How Pre-Constrcution Investments in Real Estate Industry Indicate?

It does not matter if it is a housing estate or a new condo building going up in your area, you may have heard about the pre-construction purchasing opportunities along with pre-construction sales. However, before you consider opting for any of it, it is imperative for you to know what it actually means and why you should line up for viewings?


To find the answers to this question, keep reading.

What You Should Know About Pre-construction Purchase?

For pre-sale of the units, to generate capital and fund the rest of the project, the developers and builders generally pre-sell several  units at discounted rates – usually 10 – 15 percent lower compared to the what they intend to sell once completed.

Pre-construction Investment – Advantages to Consider

It does not matter if you intend to purchase the house as your primary residence or something related to investment, this approach will enable you to acquire the property for less than the eventual resale value.

Selling for Small Profits?

Most of the builders have restrictions in place that will prevent you from selling the pre-purchased properties till the time all or some of the units have been sold. Moreover, some builders will put a timeline restriction on sales that is going to prevent the buyers from selling their properties at less than the builder’s price and undercutting them.

Are There Any Risks?

Of course, for instance, if the real estate market is having a downward trend and as a result the builder decides to lower down the prices of the property as they complete, the market value of your unit will also decrease.

The fact you should be aware of in this regard is that the development projects and buildings usually are not completed on time, therefore the prospective owners should not bank on a house or unit that is estimated to be completed in 15 months just because the developer has said so.

Do You Need To Pay Right Away?

Most of the pre-sales would require you to make a down payment or make initial deposits on the house and then you do not have to pay until the house is completed. In the mean time, the payment you have made will be locked into the property. Nevertheless, you will have enough time to save more and then later increase your down payment whereas simultaneously gaining equity in the possessions as it’s built.

To know more in this regard, you can check out  more with Art Shoppe Condos at Yonge & Eglinton in Toronto or Art Shoppe Condos to ensure that you are spending your money with a legitimate business.


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