Acquiring a pre-sale condo is an opportunity to make a smarter real estate investment.
However, there are many factors that cast doubts on investors interested in acquire pre-sale properties, and therefore, preventing them from making a successful investment.
As you know, regardless of the type of investment you make - whether it is stock investing or real estate investing-, one of the things that most concern investors is investment risk.
This concern is quite common. All investments involve some degree of risk, but a smart one implies looking for the best opportunity with the least probability of risk for you and your money.
That is why real estate is the favorite option for many people, either to increase their assets or to get better results than an investment account. Real estate is considered one of the 5 safest investments you can make in your life, thanks to the fact that the properties - lots, condos or houses - are tangible assets that increase in value over time, unlike other assets such as cars, which lose value from the moment they leave the agency.
One of the advantages of real estate investment is the increase in capital gain. If you are wondering what is capital gain and how to calculate it, you need to know that location is the most important factor to increase property value over time.
Surely you know wastelands that, for example, increased in value because they are located in privileged areas. And this is another important aspect that you need to consider: real estate investment is a long-term investment. While for many people this is quite attractive, for others it can be very frustrating since they could believe that their investment is not working.
When talking about real estate investment, it is normal for us to hear terms such as return on investment - also known as ROI - and returns. These terms, however, do not apply to investments in the same way.
Read below the reasons to purchase pre-sale condos, so you can recognize the perfect investment opportunity.
There are many ways to invest in real estate. Buying a house is the most common, especially doing it in places like Merida, where acquisitions are usually to move in.
As mentioned before, the most important thing is acquiring a property according to your investor needs: A person who is thinking about buying a family home will be more interested in residential developments near schools, hospitals and entertainment options for all the family, and will hardly be interested in a condo in a tourist area.
In recent years, people are more interested in acquiring condos than houses. High-rise buildings in cities like Merida are becoming popular among Mexican and foreign investors because of the growth of the city.
Another advantage of acquiring a condo is that they are located in exclusive areas, so people who want to be live near their jobs or want to live in the heart of the city are considering more to invest in condos.
As we mentioned earlier, acquiring a pre-sale condo is an opportunity to make a smart investment. Since the key factor in real estate investment is the location, before investing, it is important to find the best located property with the highest probability of growth.
Although property value in the best areas of a city is higher due to the capital gain, pre-sale properties allow investors to acquire houses, lots or condos at low prices without affecting property value over time.
Here are some reasons why you should also purchase condos.
When talking about pre-sale, it can mean two things:
Many people are afraid of acquiring pre-sale homes, since the delivery time may be longer and they cannot see the finished property before buying it. However, this should not generate investment fear. Real estate developers always have sample homes so potential buyers can see the finished property.
Without a doubt, the most important benefit of acquiring a pre-sale home is the price. Thanks to the fact that the developments are not finished, you can get price discounts on the property.
Price discounts will not affect your investment, on the contrary, property value will increase over time.
That is why more and more people are interested in buying pre-sale real estate: it is an opportunity to get luxury condos at fair prices and high profit margins.
One of the advantages of pre-sales home is that you ask the developer to make property modifications. Of course, not all builders or developers will agree, however, it is easier to make certain modifications at this stage.
Some people decide to make small modifications such as the color of the floor or the doors, but if you are thinking of something bigger such as expanding rooms or turning one into a studio, it is very important to approach the developer to see if you can reach an agreement and take the opportunity to make your modifications at once.
There are those who say that pre-sales are a nightmare because the delivery is not usually immediate, but this does not have to be something negative. Especially if you are moving from another city.
Acquiring a pre-sale condo is an ideal opportunity to gradually make your moving process, whether you are buying your furniture or planning the logistics of how you are going to move your things and even leave your work, this time where they are still building is ideal to plan with more determination, while you can acquire a good that will not be devalued and instead will increase its value.
As mentioned earlier, property value increases over time. So there is no hurry to acquire a property if you are not thinking about moving into it immediately. In fact, this passage of time will be beneficial to you.
If you buy a pre-sale condo, it is very likely that during delivery time, property value will have increased but you will not have to pay more money. Some people decide to buy condos to resell them after they increase in value, and that is a long term strategy to increase your money and protect it from inflation because unlike a savings account, inflation can be beneficial to a property.
In addition, it is important to know that real estate prices are in US dollars, so in the hypothetical case that the Mexican peso is devalued, your money will be insured.
As mention above, the passage of time will make property value increase and therefore, your investment will have served its purpose. There are investors who bought residential lots in areas that seemed to be low value but today are considered areas with the highest value in the city and their properties are worth more than what they paid.
If you are looking to invest in a pre-sale development it is very important that you analyze the property location. Condos near the beach, or located in very important tourist areas, such as La Quinta Avenida in Playa del Carmen, have the security of a guaranteed capital gain.
Some tips to identify the best option to make your investment are:
We mentioned it many times: if investment fear is stopping you, consider that real estate is a long-term investment. Also, there are cases where developments or condos are in pre-sale because some adjustments that must be made. In those cases, you should take the opportunity to acquire a condo in an area with high capital gain that will also increase in value once it is delivered.
Location and capital gain are factors related to each other that are also important to real estate. However, acquiring a pre-sale home is something you should consider from now on.
Do you want to learn more? Do not miss these 5 reasons to buy a pre-sale home.