Richmond's Million Dollar Homes
The reason why large-size lots are popular is because new homes built on these lots are in demand and they are selling for $1.35 to $2.00 million dollars. There are profit to be made by new home builders who are building spec homes for sale. You can view the million dollar Richmond homes here.
The profit margin for purchase-and-build is normally at 20% to 25%. But, for builders who are building on properties they bought 1 to 3 years ago, they can make a lot more money building and selling these new homes. The property appreciation already assured the home builders getting as much as $250,000 (a large-lot property sold 3 years ago at just over $400,000 is now priced at around $650,000 to $700,000).
These houses are built to the maximum allowable size by the local municipality zoning by-laws. Generally, such houses are spacious with over 3,500 sq ft living area, well-designed and luxuriously built with premium quality materials and fixtures. New immigrants and successful rich business owners from overseas have the money and appetite for multi-million dollar homes in Richmond. Compared with buyers who desire to own their super-luxurious homes in Vancouver Westside and prestigious West Vancouver, they may have to spend $5.0 to $10.0 million for theiir homes .
Appreciation Potential
Over the long term, properties in Richmond with large lots are expected to remain the most desirable for home owners and investors. Over the long term, the scarcity of such properties will reinforce the demand and price appreciation of these properties. Click here for the latest news on Richmond's real estate market.
If you are looking for older detached houses on large lots for long term investment, call James Wong at 604-721-4817. Or, click on this link to send James an email.
