Buy Pre Construction Condos - Is Buying Before Final Closing Better Than Buying After?
Thinking of investing in pre construction condos? The good news is this - condominiums make for an extremely sound investment decision whether for investment or merely to live in. But just owning a condo doesn't make you any cash, and in fact, quite the opposite - it can quickly become a financial liability on your part. This is because a unit that was built comes with all kinds of unseen costs. Things like water pressure bills, HVAC systems, property taxes, and more must be paid before you could even start living in your condo.
Also, there's the issue of having to pay for the eventual final closing costs. These can run anywhere from two hundred seventy five dollars to six hundred dollars, depending on the particular condo, the builder, and the builder's own rate of return on the developer's investment on the piece of real estate. In addition, there are usually some type of developer fees or government fees to be paid at the time of closing. These are not the only fees, but they are the ones most people familiar with, since most pre construction developments are sold on "as is" basis. Check out this post for more details related to this article: https://www.encyclopedia.com/social-sciences-and-law/sociology-and-social-reform/sociology-general-terms-and-concepts/home. To complicate matters still further, when the developer is no longer interested in selling the units after the completion of the building, the condo owner must then choose to either move out on his own, or wait until the closing occurs and hope that the developer will sell the units at full value. If he does not, then he is out of luck. In most cases, he must then take on the expenses of new construction, which again adds stress and expense to the situation. Therefore, the pre-sale arrangement puts a tremendous amount of pressure on the seller to sell at the highest possible price to recoup at least some of his costs from the developer or his own agent, or to close on time to avoid paying additional fees. Click here to get more information about buying condos. One of the most heavily weighted factors in pre-construction condo sales is the seller's desire to avoid all of these additional financial pressures. In most cases, a pre-sale purchase restricts the available options to move, as well as severely limit the amount of time for an inspection of the condo. Even still, the sale of a pre-sale condo can sometimes allow for a buyer to inspect the unit before signing a contract. This is known as the 10 day cooling-off period. This provision is in place to protect the condo buyers from spending any money during the period of time that the new owner has control of the property. The Pierre Carapetian Group will assist you to get pre construction condos.
Condos located in good locations, with low vacancy rates, have excellent chances of selling for the highest prices after the closing. However, the problem comes when the condo is located in a popular area with a high average price of housing. These high priced condos almost always attract the least number of buyers, requiring higher closing costs. In most cases, an interim occupancy clause is added to a contract at the time of purchase, or during the term of the sales contract after the close of escrow.
This offers investors the opportunity to buy high-priced pre-sale condos without the potential concern that the market will depreciate the value of the home far quicker than the investor can recoup his investment after the closing date. The 10 day cooling-off period, combined with a seller who is willing to reduce their asking price, may make it possible to purchase a very nice pre-sale condo at a substantial discount to the market value. Most investors do not take advantage of this opportunity, however. They usually wait until the final closing date to begin looking for their own units. In many cases, they discover that the market has dropped considerably, making the possibility of finding a very nice condo outside of the condo real estate market too difficult. It is important to remember that in most cases, the pre-sale condos offer a very good value to the individual seller, and therefore, the value of pre construction condos is not affected by fluctuating real estate markets.