Investing in residential real estate has become quite popular. It is possibly the only market that witnesses high and constant returns on income year after year. Though there are a number of ways in which you can get into such dealings, preconstruction real estate is something to seriously consider for fast and better earnings.
Presale or preconstruction real estate is a property that is yet to be built or completed and is sold by the developer to the buyer well ahead of time; thus, giving the buyer the rights to the completed property and benefits to the increased prices without undergoing the trouble of paying a mortgage, property taxes, maintenance fees, etc.
Of course, it gets difficult to reckon the final looks of the condo just by staring at the blueprint but you need not worry as your developer will always present you a computer-simulated model that is as close to the reality as possible and further aid in your decision making. Therefore, there are no chances that you would be making a blind investment.
Preconstruction condominiums have become one of the hottest pieces today. Keep reading to know the various advantages you get to avail out of them:
- Lower Prices
Yes, you read that right. Preconstruction real estate has usually a lower initial value in comparison to the worth of finished properties. Their prices are fixed by the condo developer and they are not even subject to the fluctuations of the real estate market and you get to buy a condo in the future at today’s price. It comes as no surprise why people consider buying preconstruction properties as an excellent investment strategy.
- Lesser Down Payments
Generally, when buying a resale unit, you have to pay a whopping 20% down payment to save your spending on CHMC Mortgage Insurance. This can pose a big challenge for buyers with fewer finances. However, while purchasing a preconstruction unit, you can convince the builder to give you the opportunity of breaking down the down payment amount and paying it in instalments instead. Just remember, you will be required to pay the full and final amount if you wish to get the keys.
- Quick Returns
Acquiring preconstruction condos in prime locations means you don’t have to wait for long to enjoy high yields. Renting or selling them is easier as they are newly constructed units and free of damage, scratches, or mess left by previous owners. Moreover, everything is in a clean and organized condition for the owners when they move in. So, by buying a preconstruction condo, you are at least ensuring a solid and decent return on your investment.
The best thing about investing in a preconstruction unit is that you get to control its design process right from scratch. You get to personalize the condo’s upgrades and finishes to your liking and save thousands of dollars on its renovations later down the road. And, at the end of the day, there is a sense of complete satisfaction that everything has been picked according to your taste and preferences.