Why new developments are important for real estate investments

The Delray Newspaper announced today that the property located at 327 Royal Palm in Boca Raton had closed on a construction loan and the real estate developer (a local company) is already building an ultra-luxury condominium community. While Group P6 is targeting its completion for the new project by December of 2017, we are eager to point out the importance of new developments or new construction for people looking to invest.
While several of our luxury condominium developments have proven to be sound ventures for both owners and investors, residents such as people living in Townsend Place and Toscana welcome new developments as an opportunity to see their property transactions have been practical.

Most real estate developers will tell you that quality of infrastructure is the top factor that influences developers and motivates them toward a purchase. Boca Raton has an incredible growth spurt over the past decade leaning toward new infrastructure such as Hotwire Communications who is predicted to open a speedy internet company creating close to 400 jobs. While this Philadelphia-based company will build their new offices in places such as Fort Lauderdale, this will undoubtedly have an effect on people living in Boca Raton as well.

Another great sign that the area continues to grow and flourish is when roads and schools are being built. Boca Raton currently is seeking alternative ways to build more K-12 schools as the current neighborhoods continue to grow and new schools are needed. A recent article found in the Sun Sentinel describes the need for creating more places for children to learn. Both residents and educators have expressed a need for transportation as well as facilities. Although this is an ongoing issue at the moment, this is a positive sign the community is growing.

According to Great Schools.org the city is rated 9 out of 10. This is great considering we're discussing real estate as an investment. Whether you're looking to purchase property as a place to raise a family or you're looking strictly at a venture, areas where schools have high ratings are places you can entrust with confidence.

Another indicator where development is pointing toward productive investments is new road and bridge construction. You can find several projects throughout Palm Beach County such as the I-95 interchange at Spanish River, Glades, and Yamato. Currently, it may be inconvenient driving in these areas. However, for those looking to plunge into solid investing this road construction brings good news.

So far we've seen several catalysts point toward Boca and its neighboring areas as super initiatives for those seeking real estate opportunities. But, wait it gets even better!

Low tax alternatives are always a good indicator investors may be on the rise. Florida itself is an excellent and favorable place where the tax climate makes owning and operating a business profitable. There are several reasons to consider such as the lack of income tax for limited and S-type corporations. With the many advantages that the state itself offers, it's a wonder not everyone is for opening their company doors in this city.

Any new investor will quickly learn there are fundamental factors to take into consideration. A few of these may include your personal and business growth, and a broader view of what the market has done over the last 5 years. Because any investment is at risk, by familiarizing yourself with the history of the market will lead to a more stable portfolio. Luxury homes continue to be a place where both local and international investors seek safe places with low-interest rates to obtain superior returns. While the market remains a level playing ground, predictions of another recession is often topic of discussion. We have no idea to know what will happen to economic growth once the new president is in office, we can rest assure real estate properties will accommodate over long periods. In other words, there's less probability the property you purchase will decline over time. If anything the prices go up rather than down. We know this can be particularly true in areas such as Boca Raton, Delray Beach and West Palm Beach where the sales and home prices are on the rise.

In addition to all these indicators mentioned thus far, Boca Raton continues to find ways to make an environment-friendly city. City officials continue to look for areas of improvement and educates the public regularly on their efforts. Organizations such as The Florida Bar Environmental and Land Use Law work in close collaboration with residents living throughout Florida toward ways they can improve things like landfills and other renewable energy.

Businesses and resident communities such as Mizner Grand take a proactive approach to sustainable living. One project on the horizon is to improve public transportation and bicycle trails for commuters. Another is making sure there is ample supply of city trash receptacles. In many ways the city is years ahead of developing secure and green friendly practices for environmental safety. People who wish to invest their real estate dollars look toward environmental issues as signs of a flourishing economy and substantial investment.

With the many factors we've highlighted in this blog, you can see why Boca Raton is a well sought after area for those seeking places for future income streams. With a healthy economy, growing communities, robust job market and infrastructure, it's no wonder this area has credible performance.

Over a 10-year period, you should seek low volatility that is about equities. Any area where there's a highly competitive risk-adjusted return should heed a good profit margin. These highly tangible assets are also attractive and a stable income of performance. Of course, as we are partial to this area, we became that way because of the benefits of living and purchasing properties here. As the economy continues to expand, we know there's a great chance for higher capital value. Since real estate is a distinct asset class there's flexibility in building your portfolio.

If you or someone you know is looking to sell a property in Palm Beach County, contact our luxury specialists for assistance.