If an investor was buying the hype that this downturn will end shortly then they might roll the dice. By buying now they are locking in a discounted price and having the developer completely carry the entire mortgage payment and other holding costs until the project is completed, at which point they get back a model home that’s never been lived in and has every option that builder offered.
All it would take for this strategy to work is if the market rebounds and starts to head back up by the time the project is completed. I sure as heck wouldn’t take this gamble, but I could see how a die-hard flip addict would see this as a “bold move” that might lead to a big payday.
