Pre-construction condos are an excellent investment for many people. In fact, if you use them correctly, pre-construction condos can be an excellent investment for your future and your financial portfolio. However, investing in pre-construction condos can be quite difficult and sometimes risky if you don’t really do your own research on the condo development.
When buying pre-construction, there are important things that you need to consider before signing on the dotted line. Until you’ve thoroughly compared all the factors of given condo development, don’t sign a contract; always know what your responsibilities will be. If you have planned everything well, your decision to invest in pre-development condominiums should be wise.
To help you in this endeavour, we’d like to highlight some pitfalls that beginner buyers (and even experienced ones) commonly run into.
When you purchase a pre-construction condo, you will be required to pay fees and interest. Fees are generally just a one-time payment and include the land transfer tax and the reserve fund contribution. Interest is a recurring payment that you will have to pay each month. Make sure you consider the interest rate of your mortgage and how it has been calculated.
Many of the new condo developments have amenities that will catch your eye. These amenities can include a swimming pool, a recreation room, a gym, and more. Some people tend to focus on these shiny aspects of the condo development while not paying attention to other factors, such as the location or the surrounding area.
It is important to remember that these facilities are a luxury, not a necessity. If you have to choose between a condo with a nice pool or one that has an excellent location, you should pick the location first.
Developers show prospective buyers a room in the development as a display suite to get a feel for the place before purchasing a condo unit. However, the display suite is simply a means to an end. It is a marketing ploy to get the buyer interested in purchasing a condo in the development.
If you like a particular floor plan or see a great deal on the price, then, by all means, purchase a condo in the development. However, don’t buy it simply because you liked the display suite.
To be successful in any business, you must work with top-notch individuals. Unfortunately, this is not always the case in the property development industry. Some developers don’t have the right experience to handle the challenges that come up during the construction of a new development or the maintenance of an existing one.
When dealing with property developers, it is important that you find out what they have done in the past. You want to see great examples of their work. This will let you know whether or not they are good at what they do. If a property developer demonstrates that they are not good at what they do, you should find a different developer.
Pre-construction condo investing can be a lucrative enterprise if done correctly. There’s a lot to consider before taking the plunge into pre-construction condos. Remember that the people you work with will greatly affect your ability to make money in the world of condo development. Focus on finding the right developers and getting a great price on the condo.
Let Roger Rampuri guide you through the process of finding the right presale condo in Vancouver. We understand that this process can often be stressful, but with Roger Rampuri’s help, success will come easier! Sign up for VIP presale access today!