Hi,
I am actually looking for a condo for myself, but I see “Investor welcome” and “Investors currently not welcomed”
What does that mean? What do investors get that an ordinary home buyer wouldnt?
On these condos Centex says “investment opportunites not available” (Bottom right in red)
http://www.centexhomes.com/Washington-DC/357073_Plan.html
These condos are being offered to investors.
http://washingtondc.craigslist.org/nva/rfs/213986655.html
“Investors not welcome” means exactly what it says – if you are not planning to purchase as an owner occupant, your business is not wanted.
In preconstruction, investors don’t get any special deals that are not available to the owner occupant. Investors who need financing, however, sometimes have a hard time finding a lender who will give a non-owner occupied loan on a “non-warrantable” property.
The condos you are seeing that say no investors are being sold with the agreement that you can not rent or lease the condo for at least 1 yr and you can not sell it during the 1st yr. This is done to control pricing by the developer.
Ok, thats makes sense, because these condos are going to appreciate big time within the next 2 years.
Dont be so sure with condos appreciating alot. What are are you looking at for the condos…
Hey blueboxer, how do you spell bubble? The only way to know for sure that you will get appreciation is to buy them cheap. That means distressed. If you buy them retail, you are gambling not investing.
Being a investor it would be a good idea for me to purchase a home that would be a good investment. But to be honest, I am not thinking of this home as an “real estate investment” but as a home. Of course, as anyone, I would like appreciation, but I am not buying the home for that reason.
I personally would never buy an home for myself or for investment purposes on the concern of appreciation, because you never know whats going to happen, especially here in Northern Virginia where the market has changed big time within the last 12 months.
I have seen a lot of investors purchase small old homes in the area, tear them down, and put up brand new big homes, and are selling them for $200k more than the comps (homes right next door). Last year they were able to do that this. This year, there stuck!
For my own home, I look for a place I love. I am going to be there to raise my family not to make money. It is like my wife. I didn’t marry her because she was going to make me rich (although she has a nice executive job and makes a lot of money). I married her because I wanted to build my life with her. Personal residences are different from investment real estate.
it means the builders losing his shirt and is dying to offload his inventory on some unsuspecting newbie fresh from a real estate course!
I think in most cases “investors not welcome” means “speculators go away”.