Pre Construction Condo Investment is among the safest and long-term investor ideas you can ever think of. Discover these secrets and become a real estate guru.
There are a variety of gains attached to buying a pre construction condo; you may talk of acquiring a property with a low amount of about 5% down payment, in some cases the property value might appreciate before completion of the project among other benefits.
Pre Construction Condo Investment
…is subdivided into different categories…
- primary residential/luxury
- second home markets/investment
Here are the best tips on how to invest in Preconstruction Real Estate.
1. Assess the market area you’d love to invest
This aspect should be guided by your objectives of investment. The main determinants to look at are your personal goals, needs, what you can afford and what real estate financing options are available for purchase. All these should favor your desired standards.
2. Seek help from a real estate agent
There are professionals dealing with Investment/Second homes and luxury Preconstruction Real Estate investment. When in need of either real estate professional, these experts will help you to evaluate the opportunities currently available that you’d have probably not seen when alone. They might further give you advice on what deal is better.
3. Find Preconstruction Builders
Be sure to visit or contact pre construction builders to select the most appropriate project. You should work together to ensure that the selected choice can suit both parties. Most importantly, ensure the project meets all your needs.
4. Select your project
This is the most critical segment. This is the reservation phase and it ranges between the first 3 to 6 months. It is also the pre-selling phase and the buyer is required to sign a contract.
5. Review and complete the purchase contract
A sales contract has to be signed. The requirements involve a refundable deposit from the buyer; in most cases it’s tabulated at 10% of the buying price. The contract is highly flexible in that, the buyer can decide to cancel the deal or not. However, it cannot be terminated when the payment exceeds 70% of the acquisition price.
Each new Pre Construction Condo Investment project is different and the terms for getting a refund on your deposit may be different…be sure to ask questions about this.
6. Review the documents with your accountant or lawyer
The buyer is given approximately 15 days to review his documents after closing the deal. Within that period, he/she may wish to terminate the deal or go on with it. Your lawyer or accountant will be of help at ensuring the set measures as per the agreed agreements have been met. When all is confirmed to be right, you’d be free to move to the next step.
7. Close the Contract
The buyer will be required to give 20% of the buying price amount. This will be less the paid deposit and it should be 18-24 months after submitting his/her hard contract. The period however depends on a country’s Preconstruction Real Estate Policies.
8. Close the deal
At this stage, the buyer will be offered a Certificate of Occupancy. By then the project would have been completed or about to be finished. The investor will be free to examine the asset and if he/she is satisfied, the deal would be set for closure. The balance would also be agreed upon in terms of completion.
Real Estate investing requires smart strategies to do it right. In the question of how to do Pre Construction Condo Investment the right way, the above guidelines and Metropica Homes For Sale Florida are a good place to start.
Comments or Questions
If you have any comments or questions about buying a pre construction condo or about other Florida homes for sale, please feel free to contact me today…
I’m always available to help you and your family experience the joys of homeownership. Have a great week!
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P.S. Here’s more general info about pre-construction.