paulbr75 / Pixabay
There are many different options for investing in the real estate market. You can invest in pre-construction properties, existing properties, or even REITs. So, which is the best option? That depends on your situation and goals. This blog post will compare and contrast pre-construction vs. resale investments and help you decide which is the best for you!
Pre-Construction Pros
-
Customization
One of the benefits of investing in a pre-construction property is that you often have the opportunity to customize your unit. Customization allows you to choose your finishes, fixtures, and even layout in some cases. It will cost you extra, but this is a great benefit if you want to put your personal touch on your investment, like removing a wall, making room for a home theater, or your home gym equipment.
Get The Full Ray Dalio Series in PDF
Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues
Q1 2022 hedge fund letters, conferences and more
Sohn Investment Conference: David Einhorn Says Buy Gold
Whenever hedge fund managers present ideas at investment conferences, they usually offer stocks. However, at the 2022 Sohn Investment Conference, David Einhorn of Greenlight Capital laid out a compelling case for owning gold right now. “Indoctrination” Into Gold Einhorn’s grandfather started urging him to own gold when he was a very small child. His grandpa Read More
-
Lock-in Today’s Pricing
As a real estate investor, you want to realize the maximum possible gain on your investment. Another benefit of investing in pre-construction is that you can lock in today’s pricing without owing mortgage payments until the build is completed. If you have done your research and are investing in an area slated for growth, there is the potential for significant appreciation when your home is ready. Note that prices in the real estate market are constantly changing, and appreciation is never guaranteed. The assumption is that by locking in today’s lower price in a growth market, you can be reasonably sure that your investment will be worth at least the same amount (if not more) when the property is completed.
-
Low Upfront Investment
Pre-construction projects require a minimum down payment upfront, and regular installments are usually phased in over 1 to 2 years. The full payment is due at closing once the property is ready to move in. As a result, …….
Source: https://www.valuewalk.com/pre-construction-vs-resale-the-best-real-estate-investment/