Pre-Construction Assets, What You Need To Know.

All you have to know about buying pre-construction properties.

When investing on a property, whether it is your first, second or third one it will always be a big step for you as an investor to get it. But what are really the big differences when buying a pre-constrution property or an existing one? Let me explain you!

An existing construction will be yours for whenever you want to move in. You will look for you preferred closing date and as soon as you will get your mortgage the house will be ready for you to move in. Now, your monthly payments will start running too, different from the pre-construction properties where you only have to pay for the down payment and pay out the rest after/on the closing date depending on your contract.

Older properties tend to be bigger than new ones, and you can just go and see them yourself. What you will see is what you will have when you move in but for new build properties you will only have pictures, a or a sketch of how is your property going to be.

New constructions will be riskier as they can be delayed, cancelled or postponed. The majority of the time it will take longer than what was promised by the builders to actually give you the key of your property, so you will have to prepare and be patient if you want to be the first one using your very own property.

As a lot of times delays or cancellations are expected, there are especial programs protecting you as investor. Also, if the project is cancelled, the builder will have to return a cheque to you with your deposit.

If you want to have the chance to choose your flooring, paint color, etc. you might as well go for a new build as a lot of times you will be able to have a choice with regards to this prior construction. For an existing property if you will want to change anything you will have to pay extra for it.

Pre-construction properties will offer you a better price per square feet as the risk is higher, but it generally ends up being worth it as while the property is being constructed the value starts going up right away.

My advice:

For any property you want to buy, get professionals to guide you and assist you during the process. It will make it way easier. Lawyers, mortgage agents or brokers, realtors, they all have the necessary skills and they have studied to assist you better so take advantage of them. They can give you the best options for your specific characteristics as client and you will not regret it at the end of the day.