...An introductory price of up to 30% less & flexible payment termsare just a few of the opportunities condo buyers can get through pre-selling properties.
What is Preselling?
Preselling or off-the-plan properties, mainly condominiums and townhouses, are units sold before the completion of the project, while they are under construction, or during their planning stages.
This practice allows real estate developers to finance the construction of their project and enables potential investors to purchase the property at a much cheaper value.
This is a wise form of investment, whether you’re looking to realize an immediate return or simply to settle. Yet, there are considerations to be made, as investing in a preselling property has its pros and cons.
1. Low introductory price and flexible payment schemes
As the demand for residential units continues to escalate, lending institutions offer more and more financing options and lower borrowing costs. And with the absence of a concrete entity, real estate developers offer preselling properties at a much lower introductory price, which is about 30 percent lesser than a unit that is no longer just a perspective. To further attract potential buyers, developers also offer discounts and promotions as well as flexible payment schemes that can go for as low as 10%, which can be payable in a short three years.
2. Having the luxury of choosing the best located unit and enjoying new features and amenities
Another benefit enjoyed by most buyers of preselling properties is being able to select their preferred unit and floor plan. Customizing and inspecting their accommodation at the end of every construction phase also applies, depending on the pre-sale contract. On top of that is the perk of living in a community that offers state-of-the-art amenities.
3. Quick ROI by the turnover date
What will be the projected demand for your property and its location in ten years? And, if you invest in a preselling property now, what will its value be by the time of its completion?
Whether you are investing for a quick return or simply buying a unit to call your own, these are questions that need to be considered before deciding to plunge into a deal.
While preselling properties can make promising investments, given that their value increases as the years pass, their location is also vital. Provincial properties, for instance, are more affordable than those in developed areas, mainly because most are not strategically located near commercial establishments, central business districts, and educational institutions.
As a buyer, it is wise to consider the neighborhood, as it is a factor that will define your ROI. Remember, your down payment today will be of higher value in five years or more. So the trick is to find a preselling property in a prime location.