Cons Vs. Benefits Of Buying Pre-Construction

Pre Construction can be profitable and provide the easiest entry to owing real estate if done correctly. The top 3 benefits include:

Potential for Appreciation:
Buying at today’s prices with a future completion date often means the property could increase in value by the time it’s built. This can be especially advantageous in a up and coming higher growth area.

Graduated Payment Structure:
Buying pre- construction comes with the added of perk of paying small chunks for a downpayment on dates and amounts specified by the builder instead of the traditional 20% immediately like with resale properties.

By Passing Mortgage Requirements And Unfavourable Interest Rates:
Pre-construction properties typically dont require buyers to get a mortgage until the property is completed in several years time allowing buyers more time to build wealth for easier approval. Due to the timeframes it takes for completion it is also a good option when looking to own additional real estate without having to pay current market interest rates.

Working with an experienced realtor should minimize most risks, however these are 3 notable ones which may still occur. 

Uncertainty and Delays:
Construction delays are common, meaning the completion date might be pushed back, which could be problematic if you need to move by a certain time.

Market Fluctuations:
The market could change by the time the property is completed, possibly leading to the property being worth less than what you initially paid or expected.

Lack of Tangibility:
Since the property isn’t built yet, you’re buying based on floor plans and artist renderings, which can sometimes lead to disappointment if the finished product doesn’t meet expectations.