According to CalMatters, the ongoing housing shortage is one of the biggest problems facing California. Due to the considerable gap between demand and supply, buying a house is difficult, and many aspiring homeowners are turning to new construction homes.
Many homeowners are even resorting to buying off-plan homes, meaning they're purchasing property that hasn't even been constructed yet. Are you interested in buying off-plan homes in Inland Empire? Read on to learn more about this important aspect of Inland Empire real estate.
The Risks of Buying Off the Plan
There are several fairly obvious risks associated with buying off-the-plan new construction homes. The biggest risk is that the property doesn't actually exist yet. Often, you'll put down a significant deposit years in advance of construction.
A lot can happen in a few years. Your financial situation could change, meaning a once affordable home now doesn't look like such a great investment. The same could happen to the developer.
It's not unheard of for property developers to go bust, leaving unlucky investors high and dry. If the developer becomes insolvent, it's possible:
- The company's liquidator might try to sell the contract to another developer
- Construction might be delayed while the company figures things out
- If construction is effectively canceled, you may need to pursue a breach of contract case
The Risk of Poor Build Quality
There's considerable demand for new construction homes, and sadly, many housing developers are taking advantage of a desperate situation by cutting corners. For example, according to WCSC, the building company D.R. Horton is receiving nationwide complaints about the quality of its newly built homes.
For example, customers have experienced:
- Frequent flooding caused by construction issues
- Defective building materials
- Fundamental structural problems
If you buy a brand-new home, make sure you trust the developer. If you're ever in doubt, contact a professional property manager.
The Advantages of Buying Off the Plan
Of course, one of the main advantages of buying a newly constructed home is that you'll be the sole owner. You'll know the full history of the building, and there won't be any nasty surprises like questionable maintenance decisions from the previous owners.
You also have the freedom to design the property as you see fit. Since the developers are building the home from the ground up, it gives owners a unique opportunity to add custom design elements. If you want a unique space with custom design elements, getting a newly built home is often the only way to achieve it.
Get Help With New Construction Homes
If you're interested in Inland Empire property, you might need to consider an off-the-plan solution. While new construction homes are inherently risky, you can reduce the danger by finding a trusted local partner who understands the Inland Empire housing market.
PMI Inland Empire can provide expert new home purchase tips. We have decades of property management experience and our seasoned local experts stand ready to help you make smart and profitable real estate investments. Ready to learn why we have an A+ rating with the Better Business Bureau? Contact us today to learn more about our property management services.
