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Speculation Home
A speculation home is one that has been built without securing a particular buyer. It is a high-risk real estate investment that assumes a buyer for the home will be found in time to maximize the return. However, building a speculative home does have some advantages for real estate investors. Despite the risk, building a speculation home can be a fairly inexpensive venture, particularly if one starts small and subsequently builds on the investment; this way, one does not have to contend with the many problems involved in flipping an older home. Speculation building allows one to start simple with a clean slate. In addition, building speculation homes allows an investor to work with anticipated and emerging trends. Whether in need of apartments, single-family homes or retirement communities, an investor can build to suit rather than trying to remodel outdated structures, and such homes also allow one to anticipate architectural design trends, build as needed and use energy-efficient resources.