Jack Hipolito Fernandez Responds to Promise of Land Purchases

As the American housing market undergoes a period of recovery, many investors are claiming that buying land has proven to deliver a considerable return. Real estate expert, Jack Hipolito Fernandez discusses land purchases and the future of the housing market.

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New York, New York (PRWEB) September 18, 2012

For the prospective homeowner, rising property prices may cause a reluctance to purchase real estate, however, for investors, the direction of the housing market is proving to generate a significant return on land purchases. A recent article from Newsday highlights this opportunity and notes, “from the outskirts of Las Vegas to the coast of California, stretches of undeveloped land in some of the most depressed housing markets in the United States are in high demand.” Jack Hipolito Fernandez, real estate guru, explains that while purchasing land may not make sense for everyone, the current economic promise behind these investments indicates positive growth in the future.

According to the article, top money managers, hedge funds and investment firms “are beginning to cash-in on so-called ‘shovel-ready’ residential land tracts with most of the preconstruction and zoning approvals already in place.” These profitable investments were made as developers and banks seized properties following foreclosure procedures. The article notes that these investments are returning an average of 20 percent when re-sold, although many are partnering with developers for new housing projects. While some investors made purchases a few years ago, Newsday reveals that many that are new to the market can “still buy land with development approval for as little as 30 cents on the dollar.”

Jack Hipolito Fernandez explains that while this may seem like an enticing deal, it is important that investors have a sound strategy. “Buying land simply because it is cheap does not ensure a positive return. It is also important to note that many of the companies listed in the article purchased land and held on to it for years—to realize that even though land purchases can prove profitable, one may have to have patience,” comments Jack Hipolito Fernandez.

However, Jack Hipolito Fernandez believes that the trend of land purchases is a good indicator
that the housing market will continue to recover. “While these rates may not necessarily encourage investments, it does show that there is a need for land purchases. This shows that many new developments and housing projects will show up in the next few years and add more properties to the market. Waiting for these new developments may be a considerable option for those looking to buy homes, as the current trend of supply and demand has many homeowners selling their homes at higher prices than in recent years.”

ABOUT:

Jack Hipolito Fernandez is a realtor and partner at his family’s real estate company, HF Realty. Fernandez earned his business degree from California State University. He specializes in commercial and residential property in the Los Angeles area. Jack Hipolito Fernandez is committed to helping families find their dream home and works to educate consumers on the housing market.


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