Is Preconstruction the Right Investment for You?
Sunday Jul 11th, 2021
Residential real estate is popular for a reason – it’s a good bet. It provides excellent returns on investment and a steady flow of income. One of the fastest growing sectors with high and fast ROI’s are preconstruction. They’re available, in need of capital, set in great locations with high demand and they’re a smart investment. Here are 5 reasons why preconstruction is the right investment for you.
1. Lower Initial Prices & Higher ROI’s
Preconstruction real estate offers lower investment demands than finished condominiums. That means you can make a higher return on your investment either by reselling it or renting it out. Properties like this that are increasing in demand mean that you will get more money than what you put into the property. Getting in on the ground level of the investment will also ensure you get a better deal and a bigger opportunity.
2. Faster Returns
Not only do you invest less for more in the long-run, but you also ensure that you get your money back at a faster rate. The high demand on condos means you don’t have to wait as long to see your ROI. It’s easier to sell and rent a never-lived-in property than an older home, which means more options for you.
3. Instant Equity
Instant equity means that the moment you invest, your investment is worth more than what you put into it immediately. You won’t have to wait one or two years for an ROI because your preconstruction property increases in value the second you sign the deal.
Many times developers will offer extra incentives to gain the investors they need to build the property. These incentives can increase the value of your property and can include things like countertops, appliances, or furnishings – making you not only more attractive to new customers and buyers but also saving you time and money while increasing your property’s pricing.
There are also contractual incentives aside from cosmetic ones that increase profit, like having taxes paid on the investment for a set number of years.
5. Market Viability
There are a large number of people wanting to retiree and looking for condos, especially in the GTA. Gone are the days of wanting big homes that are a lot more work to maintain and farther from the action. Preconstruction investments in condos is a smart investment move because of the increase in demand – now and in the future.
Preconstruction real estate investments can make you soaring ROI’s. And in this ever-changing market, preconstruction condos are becoming more and more a hot commodity. This type of investment is not only beneficial and can be done at a lower cost, but is a wise decision. For a free consultation, contact Alaa Yousif for more information to see how you can get in on the preconstruction bandwagon.