Investing in real estate can be stressful and there are many options to choose from. Pre-construction is one of those, but is it a good choice? What are the benefits? Let’s find out.
Pre-construction is a good way of being part of a real estate project. It allows you to access a brand new condo or apartment and you can even capitalize on some discounted early phase pricing.
What is Pre-Construction?
Pre-construction is a phase of the phase of a construction project that encompasses all of the activities that happen before the real construction begins. It is at this stage that they create a strategic development plan, define a budget and agree on deadlines.
So, how does it work?
You are probably wondering how is it possible to buy a property that you have never seen nor touched and that only exists virtually. Here’s how:
1- Choose an experienced developer
If you are going to invest your money on a pre-construction project, you need to do some research. Find out if your developer has a strong client base and a good reputation. Take your time to find a developer that makes you feel safe.
2- Read the offering plan
This is the guide you get when purchasing a pre-construction. It contains all the information regarding the project, from the selected appliances to the special risks section, which includes the rights that the developer has.
Keep in mind that the developer is only bound by law to render the contents within the offering plan, not the content of the brochure.
3- Secure phase 1 pricing
There are different pricing stages when it comes to pre-construction apartments, and the first phase is the cheapest. You can save between 5 to 10 percent off the final listing price.
4- Confirm the quality of the materials
In the offering plan, you will find all the information regarding the materials that will be used during the construction. Be meticulous and inquire about them.
Construction variations are a normal thing, so make sure you are informed about the standards for variations and get detailed contracts.
A lot of developers offer different incentives and extras in order to retain investors and usually these benefits increase the real value of the property, so make sure you have a look at your available options to see what they have to offer!