Pre-construction real estate investing is increasingly popular among investors. A lot of investors and people looking for a home have realized that buying real estate before development is preferable to construction. There are numerous reasons to invest in pre-construction and we listed a few below.
Knowing the benefits and differences between buying a pre-construction or construction property is crucial whether you want to buy a home or invest in real estate.
Pre-construction Real Estate Property
A pre-construction real estate transaction is the acquisition of property, most frequently a condo, before the project is finished. Early buyers have the opportunity to purchase high-quality real estate at a lower price than those who wait until the project is finished.
Pre-construction buyers will also have less competition from other investors, allowing them to enter the market before events like bidding wars can occur in structures that are particularly desirable.
This has more advantages because buyers can monitor the realtor’s job and make sure that the construction is to their liking and satisfaction. When the construction is fully completed, investors can sell at a higher price.
Fully Constructed Real Estate Property
This is not to be confused with “pre-construction property.” A finished structure costs extra since it has polished woodwork or polished marble floors.
One of the major disadvantages of choosing a ready-to-move-in apartment over one that is not yet built is the higher price. Everyone wants to buy a quality home at a cheaper price. Investors also want to buy at a cheap price and sell at a higher price.
Because most individuals are not sure about the benefits of investing in pre-construction, they tend to avoid it ignorantly.
So is pre-construction a good investment?
Definitely, any real estate investor looking for a great investment option should consider it.
Why should you invest in Pre-construction Real Estate
Pre-construction real estate offers a lot of advantages over traditional real estate. There are many reasons and benefits to investing in it.
However, here are some significant ones:
Choice of Structure
Pre-construction real estate allows you to select the best location for your unit within a building. Its precise position, and its view since the building is not yet constructed. It is often possible to do so in a new development. As an example, you can select a corner unit with natural light and a better view
The resale value of pre-construction units is often higher than that of existing homes. Because buyers are often willing to pay a premium for a brand-new home.
Pre-construction units often appreciate value more quickly than existing homes. This can make them a great investment. Whether you plan to sell before or after construction is completed you will be able to acquire the property for a cheaper price than when the project is completed.
Down payment which aids in Budgeting
In most preconstruction sites there exist a spread payment system where you have 2 -3 years between the time you sign a contract and when construction is finished to complete your payment. This is because you are not purchasing a property that is already constructed.
This system gives you the opportunity to acquire a property without breaking the bank and you definitely go for the best with enough time to budget accordingly.
Brand New Unit
One advantage of purchasing a pre-constructed building is that you won’t have to worry about maintenance or repairs for many years.
Because everything in the unit is new, with new appliances, new finishes, new amenities, and under warranty.
We all know there is just a new feeling that comes with having to enjoy new amenities and equipment. Any issue that arises will be handled by the real estate management. At no additional cost attached to you.
In addition, as real estate prices rise and populations grow, there will always be a demand for housing. So values will continue to appreciate.
By purchasing pre-construction, you get to enjoy all the benefits of buying a brand-new condominium without having to deal with renovation headaches.
The above factors make pre-construction condos a wise investment for anyone looking to buy a home in Nigeria.
In conclusion, even though everything we’ve discussed so far is important, working with the right real estate company is crucial.
If you are ready to take the plunge, we invite you to visit one of our preconstruction projects in Edin City, Benin, Nigeria. Give us a call. You can fill out the form below to indicate your interest in being part of the project.
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What you should know before investing in pre-construction real estate
Before going into a Pre-construction investment you need to put into consideration the Land / Property documents, Carry out a proper investigation, Survey the typography, etc.
We will establish this in our next blog post.