Sometimes referred to as off-plan properties, here are some of the benefits of buying authentic estate during its pre-selling stage.
Whether you are an aspiring home buyer who is actively probing for properties online or actively doing the rounds attending open houses, you have probably encountered the word pre-selling at some point. What does pre-selling mean? And, what are the advantages?
What does pre-selling involve?
Off-the-plan or Pre-Selling Properties are properties which are being sold by an authentic estate developer in advance, afore completion. While it may seem marginally unconventional to purchase a property that does not yet subsist, presold properties can afford homebuyers many advantages. Such properties often come at a discounted price and those who purchase them get the first pick of the units.
Pre-selling properties are customarily more frugal
In the absence of the physical unit, pre-selling properties are customarily sold at a cut-rate price. They are often 30–50% less extravagant than a culminated unit. Aside from affordable preclusive prices, many property developers offer flexible payment schemes and even a discounted down-payment price for their pre-selling projects. Developers withal frequently offer in-house financing in the event that the homebuyer fails to qualify for a bank loan.
They give buyers the best unit options
When buying pre-selling properties, buyers have the integrated advantage of being able to optate their ideal lot or unit location at an early phase, customarily during the project launching stage. This makes it more facile to cull a property which you ken will have one of the highest resale values (e.g. predicated on the view, the aspect, the terrain, and the proximity to amenities). When buying a condominium unit during the project’s pre-selling stage, the buyer is given the opportunity to pick the best unit, such as those facing the best direction and located on the impeccable floor, or even one of the most luxurious units that would mundanely be reserved.
Once consummated, this kind of property can provide a steady source of income
Once the property is consummately done and is yare for occupancy, the buyer can opt to rent it out, and through this, the buyer can earn a steady cash flow. If buying a condo property to have it rented out after completion, it makes sense to buy a pre-selling one, especially during the project’s earliest stage, as it affords buyers the first pick of units. The most captivating units will be the most facile to let.
They are an excellent investment option
The value of authentic estate appreciates over time. At the time of completion, the value of a pre-selling condo or house will already have incremented considerably. The buyer may even make a profit by selling the culminated condo/house immediately in the secondary market. If the owner opts to sell later down the line, it is likely that they will get an impressive return on their investment since now is a lucrative time to invest in authentic estate.
Some tips afore buying
As an astute homebuyer, you must be vigilant and ken that any offer which comes with great advantages withal carries some jeopardizes. One of the most sizably voluminous drawbacks of buying a pre-selling property is that the developer you signed up with may back out of the contract. Should this transpire, the developer may not be able to distribute the unit at all. Only purchase pre-selling property from reputable authentic estate developers. Check that the developer in question has a good track record when it comes to selling high-quality properties on time.