Investing in a pre-construction condominium is not a small decision and can be a big financial investment, particularly for those looking for their forever home.
Buying a pre-construction condominium can be stressful for some buyers because the property is not completed, so buyers are purchasing a home based solely on renderings and concepts provided by the developer. On the other hand, buying pre-construction can have many benefits, like total control over customization and final result.
There are many myths out there about pre-construction condos – this blog will detail why those myths just don’t make sense.
Myth 1: You’ll be waiting forever for your condo to be finished
One of the most commonly-held beliefs about pre-construction properties is that they take a long time to be finished. This belief doesn’t hold any merit if you are buying your condo from a reputable builder or development company.
The truth is, many builders will do what it takes to meet the development deadlines they set when they started the project. Having a high-quality end product is important, and many developers have planned and scheduled each condominium build down to the details so they can meet their deadlines.
Seaton Place Condominiums, for example, provides each of our homeowners with a schedule which is periodically updated, so each of our customers have a reasonable expectation of when their home will be complete.
Myth 2: I can save money by renting rather than buying
Many older homeowners or empty nesters are looking for a property that is easy to manage, so a common myth among this group is that renting is the way to go.
Pre-construction condominiums are a great alternative to renting, because by the time homeowners take possession of the property, they will have already paid down part of their mortgage, making it more affordable and lowering future payments.
Also, the time between purchase and possession gives home buyers the chance to save money to put toward future payments.
Federal income tax policy allows you to deduct mortgage interest and property taxes – benefits you will not receive as a renter. If you are in a 25-30% income tax bracket, you will receive an approximate 25-30% net savings due to federal income tax savings.
In today’s market, home prices are increasing rapidly. Agreeing to a fixed price for your condominium now saves you money by protecting you against future price increases that inevitably occur.
Myth 3: You’ll be hit with a surprise bill
When purchasing a pre-construction condo, there can be many fees and charges that make it challenging to account for the total cost of ownership. Maintenance fees, property taxes, and utilities will also need to be budgeted for.
Any reputable builder will never hide these costs from their buyers and will even work with each buyer to ensure these costs are built into their budget and monthly payments.
Many developments have homeowner’s associations, but at Seaton Place, you own your own condominium. This way, you don’t have to pay HOA fees, which is one less bill you will be responsible for.
Seaton Place Condominiums is funding the construction of your home with our funds. Your deposit is held in escrow and only used for your equity at the time of closing.
Myth 4: You don’t know what you’re going to get
When you purchase a pre-construction condo, you might be able to tour a completed model, but in many cases, you may not. That can make it difficult for buyers to know exactly what they’re going to get once construction is completed.
Developers selling pre-construction condominiums almost always offer renderings and floor plans of each unit they are selling, as well as assist their buyers every step of the way to ensure the end result is exactly as expected. When you work with a reputable developer, you are in safe hands.
You can talk with the real estate agent or the developer, visit their office or showroom, look at their floor plans, and even more. Before you commit to a purchase, sit down with the developer and have them walk you through everything: the options, the finishes, and the final price of your new home.
Don’t be afraid to ask questions – whatever it takes for you to get some peace of mind.
The bottom line
There are many misconceptions about buying a pre-construction condominium, but when you are working with trusted, experienced developers – like the ones at Seaton Place Condominiums – you will fall in love with your condo.
Pre-construction condos offer buyers the chance to build their dream home. Get in touch with us at Seaton Place Condominiums to learn more today!