Investing in Pre-construction
In many ways, the pre-construction investments in 2015 possess the same characteristic as before the crash of the real estate market. Some parameters of how to invest in pre-construction properties might have changed but as far as the investors are concerned the foundation of the investment and the main objective remains the same. The days of the crazy, overnight price increases in the sale of the pre- construction condos might be over, but the opportunities to enjoy a good return on investment are still out there. While the seasoned pre-construction buyers need to be more vigilant in choosing the right project, the newcomers on the other hands have to do their homework by either joining a REIT with good track records or acquiring the help of a real estate professional specializing in all aspects of the pre-construction deals. In order to help both types of investors, we will attempt to share some of our experiences that we have gained with the handling of over half a billion dollars in pre-construction contracts and hope to shed some light on the risks and rewards of the investing in pre-construction projects in 2015.
First, the rules pertaining the purchase of a typical resale property would not necessarily apply to the acquisition of a pre-construction unit. Unlike a resale condo or home buyer, the main purpose for a preconstruction investor is to gain profit rather than to seek a residence, a homestead and a roof over the head. When residing in a property is the primary focus, the home buyer would look more to the commute between the residence and his work, the schooling for the children, the space, the number of the rooms and many other factors that will make them choose one home over the others. On the other hand, the preconstruction home buyer is seeking the highest return on the investment regardless of the location, size, number of the rooms or any other goodies that a typical homeowner might be interested in.
Please follow up with more upcoming articles in explaining the real difference between the resale properties or more specifically resale condominiums and pre-construction properties or pre-construction condos as well as tips on choosing the right preconstruction opportunities and more.