Things you should consider before buying pre-con condos!
Pre con condos are highly preferred by first-time buyers and seasoned investors. However, there are still risks connected with pre-con condos which you should remain careful while investing. If you are buying through an agent, he/she may clarify and assist you in avoiding unnecessary stress, unreasonable contract terms, and hidden costs. They will guide you from developments and help you in saving about 10% or more. Before shortlisting a pre-con condo, we suggest you evaluate the factors to consider and more here.
Pre-construction condos are best for second homes or investment purposes:
Some people purchase pre-con condos as their first residence. But it is best suited as investments or second homes. Are you purchasing a house for the first time? If you are interested in purchase a pre-construction condo, you have to purchase from a leading builder. When you buy a pre-construction unit, you get the right to buy once it is completely constructed. The builder can make certain changes to the condo and building. If needed, the builder can cancel or stop the project for any reason. If the builder stops constructing the project, it can directly affect the first time buyers as they would have invested all their savings for their future house.
Flexible deposit structure:
The deposit structure and plan vary from one project to another. However, the general deposit structure for pre-construction condos would be in the following manner.
- 5% while signing the agreement
- 5% within the next thirty days
- 5% of building price within sixty to ninety days
- The remaining 5% at the time of occupancy or after 365 days
The above plan is very common and usually followed by most condo developers. Some developers share a unique plan that is profitable to the buyers.
The developer would launch the project in phases. If the company has sold the first launch, they will share as family and friends launch. The forthcoming sales would be according to the sales volumes of the preconstruction agent. If the agent sells more volume, they get better accessibility. Most pre-construction condo agents share the property through their affiliate network and get better access.
Delays are unavoidable:
Several pre-construction projects get delayed due to one or several reasons. The developers may plan a closing date but due to certain formalities and building plans, they may pull the closing date either early or late. The developers usually delay the project when the project is out of their control. At times, delays may happen due to strikes. It is best to keep checking with the developer regarding the closing date.
The site plan, amenities, and unit layout have chances to change. When you notice the marketing material, the builder would have added the best plan. The final project may slightly change with the acceptance of the buyer. One of the common changes that may happen is structural change. Some of the disappointing change include gyms, spas, pools, etc. They may remove amenities or features to make the condos better viable.