Thursday, May 22, 2014
Pre-selling real estate schemes have gained quite a market, with many home buyers with flexible move-in dates becoming attracted by the significantly lower prices. However, pre-selling properties are not just for home buyers.
These properties can also be a good investment for property investors. The low buy-in price can be an opportunity to maximize property appreciation in just a couple of years. Investing in pre-selling property also has several other benefits…
Pre-selling property is sold at low prices – this is what attracts most people. These properties can be discounted by as much as 30 percent as compared to buying a finished unit. Investors may be able to sell the property upon turnover or even later on at a higher price, giving them significant profits.
Flexible payment schemes
Developments that are being sold at the pre-selling stage also offer flexible payment schemes, with the down payment being as low as 10 percent of the selling price. This is a practical feature home buyers may enjoy since the property purchase can be easier on their finances.
On the other hand, for real estate investors, flexible payment schemes are a good opportunity because their money can then work for them elsewhere before paying for the property in full.
Generally, only a few units are sold during the pre-selling stage. Property investors therefore have more options to choose from. Much-coveted corner units and desirable unit locations may still be available at this point. As an investor, it’s important to pick the most desirable units so you can sell or rent out the property more quickly later on.