Thursday, February 18, 2010

Vacant Lots in New Jersey are a Great Buy

If you want to take advantage of the low real estate prices in Hamilton, West Windor, Robbinsville and other prime locations in Mercer County - but don't want the obligation of a house or condo - think land.  If you've noticed the low prices for housing, land is an even greater value now.  Buy to invest and resell, buy your dream lot to build on someday in the future.

The cost of a finished, ready to build lot can cost a developer about 25% of the finished home price. There are a number of these ready-to-go lots on the market at about half what they actually cost to prepare, nationwide but also in central New Jersey. 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 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. The delta (ratio of change to value of underlying asset) in this investment will be significant."

Contact me for the best locations n Mercer County to buy and hold or buy and build, and use this real estate opportunity for future gain.

Joe Giancarli, Sales Associate

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