number of these ready-to-go vacant residential lots on the market at about half what they actually cost to prepare. Investor groups are snapping them up, figuring that the time will come soon when they will be in demand. “The country needs 1.2 million new units for the next 10 years just because of population growth,” says Scott Clark, president of American Development Partners, which has bought thousands of vacant residential lots all over the West. “[U.S. builders] built about 500,000 units in 2009 and 600,000 units in 2008, so there eventually will be pent-up demand. We want to get as many of those finished lots as we can because as demand begins to rise, the need for housing will become painfully obvious.”
Now, more than ever with all the foreclosures on homes many families purchased a lot to plan for their retirement; maybe a source of income was lost and one of the first things to go are future real estate plans. Developers across the country are also trying to meet interest loan payments and need cash quickly–a way to create an immediate cash flow is to cut the prices of existing lots. A little due diligence on the buyer’s side and you can pick up certain vacant residential lots in great vacation destinations at nickels on the dollar. Once you’ve got the lot, you can being considering a vacation home!