Advantages of Buying a Condominium During Pre-Selling Stage
"Why is it wiser to buy pre-selling condo unit?"
Here are the top 3 reasons why.
1) Price is at its lowest - The difference of a ready-for-occupancy condominium to a pre-selling condominium is very distinguishable by the numbers. If you reserve a pre-selling condominium, you are not buying a tangible unit yet. Price increase happen several times as the project approaches its completion. The usual difference of the launching price to the price after completion can soar up to 80%, almost doubling value, giving you a big yield on your investment.
2) Easier payment terms - The equity needed to be paid to the developer will be spread over the total months of construction without additional interest. If you will be reserving a unit that will be completed in year 2024, some developers don't even require to pay a spot down payment and you will have approximately 60 months to pay a certain amount. With this structure, you can easily pay off your monthly amortization and still allocate a budget to other investments.
3) Develops through time - When acquiring a property, it is best to choose the right location for your investment. Is it positioned in a commercial area inside the financial district? Are there a lot of offices? Is the demand for rental high? If the condo you acquired is within a business area where there are 8 million people coming in and out each day then a market for rental business is assured. Pre-selling projects are best partnered with a developing economy. If there are a lot of ongoing projects in the area that help the location and positioning of your condominium, then your investment is guaranteed to earn over time.
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