If you are planning to invest in real estate, buying pre-construction condos might be a feasible option to help you claim a stake in this industry. One of the biggest perks that come with owning a pre-construction condo is the chance to get lower prices than what you would have paid for an already build condo. Besides the price there is a lot that comes with investing in pre-construction condos. That said, here are some facts to know about pre-construction condos.
The Developer’s Reputation Matters
As much as getting in early comes with the benefits of owning a condo at a lower price, the developer’s reputation should never be overlooked. Well, a closer look at the developer’s reputation might give you an idea of what is in store in the future. A good reputation could be indicative of the fact that the developer will live to his promise. Otherwise, you risk ending up in court.
There Might Be Delays in Construction
Well, some home buyers get into a pre-construction deal believing that the project will not go past the expected completion dates. Well, this might be possible if you are lucky. But normally, you should be alive to the fact that delays are part of the deal. In some instances, the project might take up to a year longer than expected. This is one reason you need to pay attention to the developer’s standing in the industry.
There Might be Allowed Variances
It is always important to pay attention to construction variances. Most developers offer some allowed variances. However, some developers might opt to take maximum advantage of the allowable variances. Having lots of variance on the agreed floor plan is often seen as a rip-off. Any time you are getting into a pre-construction deal, make sure that you get a deal that offers minimal variance.
There Is Always an Outside Date
Since delays are common in pre-construction projects, the last thing any investor wishes for is having their deposit tied down for years. Luckily, pre-construction deals include an “outside date” or the latest date that the project should be complete. Negotiating an outside date essentially means that the buyer reserves the right to cancel the contract if the project is not completed by a certain date.
Ideally, buying a pre-construction condo is not as easy as buying a resale condo. But it is undoubtedly worthwhile if the discounted pricing is anything to go by.