When you think of buying a pre-construction condo in the US, you are approaching the idea of investing almost like a dream. If you are lucky, you will have plans, renders or plans that will help you get an idea of the possible result. On the other hand, you will have a stronger vote when it comes to options on the future building, and you will surely be offered a deep discount, since you are somehow financing the entire construction. So what needs to be taken into account? How can risks be reduced and benefits maximized? When it comes to buying a pre-construction condo in the US, you need to weigh the pros and cons, and keep an eye out for some of the following items.
What does foreign investor mean?
You will discover that a pre-construction building has different stages in a highly visible timeline. Those are:
- Booking. The developer is still making plans. There are only plans and renders available, all of which can change long before the completion of the project. Top tier pricing is available to you if you sign up for the project early. Therefore, one of our strongest suggestions is that you enter as soon as possible. Not only will you get the biggest discounts, but you’ll also be able, in most cases, to put down a deposit without even buying the entire unit right now. Work with a known broker so you can rest on it. Sure, the deposit requirements won’t be difficult to meet, and if you cancel early, chances are you won’t be penalized. Also, if you arrive early, you will have a wider selection of units to choose from. If you are a multi-unit investor or buying your home, this is a convenient stage to enter.
- Contract. This stage of projects begins with approval. The government will announce the purchase agreement to those who have already made a reservation. After this agreement, you will have 15 more days to review everything before cancellation penalties begin to apply. Surely you will have to make another deposit and the prices have increased since the booking phase. On the good side, if you enter at this point, you will have more certainty that the project will be completed.
- Breaking ground. 18-24 months is the average duration of the construction phase of luxury buildings. Your capital will be multiplied at this point, although new payments will be required at certain milestones. If these are too surprising or come at a time when you have a tight budget, you can rely on a home loan.
- Termination. After construction comes inspections. And after the inspections, you can close your condo. You’ll find that you’ve saved tens of thousands of dollars by showing up early. You can now take ownership and, if you wish, resell at a lucrative price.
Search for the experts
Buying a pre-construction condo in the US is not difficult. Only, if you are not an experienced buyer or investor, you should seek advice. Real estate agents in trend will help you choose the best options, enter the project at the right time and advise you with mortgage loan options if you need them.
If you also need advice or advice on your financing to invest in this project, or if you are not a resident, you can contact us. We are experienced lenders when it comes to foreign domestic mortgages, we know very well the real estate markets of Miami, Orlando, Texas and Colorado, each of them with their particularities, and we can also advise you on the locations, neighborhoods, developers and some other factors that can affect your future property.
When you choose to invest in a pre-construction condo in the US, you are faced with an exciting proposition and you need to plan diligently and work with the best advisors you can get. In the end, your vision and encouragement, but also your network, will lead you to success.