Condominiums are considered as one of the most viable
residential options today. We see them sprouting just like mushrooms literally
everywhere. As such, more and more
people are being lured into taking a sneak peek into model units and websites
that are filled with promises of safe, resort-like sanctuaries that can be both
beautiful and functional, and not just your ordinary weekend getaway
haven.
Most real estate companies market their product via
pre-selling methods. For you to understand this method better; here are some of
the things that you should know before you make the decision. Below are some
points that shed details to the world of real-estate pre-selling.
The Advantages
Cheaper Prices
Of course, you've nothing to buy - just yet. What is offered are images on paper or
screen, and a piece of land that has yet to undergo groundbreaking. You're literally buying air. When you choose to buy a condominium unit at
its pre-selling state, the prices are extremely low compared to buying a unit
that is ready for occupancy. This is
because when the promise is tangible and people can see what they're putting
their money on, their calculations are validated by it. Whereas with pre-selling, what you initially
pay for is the promise of the image that has just been vividly described in
their marketing collaterals.
Investment Option
For the investment savvy individual, he sees a real estate
parcel as a piece of investment that he may be able to use in the future. Once construction is done and the unit is
already physical, they could resort to renting it out, timesharing or even
re-selling it with of course a higher market value. This would prove to be a good option for
those who know the ins and outs of investing in real estate properties. It will be profitable for them as they are
aware of the good locations, good qualities of land and better options for
marketability.
The Downsides
Volatile Market
The market is very volatile and prices can increase and
decrease at any minute every single day.
If you indeed settled for a condominium unit at a pre-selling state and
the markets are dwindling, there might come a point where your advisor will
call you and explain about surplus charges that weren't even part of the
initial contract. And this has to be
settled and understood as well to cover the aspect of market volatility.
Location
You might be lured into thinking that you're buying a unit
located in a prime spot. You're given a
promise of a lakefront view and a daily dose of sunshine - until another
developer blocks your magnificent view and replaces it with uniform windows and
facades as another skyscraper is about to rise on the opposite side. For condominiums set in bare lands, those
promises shall remain as such. The
developer's limits are within his land jurisdiction, and whatever springs
around the enclosure is not their call.
So if you're looking into pre-selling, better spot a condominium that is
perfectly situated in a place where there is little chance of change with
regard to issues such as this one.
Limitations
Since you are about to purchase a piece of property that
promises a lot of resort splendor, you may think that you can do just about
anything you fancy. However, when
everything is done, you might be faced with limitations regarding noise and
pollution control. You'll experience the
do's and don'ts. No loud partying. No pets.
No use of the gym beyond this time.
And so forth. You may not see
them coming at the early stages but these might come about anytime once you move in.
Author Bio:
This is post is written by Marlin Codie of
Calgarypropertypros.ca which shows houses
for sale in calgary. Marlin likes to write posts regarding real estate and
home improvement ideas.
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