When you think of buying a pre-construction condo in the US, you are approaching the idea of investing almost in a dream. If you are lucky, you will count on floor plans, renders, or blueprints that will help you make an idea of the possible outcome. On the other hand, you’ll have a stronger vote when it comes to choices on the future building, and for sure you’ll be offered a great discount, as you’re in some way, financing the whole construction. So, what is there to take into account? How can you reduce the risks and make the most of the advantages? When it comes to buying a pre-construction condo in the US, you should consider the pros and cons, and be alert on some items following.
What you should know before investing in pre-construction condos in the US
You’ll find out a pre-construction building has different stages in a very visible timeline. Those are:
- Reservation. The developer is still making plans. There are only blueprints and renders available, all of them can change a lot before the completion of the project. First-tier pricing is available for you if you sign up early to the project. Thus, one of our stronger suggestions is that you enter as soon as possible. You’ll not only be getting the deepest discounts but also be able, in most cases, to place a deposit without even buying the whole unit at this point. Work with a well-known broker so that you can rest on him. For sure deposit requirements will not be hard to achieve and, if you cancel during the first stages, most probably it will be with no penalties. Also, if you get in early, you’ll have a wider selection of units to pick. Whether you are an investor buying multiple units or if you are buying your house, this is a convenient stage to get in.
- Contract. This stage of the projects begins with approval. The government will release the purchase agreement to those who already made a reservation. After this agreement, you’ll get 15 more days to go over everything before penalties for canceling start to be in force. For sure you’ll have to make another deposit and prices have increased since reservation phase. On the good side, if you enter at this point, you’ll have more certainty the project will be completed.
- Breaking ground. 18-24 months is the average lasting of the construction phase for luxury buildings. Your capital will be multiplied at this point, although you’ll be requested new payments at certain milestones. If these are too surprising or come at a moment you have an adjusted budget, you can rely on a mortgage loan.
- Completion. After construction come inspections. And after inspections, you can close on your condo. You’ll realize you’ve saved tens of thousands of dollars because of getting in early. You can now take ownership and if you want to, reselling at a lucrative price.
Search for the experts
Buying a pre-construction condo in the US is not hard. Only, if you are not an experienced buyer or investor, you should look for advice. Realtors on trend will help you choosing the best options, entering the project at the right timing and asses you with mortgage loan options if you are in need of.
If you also need assessment or advice on your finance to invest in this project, or if you’re not resident, you can contact us. We are experienced lenders when it comes to foreign national mortgages, knowing very well the Miami, Orlando, Texas and Colorado real estate markets, each of them with their particularities, and we can also assess you on the locations, neighborhoods, developers, and some other factors that may affect your future property.
When you choose to invest in a pre-construction condo in the US, you’re getting into an exciting proposition and you need to plan diligently and work with the best advisors you can get. In the end, your vision and your encouragement, but also your network, will drive you to success.