,Investing in a pre-construction condo is considered among the best investments in real estate, regarding the possible returns that you can get. The main downside is that you have to wait for the projected construction period before you can move into the house. The benefits, however, outweigh the disadvantage by quite a lot. When looking to invest in Midtown Modern Showflat, for instance, you need to consider various factors to make the most of your investment. Below are some of the measures that you should take.
Find a Reputable Dealer
The first thing should be to find a dealer with a good reputation who has worked in the construction industry for many years. There is always a risk associated with putting money into a construction project that has not begun. Finding a builder that can be trusted to build high-quality condos based on the previous projects that he has done helps to minimize the risks.
Consider the Location
You should also ensure that you invest in a property that will be at the right location based on your particular needs and preferences. Ideally, the location should offer you the most convenience. For example, it can be near your place of work to reduce your commuting costs and the time you take to get to work daily. You can also consider other factors such as security in the neighborhood and nearby infrastructure.
Consider the Carrying Costs
As an investor, another essential factor to consider is the carrying cost of your investment. The carrying cost refers to the overall cost of holding inventory. Such costs may include condo fees, mortgage, insurance, and property taxes. Considering the carrying cost will help you make the right investment based on what you can afford.
Deposit Structure
In most cases, the deposits on pre-construction condos usually range between 15 and 20 percent, but that number may vary in different developments. In some cases, it can get to as low as five percent as a form of incentive. The deposit structure should be favorable to you based on your finances.
Remaining Inventory
If possible, you should invest in a pre-construction condo where you get early access. That can come with a variety of advantages, including lower prices, developer incentives, and a wider range of choices for the floor plans. That, however, does not necessarily mean investing in remaining inventory does not have advantages. The advantages may include cashback on final closing, extended deposit period, and waived assignment fees, among others.…