If you want to invest in property, it’s a good idea to invest in the preconstruction phase. It has become increasingly more popular due to the fact that there are many advantages that come with pre-construction property.
Here are 5 advantages of investing in pre-construction property in Mexico:
1. Pre-construction prices are lower than post-construction prices.
Pre-construction property is generally worth your investment because by the time the construction is complete, the property will have increased in overall value.
Purchasing property before the project is finished means that you’re paying less for the same property. In just a few years, it will have increased in value.
The value of property in Mexico has risen by 39% in the last 4 years.
If you consider the fact that your investment will appreciate in value and that inflation will erode your purchasing power, then you can see that buying sooner rather than later makes more sense.
2. Low initial investment can be achieved by buying pre-construction.
As with buying a built property, you are expected to pay 25%-35% of the total price as a down payment. But thanks to pre-construction property, you can build this down-payment through monthly installments throughout the construction time.
With a pre-construction property, you can make the required down-payment in regular installments as the construction progresses. This allows you to save up money over time instead of having to gather one large sum at once.
Or you may have the option to delay making monthly property-related payments until your new home or condo is ready for you to move in.
You can also make one large payment upon delivery to reduce the amount of time you’re paying for your mortgage.
3. Pre-construction property will save you on maintenance and repair.
When you buy a pre-construction property, you don’t have to worry about maintenance for a few years. Savings in the cost of repairs are an additional advantage of pre-construction properties.
As pre-construction, property in Mexico is generally brand-new and under warranty, maintenance and repair costs tend to be lower. It typically takes a while before parts start wearing out, making repairs more cost-effective.
You are likely to be spared the trouble of fixing leaky pipes, electrical wiring, and appliances.
Properties where the construction is unfinished already have some of the internal elements, such as electrical wiring and plumbing, in place.
4. Can be creative and personalize your home design.
Buying pre-construction property gives you the ability to make modifications before the building has been constructed. This is valuable because you can choose what type of decorative elements you want to incorporate into the interiors and modify the floorplan etc.
As an early buyer, you have the first opportunity to look at the design of the building and choose where you want to live.
You can select a home with better views, or closer to the beach, or on the north side instead of the south.
It’s a good idea to be an early investor. You can see models and ask questions about the development plans.
5. The growth in the value of your investment – Capital gain.
You can recoup your investment as well as make a profit by selling the property at the increased market value rate, or you can try to make a capital gain in the long-term while long-term rental.
As a real estate investor, you can choose to sell the property for a profit on delivery or rent it out to collect an income and sell at a later date.
If you choose to rent out your condo, you’ll be able to cover your monthly mortgage payments by collecting rent from the tenant or by hiring a property management firm.
There are many advantages to investing in pre-construction property in Mexico, and the ideal situation is one where you get a high return on your investment.
Whether you are a first-time buyer or a seasoned pro, the benefits of buying preconstruction are great.
Many people believe that investing in pre-construction properties in Mexico is risky.
In actuality, it is a really low-risk investment with a high return rate.
If you are interested in buying a pre-construction home in Mexico then Caribe Luxury Homes will help you navigate the complexities of buying a pre-construction property.