So you’ve done your research and found a new development which smacks of potential. The neighborhood is perfect and everything seems just so right for your investment. Rather than simply dive in head first, you want to work out the advantages and drawbacks which come with investing in a pre-construction condo.
Thankfully, there are huge benefits to this type of investment. There are many reasons why this option is growing in popularity among a wide range of individuals at different stages of their lives. For many buyers’ specific reasons, investing in a pre-construction condo makes sense due to the potential profit to be made.
Aside from profit, what else can buyers expect from investing in a pre-construction condo? Are the drawbacks worth it?
Everyone likes to have their say. This is something which investors can avail of when buying pre-construction. The design of the unit will be executed with your instruction in mind, giving you a chance to introduce your design skills over the layout and appliances which will be in the unit.
While existing properties in sought-after areas are often more difficult to obtain, you can find yourself in a great neighborhood by investing in pre-construction. This is a highly advantageous benefit to buyers.
The value per-square-foot is better with pre-construction condos, giving you more for your investment. After all, that is what any smart investor wants.
The property itself will be easier to manage – given its age – meaning fewer expenses and fewer outgoings. As a modern property with new features, this can make investing in a pre-construction condo a great idea for renting in the future.
There are a few other things to consider when purchasing a pre-construction condo which can have an impact on your investment. For one, construction companies tend to base their prices on the value of the condo at build price. Therefore, many firms will take away one of the benefits buyers previously had – of picking up the condo at a lower price.
When it comes to purchasing the unit, you may have to wait sometime before you can physically move in. Even when you do move in, there is a chance that a number of the amenities – such as a gym or pool – may not be complete. This does depend on the development, however.
There are also fees which may or may not be applicable. Typically, occupancy fees are payable in pretty much all cases. Interim occupancy fees and final ownership will be payable at different stages. While delays and headaches can occur, only doing business with a responsible constructor should help you avoid unnecessary snags.
Investments Always Come with Pros & Cons
And they always will. Any investment will need to be thoroughly researched, as no option is going to be right for everyone. Personal circumstances will play a massive part in how valuable buying pre-construction will be, so it is important to understand this before committing to buy.
For the most part, investing in pre-construction condos continues to grow in popularity. There are many reasons why this is the case.