01/23/2023
5 Benefits of Investing in Preconstruction Real Estate:
☑️Extended Deposit Structure:
When purchasing a new build home or condo, the deposits (between 15%- 20%) are typically spread out. This can extend over 18- to 24-months. Specifically, not having to put down 20% upfront allows investors and end users to save up. Or, in some cases, utilize a line of credit to even further spread out the payment deposits.
☑️No Bidding Wars:
Unlike resale homes, there are no bidding wars when purchasing a preconstruction property. Developers release a price list and buyers have the option to make a purchase based on their budget and not overpay due to competing offers.
☑️Option to Customize Finishes:
Purchasing a pre-construction property means you get the added benefit of being able to customize the property to suit your needs. Choosing features like flooring, cabinetry, lighting, plumbing, and fixtures can be extremely helpful for investors hoping to keep their costs down while making the home as durable and appealing to future tenants as possible.
☑️Low Maintenance and Repairs:
Unlike resale homes, new construction properties come with a builder’s warranty which is required by law. These warranties typically cover materials and workmanship as well as any systems work (electrical, plumbing, heating and air conditioning, etc.) for up to two years.
☑️Property Appreciation:
One of the top reasons to invest in real estate is appreciating property values. In this regard, pre construction homes are great since they behave very similar to the futures market. Pre construction home buyers purchase property at a time when the locality isn’t as developed, gaining an advantage by buying at a relatively lower price and witnessing a dramatic increase in the value of the property over time.
Paul Saini
Realtor
Intercity Realty Inc., Brokerage
📞 416-508-5256
🌐 www.paulsainirealtor.com
📧 [email protected]
