It is very common to find pre-sale houses and apartments in the real estate market, a situation that the construction company offers us as a great opportunity to invest. However, it also carries some risks that you should take into account before deciding. So this time we want to talk to you about some of the advantages and disadvantages of buying pre-sale properties.
The pros of buying a house in pre-sale
- The most attractive advantage is undoubtedly the price: when buying in advance, you will usually get a much lower price than what the property will cost once it is finished. Depending on the construction phase, they can offer you a considerable discount. This undoubtedly represents a great opportunity because you will be able to get your next home at a lower price than what you had in mind.
- During the pre-sale phase, some construction companies also offer you the option of paying the down payment in monthly installments, which is excellent news if you do not yet have the necessary capital to pay it, because as you know, when banks offer you a mortgage loan you never It is for 100% of the value of the property, but you must make a direct payment of approximately 20%.
- Another of the pros of buying in advance is that you have more freedom to choose in which area of the subdivision or building you want to buy. You will have the opportunity to choose a better view or preferential access to the recreation areas. By being one of the first to buy, you will have more possibilities to choose the location that best suits your tastes and needs.
- One aspect to consider is that when the property is under construction you will have the opportunity to decide if you prefer your house to have certain finishes or even a different distribution that suits your needs. Everything is a matter of knowing how to negotiate with the company.
- And to close this list, another great advantage of buying in advance is that your investment will have a higher return. As we mentioned at the beginning of this list, prices will go up once the subdivision is complete, so your house will increase in value and if you choose to sell it, you will achieve higher profits.
The cons of buying a house on pre-sale
- The main disadvantage is that when buying in advance you will have to wait a significant time before you can open your new home. Real estate developments under construction usually have calendars and when trying to convince you to make an early purchase, they may promise you a delivery date that is often difficult to meet. Construction delays are not uncommon, so if you go with this option, you should be prepared with tons of patience.
- Another drawback is that in the pre-sale you are not sure exactly what you are buying. Of course, there are detailed models that the seller will show you to convince you, but you don’t know how it will look in reality, for example, he can promise you first-class finishes, but deliver something different. That is why it is important that you review the contract well and that it specifies exactly what they are selling, to avoid unpleasant surprises when you finally receive your new home.
- An issue that is not minor and you should verify before signing any agreement is the reputation of the developer. Pre-sale developments can easily turn into a nightmare if you’re not sure who you’re dealing with. For this reason, it is essential that you investigate the company and its representatives, before putting your assets in a subdivision project.