Bigger is not always better
Published: May 06, 2013
I have recently been approached by several developers to give an opinion on construction and market value for their projects.
Some of these developers are already halfway into their projects. At this stage, it is very difficult for them to stick to their original plans while trying to fix problems. It’s an issue that could result in loss of profit.
If you are planning to build a home, duplex or condos as an investment, you must first contact your Bahama Real Estate Association (BREA) licensed agent. The agent must have the experience and track record in the area of developing properties in order to provide sound market advice.
Your architect and real estate agent should work together from the very beginning of the project to help determine the best use of the land, spaces and correct building sizes for the area. A proper sized and well laid out home or condo will bring about the most profits. Overbuilding or under building will cost a developer dearly and could mean the difference between profit or loss.
When building as an investment with the intention of selling, bigger is not always better. Functionality, curve appeal and pricing will play a major role when selling a project and will allow you to maximize your profit. For most buyers, resale value is an important consideration, and they will not buy the largest model in the neighborhood.
Building medium size homes or condos in a good neighborhood will allow for the larger properties to help pull up your values. Always remember, by building and designing functional layouts while keeping in line with the neighborhood values, your home or condo will bring about the most profit.
Selling medium-size properties usually presents a great opportunity for younger professionals to buy and invest in a more prestigious neighborhood. These neighborhoods will provide the young buyers greater financial rewards when selling at a later time. It is always better to buy a smaller home or condo in a great neighborhood than to buy what we want at a lesser price in a less desirable neighborhood.
• Carmen Massoni is president of Bahama Islands Realty and has 18 years of experience in the real estate profession in The Bahamas. She has been the recipient of many international awards recognizing her as a top producer amongst her peers.
If you have any questions or need real estate advice, call 322-7770 or email Carmen@BahamaIslandsRealty.com.