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Preconstruction vs. Completed
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Preconstruction vs. Completed Units
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Both preconstruction and complete projects have their advantages as investment properties. Choosing
between preconstruction and completed will most likely depend on your investment strategy and your financial situation. Here are some
benefits and drawbacks to each type of property.
Preconstruction
Benefits
- Units are usually offered at a discount.
- Buying preconstruction does not require you to pay the entire price of the unit until it is built.
- Your unit can appreciate while it is being built.
Drawbacks
- You may have to wait several years before your condo is complete.
- Your condo may decline in value while it is being built.
- If you run into financial trouble you may have to walk away from your deposit.
- The market or area could deteriorate during construction.
- You are unable to rent the unit until you receive a certificate of occupancy.
Completed
Benefits
- You can rent the unit to help pay your mortgage and build equity.
- You can take possession upon closing.
- You can use the unit as a vacation property.
Drawbacks
- You immediately have a mortgage payment to cover.
- You must pay association dues in addition to your mortgage.
- If the market begins to decline you may have difficulty selling your unit.
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