What is a pre-sale real estate investment?
If you are looking to invest in real estate in Puerto Vallarta or the Banderas Bay, you should consider pre-sale or pre-construction. This is an early purchase of a condo that is in a development currently under construction. As a buyer, you pay an up-front deposit to secure your real estate purchase and then pay for the balance of the sale price when the construction is complete and the investment is ready for delivery. Depending on the stage of construction, the developer can offer pre-sale price discounts.
Here are the 5 benefits of investing in pre-sale condos:
1. Low up front cost to reserve investment
You often can reserve and secure the purchase of a pre-sale condo for a deposit of 10% to 30% of the total sales price. Each development has its own pre-sale deposit structure and percentage required to reserve the investment, giving you additional time to prepare for the next payment or the full balance at completion of construction.
2. Build equity from day ONE
Because the price of your condo is locked in at the time of contract signing and prior to completion, you have the opportunity to profit from a strong Puerto Vallarta real estate market. Consider the fact your new condos value may likely increase during the construction process. The return on investment (ROI) is why pre-sale is so popular with investors.
3. A brand new condo to call home
Purchasing a pre-sale condo means you become the first owner of a brand new home. You will not have to deal with maintenance issues that a previous owner may not have addressed.
4. Low hassle investment
Pre-sale properties are subject to the same real estate market trends as existing properties. The difference between holding a pre-sale property and an existing property is the fact that a real estate investor can benefit financially from the potential capital appreciation on the pre-sale unit during construction without the maintenance costs and HOA fees an existing property would incur, during the same time.
5. Increase your return on investment (ROI) with vacation rentals
In the right location, a new condo with new, attractive amenities is immediately marketable as a vacation rental. It is easier to find renters who are ready to pay top dollar for the convenience and amenities that a new construction will bring. With pre-sale, you have a turn-key real estate investment, that is ready to maximize your return on investment (ROI).
Consider pre-sale as a real estate option as there are many strong benefits to this type of purchase when working with a good broker. With us, expect the best representation for real estate services in Puerto Vallarta and the Banderas Bay. We protect your best interests in real estate so you can make smart investments. Contact us to learn more about pre-sale developments and more.
Edgardo Guel | President & Broker
edgardo@casaluxerealestate.com
Mobile +52 322 227 4796