What about purchasing just the land!

Guaranteed Buy Back Scheme for the land!

Purchase for $125,000 now, developer will buy back at $150,000 after 24 months! But only if you want that option, you can always keep it! Its yours, as you have paid for it, but here's the unique deal if you want it! Waverley Groves, the new development by Alpha InterContinental adjacent to the fast developing Providence area of Orlando in Florida, is now released for sale and should appeal to investors who wish to buy off plan.

With traditional off plan purchases the investor secures his home with a deposit and then the buyer and vendor enter into a contract for the supply of a specific house on a given lot. The buyer is tied in – often for several years -until the house is built as the contract cannot be assigned to another individual. This has all changed at Waverley Groves – the transaction has effectively been split in two so that the off plan investor can remain in control and sell his investment on at any time of his choosing.

The purchaser buys his lot and contracts to have a house built on the land within a set time limit, and he contracts with the developer to have a house built on his land at this time at a set per square foot price. The house type is selected from a range of house types ranging from 2,000 sq ft 4 bed home, to 3,500 sq ft estate type homes. The standard lot of 50x110ft is available for $125,000 and at current prices, a 2,000 sq ft home would cost $300,000 - giving a total cost of $425,000, which compares well with neighboring developments.

The beauty of this arrangement however, is that the investor can sell his land on at any time, so releasing equity when the land has appreciated. In addition, for the first twenty lots the developer is offering a guaranteed buy back scheme. The off plan investor buys a lot at $125,000 each, and after a set investment period of 24 months, the developer will buy the lot back at a guaranteed price of $150,000 – returning a guaranteed 10% per year.

If the lot has gained more than this on the open market, then the lot can be sold on. The only limit on the number of lots that an individual can buy is the twenty lots in this initial release.

It is anticipated that building will begin in late 2008, early 2009 and there will be an 18 month window for completion of the home after the site development begins. Plots can be secured with a 50% deposit ($62,500 deposit for $125,000 lot) which is effectively 15% of the total price of $425,000. Lots will be allocated so that the first buyers have the first choices, and the deal for the land will be concluded when Polk County agrees the final site plan – at this stage the $62,500 balance is required.

A few larger 75ft lots are available at $175,000 which will accommodate very large estate style homes, and several smaller 35ft lots will also be available. The table below shows listed in square footage the cost of building owning the land and total cost, at a present $150 per square foot. Obviously this price can increase inline with general construction costs, but is current for 2006.  

  Sq.ft  $/Sq.ft    Build Cost  Land Cost  Total Cost

1750     $150     $262,500  $125,000    $387,500

2000     $150     $300,000  $125,000    $425,000

2250     $150     $337,500  $125,000    $462,500

2500     $150     $375,000  $125,000    $500,000

2750     $150     $412,500  $125,000    $537,500

3000     $150     $450,000  $125,000    $575,000

3250     $150     $487,500  $125,000    $612,500