In today's real estate market, prices have fallen and many people are trying to figure out how to get the homes they want. Many of these individuals are trying to get by with lower incomes and higher costs on household goods. Because of tighter budgets, some real estate developers are finding value in selling units known as "white boxes." A "white box" is a type of condo that has no finishes and is basically a big empty white space. Some popular real estate markets like Las Vegas and other development havens have leaned toward this approach to bring more buyers into the fold.
Why They're Popular
White boxes are becoming more popular because they allow people who would ordinarily not be able to get into a certain area to find a place to live. Many of these white boxes are situated in popular neighborhoods or areas that young professionals want to put down roots in. With these white boxes, buyers can often find a space to live that is much cheaper than buying a finished unit. For example, if you would ordinarily have to pay $200,000 for a condo in the area, you might be able to get a white box for $150,000 or less. This gives you some flexibility in your real estate accommodations and allows you to get into the location that you really want to be in.
White boxes are becoming more popular because they allow people who would ordinarily not be able to get into a certain area to find a place to live. Many of these white boxes are situated in popular neighborhoods or areas that young professionals want to put down roots in. With these white boxes, buyers can often find a space to live that is much cheaper than buying a finished unit. For example, if you would ordinarily have to pay $200,000 for a condo in the area, you might be able to get a white box for $150,000 or less. This gives you some flexibility in your real estate accommodations and allows you to get into the location that you really want to be in.
Finishing Them Cheaper
One of the reasons that these units are popular is because many buyers think that they can finish them out cheaper than what the developer can. For instance, someone may have a connection with a family member or friend who works at a big box store. This individual can get many of the appliances and finishes that he needs for cost instead of paying what the developer would charge.
One of the reasons that these units are popular is because many buyers think that they can finish them out cheaper than what the developer can. For instance, someone may have a connection with a family member or friend who works at a big box store. This individual can get many of the appliances and finishes that he needs for cost instead of paying what the developer would charge.
Some people think that they can handle all of the finishing touches by themselves. Someone with experience in construction, plumbing or let you work may be able to come in and do the work by himself to avoid paying someone else to do it. If the developer does that, he'll pay a contractor to do the work and then put a markup on top of that cost. As an individual, you can do that work without having to pay anyone's wages or pay a markup.
Spreading Out the Work
In some cases, people buy these units with the intention of finishing them out over a longer period of time. If the individual is on a limited budget and can only afford to buy the unit at the time, there's no hurry to finish everything up. As soon as the unit has plumbing and some other items, it can be lived in. While it may not be ideal, it gives the owner some time to do the work in his free time instead of having to do everything all at once. While it may be a little bit inconvenient at the time, it can save the homeowner quite a bit of money over the long-term.
In some cases, people buy these units with the intention of finishing them out over a longer period of time. If the individual is on a limited budget and can only afford to buy the unit at the time, there's no hurry to finish everything up. As soon as the unit has plumbing and some other items, it can be lived in. While it may not be ideal, it gives the owner some time to do the work in his free time instead of having to do everything all at once. While it may be a little bit inconvenient at the time, it can save the homeowner quite a bit of money over the long-term.
More Control
Another advantage of using the white box method is that it gives the homeowner a little bit more control over the finishes of the condo. When you buy a regular condo from a developer, you basically have to take whatever they decided to put into the unit. This could mean that you have to buy granite counter tops, walnut cabinets and wood flooring. If you buy a white box, you can choose the finishes that you want. This makes it possible for you to get cheaper finishes if you're on a tight budget. In some cases, you may want to go in the other direction and get even nicer finishes than what the developer had in mind. The appeal of these units is that you're basically working with a blank canvas and you can do whatever you want within reason.
Another advantage of using the white box method is that it gives the homeowner a little bit more control over the finishes of the condo. When you buy a regular condo from a developer, you basically have to take whatever they decided to put into the unit. This could mean that you have to buy granite counter tops, walnut cabinets and wood flooring. If you buy a white box, you can choose the finishes that you want. This makes it possible for you to get cheaper finishes if you're on a tight budget. In some cases, you may want to go in the other direction and get even nicer finishes than what the developer had in mind. The appeal of these units is that you're basically working with a blank canvas and you can do whatever you want within reason.
Considerations
Although buying a white box can be appealing, it is definitely not for everyone. Some people go into this type of deal with the intention of doing a lot of the work themselves and then never get around to doing it. Before getting involved with a white box, you need to examine your intentions and figure out if you really plan on finishing everything in time. You also need to have a plan to come up with the money for the finishes that you want in the unit. Otherwise, you might end up with a white box and no way to pay for the renovations that you need.
Although buying a white box can be appealing, it is definitely not for everyone. Some people go into this type of deal with the intention of doing a lot of the work themselves and then never get around to doing it. Before getting involved with a white box, you need to examine your intentions and figure out if you really plan on finishing everything in time. You also need to have a plan to come up with the money for the finishes that you want in the unit. Otherwise, you might end up with a white box and no way to pay for the renovations that you need.