The Advantages of Buying Condo Presales For Investors
It’s hard to find a more stable, more profitable investment opportunity than real estate. Real property has long been an attractive investment vehicle, one that delivers strong returns while minimizing risk.
But the real estate investment world is highly competitive, and both new and seasoned investors are always looking for an advantage. One way you can enjoy an advantage over the competition: buying into condo presales.
Condo presales offer a number of advantages that you won’t find when investing in other property types. Here’s a look at the top five advantages you’ll enjoy when putting your investment money into preconstruction condos.
When you choose condo presales, you get to take control of the process. You can often have final say in design plans and other important elements. And you can also choose your own finishes, ensuring that the unit offers the aesthetic and function that buyers or renters will love.
Because of your experience investing in condos, you’ll be able to create the exact look and feel needed to maximize your return. When you buy condos after the presale period, you’re left to accept whatever the builder or original buyer thought would look best. In these cases, you often have to make upgrades and updates on your own to ensure that the condo is ready for the open market, whether leasing or reselling.
Condo presales often come with a 2/5/10 warranty that helps you mitigate your risk and keep costs related to repairs and maintenance as low as possible. And, when it comes to real estate investment, what could be better than mitigating risk?
A 2/5/10 warranty covers labor and materials for the first two years, the building envelope for the first five years, as well as the actual structure for the first 10 years. Whether you’re planning to lease for the long-term or flip for a fast return on investment, a condo warranty protects your investment and helps set you up for maximum success.
Investing in a condo presale means that, by definition, you’re getting a brand-new unit. This should excite investors for several reasons.
First, there’s little need for maintenance and repairs, because everything in the unit is brand new. You don’t need to worry about the water heater of HVAC unit going out, and you don’t have to worry about dated finishes and design features turning off prospective renters.
And, second, new units often attract higher lease rates. Renters love to move into new and pristine units that feature modern designs and finishes. They’re willing to pay more for a unit that looks current and that feels less lived in than other options on the market. The bottom line: The perceived value of a new condo unit is higher.
Condo presale offerings are typically laden with incentives. You can find upgrades and other “extras” made available through the developer, which increase the value of your future unit at no additional charge. And you can also find contractual incentives, such as coverage of taxes on the property for a set number of years. These contractual incentives can greatly reduce your monthly or yearly obligation and put money back in your pocket.
Developers offer incentives for a simple reason: The sooner they can sell out a new project, the more they reduce their own risk. Don’t fight them on incentives. Take advantage, and make sure you’re getting the most bang for your buck when investing in condo presales.
Successfully investing in real estate is all about value. And it’s hard to find better value than what you get when you choose condo presales.
The price on a yet-to-be-built condo unit is artificially low to push sales and to reduce the developer’s risk. Also, you enjoy market appreciation while your unit is being built. By the time the condo is complete, you will already have equity, and you’ll also be able to lease or sell at a higher price than what you originally paid would suggest.
Find Strong Condo Presale Investment Opportunities
Are you intrigued by the promise of investing in condo presales? If so, we can help. Our business and our passion are connecting real estate investors like you with strong opportunities to get the ROI you’re looking for — whether through preconstruction condos or other real estate investment vehicles.