For many recent years the Scottsdale, Fountain Hills, and Paradise Valley custom home market was a very lucrative business to be in. Whether you were a builder or a buyer there were handsome profits to be made. In the recent recession, the luxury market has not been immune to a severe downturn.
In several of Scottsdale's and Fountain Hills' high profile luxury golf communities including Whisper Rock, Mirabel, Troon, FireRock , DC Ranch and Desert Mountain, sits a nice selection of inventory that are now priced well below replacement value. Even with land values down due to market conditions and the willingness and inability of banks to finance construction loans, there are hard construction costs associated with building these luxury estates.
In some cases I have seen luxury homes approximately 30-40% below pure replacement cost and 50-60% less than where they were selling 2-3 years ago. This presents an amazing opportunity to take advantage of these market conditions and own that vacation dream estate at fractions on the dollar.
Another great alternative to affordability and I believe is excellent business sense is to locate a well matched 50% co-owner. In this scenario, you both can enjoy and have all of the benefits of a former 3 million dollar home for $750,000 each!
For more information and a complete list of distressed luxury homes in the Phoenix area please contact Michael Mantione.