Investing in pre sale real estate developments can be an attractive option for investors looking to capitalize on the potential for appreciation in the value of the development.
Investing in pre sale real estate can allow investors to purchase with a discount to its expected value at completion, and offers substantial capital gains.
In addition, investors can benefit from obtaining financing at a lower interest rate, which developers can offer in exchange for the investor’s commitment to purchase a pre-construction unit. Finally, investors can benefit from the potential income generated by the rental before its completion.
It is a medium and long-term investment; however, when the profits begin to be received, they are stable and safe compared to other investments.
What are the advantages of buying a pre-sale property concerning the location?
1. Pre-sale properties are usually available in desirable locations; otherwise be unavailable or limited to high demand. This can give buyers an early chance to secure a property before the market becomes too competitive.
2. Potential for capital growth: often bought at a lower price than those in the resale market, meaning buyers potentially benefit from capital growth when the property has been completed.
3. Lower risk: Pre-sale developments are typically developed by experienced developers who have a track record of completing successful projects. This reduces the risk that the project will not be completed or that it will not generate the expected returns.
4. Quality assurance: Typically are built to a high-standard, as developers attempt to maximize the value. This provides investors peace of mind; they are investing in a quality product.
5. Tax benefits: Pre-sale properties can provide buyers with a range of tax benefits. These include tax breaks, as well as depreciation deductions.