Episode 1 Tips – Real Estate Investing: Practicality of Owning A Pre-Selling CondoFebruary 23, 2018
Purchasing a condo offers convenience and practicality nowadays. It may be a smaller living space but that also means less cleaning and maintenance for you. Buying a condo is not inexpensive, so you better make sure you are putting your hard earned money in the right place.
We will make you a better investor by equipping you with the information you will need.
Here are more tips you can look into before signing that contract to buy and sell.
RESEARCH. You as the buyer have the responsibility to do your research. You need to find the best developer in the area you choose. Investing in a newbie or first-time developer can be a trap. Worst case is you might not get a refund for your deposit in case the project does not push thru or the developer goes bankrupt. You should check the reputation and integrity of the developer. How would you do that? Check their track record when it comes to turnover and completion of projects. Is it delayed, is it on time… if delayed its okay for the first 6 months. But if the developer delivers one year or more after the promised date, there might be something fishy. Investigate. There might be reasons for this and you should know to set your expectation. You may also check their previous projects, it should be good feedback from buyers and sellers (these are people who work for the developer).
Developer’s reputation. The developer should also have a good reputation and quality should not be compromised in their past and present projects. Some developers over promise and some showrooms you visit are not the precise and accurate representation of their finished unit. What can you do? Check brochures, maps and charts of the location. Is it the actual area where the building will rise? Is there really a space for living in the area or is it too cramped? Ask around. It won’t hurt to know your neighborhood. But sometimes, things do not go as planned. So as a buyer, it is your responsibility to probe. But remember, when working with a trusted developer, you get fewer risks and you get more security. Why? They are more financially secure and more likely to deliver. Why? Simple. They need to protect their reputation.
CHECK, CHECK, CHECK. As a responsible condo buyer and soon to be the owner, you should always check every now and then the building you purchased or purchasing. There might be changes within construction because if you read closely the contract, there is a clause that says “subject to change without prior notice.” What can these changes be? It can be Changes in material, floor plan, unit sizes, finishing or changes in the feature and amenities. Make sure your trusted developer remedies any defects or changes prior to settling in. Remember, quality should not be compromised. I’m sure you don’t want to pay for a unit that falls below your expectations.
LEGAL ASSISTANCE. Moreover, asking a lawyer for help with the statements and clauses in the contract is advisable. They would help you understand statements stipulated and the fine prints in the contract. They can also explain to you gray areas that our normal eyes don’t easily notice and understand.
A lot has already been said and the decision must now be made. Is pre-selling condo really for you?
One last piece of advice, purchasing a pre-selling condominium will give you more time to decide and save up for your appliances and furniture and decide on the theme you will work within your new home. I’m sure you know what I meant by that. Pre-selling condominium is the ticket to your future home.
(You can read the Second Episode: Rationale)