Step By Step Instructions To Invest In The Future Condos
Investing in a future property is kind of a long term investment. It’s certainly not the ideal option for investors looking to yield an immediate profit. But there’s no doubt about the fact that it is one of the most solid ways to grow your money. The value of your Pre-Construction property is set on a rising scale ever since the very first day you purchase your unit and only continues to grow till the day you sell the property. Investing in pre-construction properties is a great way of future investment which ensures passive income for the investor. You might have a certain dilemma – future Condos are a kind of real estate investment and real estate is pretty risky right? Well, with pre-construction condo properties, you can have complete control. Yes, you heard us right! The real estate market tends to go up and down but that doesn’t affect you. This is why we said that you’d be in control. If the market is sulking then you can choose to hold on to your property and sell it when the market is at its peak. Thus you can earn a high return on investment.
- Fix your location
The location makes a huge difference when it comes to real estate – especially in the case of future properties. Even if you choose a location that is only developing but rapidly, it doesn’t make much of a difference as the location would probably be an eccentric hub by the time your property gets completed. Smaller cities tend to grow denser in population over time and thus the condo sales in that particular area increases along with it. Smaller cities usually have more land available for developments and condominium builders are likely to choose a plot in a developing city, following the above-stated strategy so that they can cut some cost during the production stage. So investing in one such property wouldn’t be a mistake if you’re putting your trust in a reputable and authentic builder.
- Choosing a builder
Once you’ve picked out your preferred location, move on to the next and equally important step of finding a builder. The foremost thing to keep in mind is that you are investing in a future property and hence there are a lot of risks associated with the same. Putting your money in something that hasn’t been built yet is a pretty risky business. So you have to find a reputable builder to minimize the risks. Before choosing a builder, evaluate their previous projects. Do complete research – their finesse in building properties, previous projects, promptness in delivering the property on the closing date, feedback on the previous project, etc.
- Calculate your expenses
When buying a future property, you should be geared up to deal with all the costs associated with the same. In the case of a pre-construction condo, you have to pay the carrying costs like interim occupancy fees, down payment, and other related costs.
- Know about the perks
There are a few advantages associated strictly with future properties. The cooling-off period granted to property investors is one of those categories. This allows an investor 10 days to evaluate and reevaluate his decision of buying the property. The 10 days period starts from the day of signing the contract and the investor is given the full freedom to change his mind within these 10 days. You can consult with a lawyer and think it through before making the final call. Even if you choose to back off from the deal within these 10 days, you won’t have to worry about letting a single penny go to waste.