Q: What exactly is a pre-selling property?
A: Pre-selling or off-plan properties can be condominiums or commercial estates that are still undergoing construction works. They are nothing but a plot of land on which a real estate developer plan to develop a structure. On paper, some of these properties look great, but may not look exactly the same when built. Only if you choose wisely can the investment turn out to be very lucrative.
Q: What is so advantageous about pre-selling property?
A: If you pick a promising pre-selling condo, you can be amongst the first to choose the unit you prefer, benefit from attractive payment schemes such as a 20-year installment plan or discounted prices.
Q: How do I know I am choosing the right pre-selling property?
A: Think twice and spend time doing extensive research and background checks on the developer. Well-established developers have a reputation to keep and are less likely to go bankrupt.
Buying during the very first stage of development is wise and holds promises of hefty returns in the future, but the location needs to be good. Ask yourself which areas are likely to grow and become more busy or trendy. Properties in these neighborhoods will see their value increase after a while.
Inspect the plans of the condo and all information provided by the architect of the development project. Try and speak to them at length to understand how your potential home will look like.
Read the contract carefully. It might be wiser to ask lawyers go over it. Do not be afraid of asking the developer questions, such as:
- – What is included in the purchase price?
- – What other payments will be due or required on completion of the project?
If you want to add something to your unit, have it written down in the contract to avoid future disagreement. Last, make sure you have enough money for the down payment and that your monthly income can cover the installments.