Why buy a preconstruction when I can buy a condo which is available now?
By purchasing pre-construction you are able to leverage your down payment and control 100% of an appreciating asset with a mere 20% investment. Many people have purchased preconstruction condos and have sold their units for a profit even before the building is 100% completed.
What size to select and on which floor should I buy?
If you are expecting to close and live in the residence then you should select the view and floor level that will appreciate most over time as well as one that you will enjoy living in. The higher floors with unobstructed views are the best and most valuable. If, however, you plan to lease the condo out you will want one that appeals to the greatest number of potential tenants. Normally one bedroom or two bedroom condos are better because they will attract couples, parents with a child or singles with a roommate. If you plan to sell your condo for a profit as quickly as possible then the least expensive unit on the lowest floor have shown the highest percentage of return based on previous condominium resales.
What are the deposits for preconstruction condos?
With most preconstruction condos you will be required to pay US $5,000 to reserve the property, another deposit to complete twenty (20) percent of the purchase price with the signing of the contract or by the time the developer “breaks ground”. The subsequent terms of payment vary depending of the developer. Ask your agent for the specific payment plans for the different pre-construction communities selling now.
Can I sell my pre-construction condo before it’s completed?
Yes, You must have written permission from the developer. 1. You may sell your right to the condominium unit by transferring or assigning the contract to a subsequent purchaser. 2. You may sell your unit under a real estate contract upon completion of the condominium. Two real estate closings will occur simultaneously, your purchase, and the sale to your buyer.
What are the advantages of having a relationship with a RE/MAX Tropical Real Estate Agent when purchasing Punta Cana pre-construction? projects?
A professional RE/MAX Tropical real estate agent will:
- Alert you about new preconstruction projects before they are made public
- Help you compare the pricing in similar buildings in the neighborhood
- Inform you about community infrastructure developments such as service, retail, and governmental investment that may affect the future value of your property
- Help you negotiate the terms of the contract and advise you on alternative choices that may meet your needs
- Share information regarding the relative financial strength and track record of a developer with you
Finally, since all realty fees are paid by the developer, you are getting the services of the RE/MAX Tropical Agent at NO cost to you! For more information contact us firstname.lastname@example.org.
Each preconstruction condo project proceeds through 4 different stages:
Stage 1: Reservation
In this stage, the developer offers the units at the lowest ground breaking prices. These prices are always below the market price and give the developer the chance to pre-sell prior to construction. The buyer will find the great opportunity to “reserve” the selected unit with a deposit of US $5,000 and an offer or “reservation agreement”.
Stage 2: Contract
Within a few weeks of the reservation agreement, the buyer will receive a contract specifying in detail all the legal and technical specifications of the development.
Stage 3: Construction
When the construction of the project begins or the construction “breaks ground”, another deposit may be required. The construction may take between 18 months to 2 years to complete. Another percentage may be required when construction reaches level where buyer’s property is or when roof of the building is fully complete. Your agent can give you the details for each particular project.
Stage 4: Closing
Once the development is completed (18 months – 2 years later), buyer completes the transaction by “closing” the purchase/sale. At this point, the remaining balance will be required, and the mortgage or the cash payoff will have to be available, along with the closing costs and all the typical expenses related to a DR real estate transaction and the buyer will receive the keys to their new home.