Buying new homes is always a risky business. Even responsible builders with a solid track record have punctures. In this case, the buyer needs to provide for the contractor’s responsibility when signing the contract. Even more, risks are borne by investors who have agreed to finance a project that so far exists only on paper. If you can visually assess the finished house, then you have to trust the developer in its absence. Investors do not have a guarantee that the construction will be completed on time and whether it will be completed at all. Of course, the construction company is liable under the contract, but force majeure events can make adjustments (for example, the coronavirus pandemic).
However, there are far more benefits of buying a new construction home than disadvantages. In this article, we’ll show you how the pricing of new homes stacks up. You will also find out what nuances you should pay attention to when buying so that the deal is the most profitable for you. And if you sign a contract at an early stage of construction, you can save additional money.
Introductory Pricing
Construction companies sell not only finished houses but also objects at the design stages or laying the foundation. This is necessary for the continuation of construction work, especially when it comes to a large condominium or an entire area. Moreover, the developer’s reputation and the attractiveness of investment increase if the company can offer the creation of a whole complex of houses at once, not one building. InewHomes offers to evaluate exciting investment options.
People usually understand benefits of buying a new build. You have already appreciated the attractiveness of buying a home early in the construction phase. Now we will focus on the details that you must consider before closing the deal. By doing a little research, you will save yourself from mistakes and save money.
First pick of location purchasing new construction
If you are buying an apartment or house in an actively developed area, you should pay maximum attention to studying the infrastructure. Answer your questions:
• Is there a metro station nearby?
• Are the city center, schools and hospitals far away?
• Are there parks, beaches, pets and gym nearby?
An additional bonus of the early conclusion of the contract is the choice of a land plot or apartments in a building under construction. The later the investor joins the game, the fewer options he has to choose from. If you want to sell the house in the future, you can earn extra money from this.
Greater Long-Term Home Value
Signing a contract with a construction company at an early stage, while the house is not yet ready, is beneficial to both parties to the transaction. The developer receives an accelerated profit and the opportunity to start constructing additional facilities in the future. The buyer reserves the property for himself at the lowest possible price. The closer to putting the house into operation, the higher the cost of the object. If the demand for real estate and, accordingly, prices increase sharply in a city or district, you will save even more in the long run.
Price growth is possible, not only closer to the completion of the building. The same developer can maintain a high price in the early stages of construction of the next property. This usually happens if the company can quickly sell all the houses or apartments erected in the beginning. Therefore, investors should focus not only on homes where the foundation is laid but also in populated areas. An even more profitable deal would be to buy real estate in a new field where there is nothing yet. Contractors usually complete infrastructure and other developments in 2-4 years from the start of the project. By this time, the profit of the first investors can grow three or more times.
Buying Early: Risk or Reward?
Concluding a contract at an early stage of construction is always a risk. That is why it is so essential to approach the question of finding a responsible developer thoughtfully. A reliable contractor may not be cheap initially, but the actual profit in the future is very tempting. In addition to financial privileges of buying a new construction house, early investors choose the best plot or the best apartment. If you have any doubts about the area and prices, be sure to consult with an experienced realtor. The presence of a specialist at the deal also help you get an additional discount.
