Many of the major cities around the world continue to enjoy significant growth and with it comes new construction, and with this leads to an increased demand for new upgraded housing. For those who are interested in investing in the international market, this continued growth also represents a significant opportunity for profit. No matter where you plan to invest, there are only two types of property available for you to invest in, that which has already been constructed (resale) and new construction (pre-construction). New construction represents an excellent investment, and here are a few reasons why you can save money buying pre-construction.
Pre-construction Typically Requires a Smaller Deposit
Even though you are dealing with an overseas builder, most will only ask you for a small deposit for you to secure a contract. In many instances, the required deposit can be as low as 10%, which can be a huge savings compared to the typical 20% down. Often the deposit is negotiable and is a good way for you to minimize your out of pocket expenses at least until your closing date.
New Construction Typically has Fewer Problems
When you invest in pre-construction properties, your property is not only brand new from top to bottom but will come with a builder's warranty (yes you can get them in many countries). This means that by purchasing the property before it is built, you have time to realize your investment and more before your property begins to cost you "real" money. At this time, you have to decide if keeping the property makes sense or if you would be better off divesting yourself of it.
Buying into an Emerging Market
Investing in emerging market before the property has been constructed lets you take advantage of an area that is likely to continue growing for at least the next several years. While you might be saving money getting into the game early, you are sure to maximize your investment as property values continue to rise.
Customizing Can Help Control Costs
By buying property pre-construction, you have far more opportunities to customize the final outcome to best suit your needs. From choosing the plumbing, lighting, flooring, and other fixtures, to what appliances are to be installed, you have the final say. By choosing wisely, you can realize significant savings in comparison to waiting until a property has already been built.
Take Advantage of the Latest Technology
Buying a property pre-construction also allows you to add in the latest technology, something that is in very high demand everywhere. While it might add slightly to the final construction costs, these are nothing compared to what it could cost you to completely retrofit an existing property, not to mention the amount of time the property would have to sit vacant.
These are only some of the reasons why you can save money buying pre-construction when investing internationally. Be sure you work with the builders you have chosen to ensure they know exactly what you want and expect before you pay the deposit and sign any documents.