Investing in pre-construction Puerta Azul by Artigas
Thomas Lloyd No Comments

Acquiring new property is a primary goal for many people. Buying property in the pre-construction phase has recently become an increasingly more popular trend.

Investing before construction allows the investor to make an initial down-payment with the expectation of receiving the property at a later determined date. Using scaled models and floor plans of the property, the buyer can envision future development. There are many factors to consider when making such a significant investment decision.

Following are a few of the advantages of investing in pre-construction property:

Low initial investment

Just like buying a home that has already been built, you can expect to make an initial down-payment of 15-20% of the total sale price. However, with a pre-construction property, you may also have the option to make that down-payment through monthly installments throughout over the time of construction; thus reducing the need to have one large lump sum all at once. Alternatively, you may have the option to hold off on making any additional monthly payments until the completed property is delivered. This will free up your finances for that duration so that you can invest in other assets. Alternatively, you can save up the payment amounts over that period and make a larger payment upon delivery to reduce the overall length of your long-term payment plan.

Pre-construction prices

The price of the property will be fixed at the time of the purchase. By the time the construction is completed, the property has already increased in overall value. Purchasing in advance means that you pay a lower rate for the same property that sells at a much higher cost five years down the road. Elements such as equity, inflation, and monetary exchange rate can increase the selling price.

Savings on maintenance and repair

When you purchase a newly constructed home, you save big on regular maintenance and repair expenses. This can be considered as overall savings in the list of expenses that are calculated when investing in real estate. As internal elements, such as plumbing, electrical wiring, and domestic appliances, will all be in mint condition. You can expect to reduce your maintenance costs dramatically. Additionally, brand new appliances typically come with long-term warranties to cover any needed repairs or replacements.

Personalize your home

Purchasing property before it is constructed gives you more choice. You may want to choose what type of decorative elements are incorporated into the interiors, or modify the floorplan, customize the kitchen, and hand-select the appliances. Perhaps you have a specific preference for the location of your home within the development. You can select a corner lot, or one close to the front, or snag the coveted lot with the ocean view. As an early investor, you have the first opportunity to take a look at the plans for the development. This includes see models, and ask all the questions you need to be able to envision and plan the ideal setting for your future home.

Capital gain

Once the construction is completed, and the property is delivered, an investor can choose to sell it at the increased market value rate, or use it as a long-term or vacation rental. You may choose to rent out just a room or two yourself or hire a property management company to oversee rental of the entire property. Either way, rental income can be generated to cover monthly mortgage payments.

The advantages we mentioned are ideal for both first-time investors or those with more experience who are looking for a valuable return on their investment.

There are many excellent options for investing in pre-construction properties. Our team of professionals at Top Mexico Master Broker can help you.