Getting into new real estate developments provides a great financial opportunity, particularly for first time buyers. Since first-timers only need to put 5% down on a home purchase, they are prime candidates for taking advantage of new real estate developments.
If you look at major cities, just like Edmonton, there is plenty of new home construction going on. The trick is getting into the most lucrative development that you can afford. How do you know which development is best? There are a couple factors you can look at to determine which development will provide you with the greatest profit on resale.
1. Location: Is the real estate development near many amenities or easily accessed by public transit? Are there schools and major arterial roadways nearby? Are there plans for any new attractions or businesses nearby?
2. Is the area established or up and coming? This can be beneficial either way. Established areas with new real estate developments often mean there is a facelift going on, and a face lift can mean new businesses, new roads, new schools, the works! Buying an already existing home in an area like this is a good idea. Post face-lift, the value of your home may increase significantly. If it is a new development, you will find the homes are affordable during development and increase significantly in price once the development is complete.
In Edmonton, a great place to buy at the moment would be in the downtown core of Jasper Avenue. There is a general face-lift happening downtown with a specific new development happening in the soon-to-be arena district. The state-of-the-art condos that are being built are very close to the planned site of the NHL arena. Since the arena does not exist yet, the condos in theses towers (Ultima Tower and Fox Tower for example) are still quite affordable. Think about the value these real estate developments will hold once the arena is built.