You might think that it’s hard to go wrong when buying a pre-construction condo but the chances of losing money in this investment are fairly high if you miss the key points. Whether you are a first-time buyer or a seasoned property investor, you need to know the risks associated with pre-construction condos. Purchasing an investment property is one of the biggest decisions and a greater financial commitment. Over the years, pre-construction condos have grown in value. So, until the time the condo is ready for occupancy, the property would have already increased in value.
Here is what you must not skip when investing in a pre-construction Kelowna condo.
1. Preconstruction condos are second homes
While some people invest in pre-construction condos as first homes, they are best suited as second homes or purely for investments. For first-time buyers, getting deals from reputed builders is necessary. When purchasing the condominium, you gain the right to own it once it is built and the builder may make changes to the building or the interiors. But you can expect the project the to get canceled as well due to whatever reasons and the first-time buyers may be deeply impacted. Those investing in condos or those who want to own them as second homes may not feel the heat of the project getting canceled.
2. Launched in different phases
The builders associated with pre-construction condo projects sell them in different phases. Usually, the first phase is dedicated to the people within the company, and the succeeding phases are related to the sales volume of the agents and many of them share access with the network of affiliate agents. At Sotheby’s Kelowna, agents often share their access.
3. Hard to avoid delays
A majority of the pre-construction condos are delayed due to various reasons. So, the developers apply a few tricks and tactics before setting the closing date. If you are planning to buy a condominium, get ready for delays that may or may not be in the developer’s control. You may add at least 6 months and push it up to two years.
4. Check the location
The location is one of the most important aspects of a pre-construction condo and more so when you have in mind the delay in the completion date. The best option is investing in an area with a good track record near the downtown or an area that takes you to the downtown. Remember that you will be paying more for highly demanding areas. Search for new condo developments Kelowna before you invest.
5. Know the builder
Once you pick the location for a preconstruction condominium, you need to research the builders as well. Find out how many projects has the company completed in the past or whether they have completed and delivered the projects on time. Even though delays in condo construction are inevitable, a builder with a track record of early delivery is more reliable than a fleet of builders.
6. Amenities in the project
The condo amenities attract buyers to a great extent. If you are planning to rent out the property in the future, the more the amenities, higher the rent you fetch. Look for developers that ensure that the project has several modern amenities to appeal the buyers and the tenants.
7. Check the layout
Choosing the floor plan of a condominium is one of the most challenging tasks to undertake. The situation often becomes overwhelming when you are a bit unsure about the size of the family. So, you can keep in mind the entire area of the Kelowna condo in which you are investing. When choosing the layout of the property, make sure it meets your needs and the budget requirements as well.
8. Access to public transportation
If you need to commute to and from the workplace and do every chore using the public transit system, make sure your investment is close to the public transit system. What’s more, accessibility to public transport will make your condo attractive to the tenants as well.
Purchasing a pre-construction condo is a long-term investment. With so many options around you, the decision often becomes unnerving. You need to focus on the above-mentioned points and make sure you get the perfect investment option. Justin O’Connor Group features eminent property listings and is a name to reckon with when investing or selling in a new home. Know which condos to invest in from them and nurture the returns for life.