Should you invest in a property that doesn’t yet exist?
Higher interest rates, cost-of-living woes, and changing property markets have all seen investors proceed into 2023 with caution; however, smart decisions can circumvent these headwinds and assist wealth generation.
Apartment versus single dwelling, acreage versus high rise, and old versus new — all these factors are worthy considerations when it comes to purchasing the right property.
Acknowledging that some investors may be contemplating pre-construction investments as their next purchase, real estate network RE/MAX has offered some considerations which could be taken into account during the deliberation process:
Pros:
- There are no negotiations with previous property owners or maintenance work to be conducted, which can offer both time and money saving.
- If the investment is a single dwelling, buyers are able to have an input at almost every aspect of the property — from location, to building position and layout, right through to design inclusions.
- Developers are often motivated to sell properties while they remain on the plan — which could play into investors’ hands.
- Often, maintenance and repairs in the initial few years of ownership are minimal, with many repairs and defects covered under builders’ warranty.
- Strong resale value is common.
Cons:
- It can take time for projects to come to fruition as developments can be met with setbacks, which delay a purchaser’s return on investment.
- Despite being built to capture and establish community, new developments may lack established facilities.
- Newer developments can boast modern features but lack the character and history of older properties.
Finding the right property is never easy; however, it is paramount to always consider the positive and consequences of any investment before embarking on the journey.
SOURCE: Smart Property Investment By Kyle Robbins 1/2/23
