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 several ways in which you can get into such dealings, preconstruction real estate is something to 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, Still, you need not worry, as your developer will always present you with a computer-simulated model that is as close to reality as possible and further aids your decision-making. Therefore, there is no chance 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:
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Lower Prices
Yes, you read that right. Preconstruction real estate usually has a lower initial value than the worth of finished properties. The condo developer fixes their prices, 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. Unsurprisingly, people consider buying preconstruction properties 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 allow you to break down the down payment amount and pay it in installments instead. Just remember, you must 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 long to enjoy high yields. Renting or selling them is easier as they are newly constructed units free of damage, scratches, or mess left by previous owners. Moreover, everything is clean and organized 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.
Customization
The best thing about investing in a preconstruction unit is that you can control its design process from scratch. You get to personalize the condo’s upgrades and finishes to your liking and save thousands of dollars on its renovations later. And there is a sense of complete satisfaction that everything has been picked according to your taste and preferences.
