Buying finished projects for your own personal repurposing here in Los Cabos is lucrative and comfortable, while rougher around the edges there is a sort of, behind-the-scenes magic pre-construction has in comparison. With the first 6 months of 2021 showing that the Cabo property market is on fire, high end and luxury inventory are being harder and harder to find, searching for good pre-construction opportunities in this higher price range can be both exciting and daunting at the same time. To make it a little easier, we wanted to highlight our top selection of benefits that you need to be aware of when looking at pre-construction.
1. Getting That Amazing Developer Discount When Buying Pre-Construction
Developer discounts are a big deal, in fact, it’s downright amazing. We all like to save as much money as possible and what’s better than saving up to 15-25% when buying pre-construction? The purchase price is one thing since it factors in the project’s labor, desired profit from the seller, and so on. Guess what? You don’t get that nearly as much with pre-construction. In fact, you get benefits for the added risk of not owning the property and tying up funds until it is complete. However, do note that this is far more preferable with proven developers, so be sure to consult a real estate advisor before jumping into any promising pre-construction expenses.
2. The Perks Of Maximized Return On Investment During A Sale
If done correctly, buying pre-construction will give you, the buyer, a larger upside in price appreciation as well as the ability to maximize your return on investment on a sale. Proper compensation for taking a figurative leap of faith, if you will.
You can take advantage of this in multiple ways, for example, let’s say you bought a condo in the pre-construction phase and re-sell it upon completion, guess what happens? Exactly, prices skyrocket and your investment will pay off. Knowing that your property is now worth far more than what you put in you are free to do as you please! Rent it, take the family out for a trip here in Cabo, or even re-sell it. The point of the matter is, you’ll make your money’s worth.
3. The Magical Wonders Of Rental Income And The Proper Timing Of Selling That Well-Used Property!
Renting out the property after completion is probably the best way to get a high return on investment and it can last well over 5 to 6 years after completion. Say, you want to earn some of that constant, magical rental income? Fix your property rent and mortgage charge and there, positive monthly cash flow. Now, eventually, we all know a point reaches where it's best to sell the property rather than rent it. Simply wait for that high season and sign that deal, no worries. Why? Well, you’re only going to get taxed 50% of your capital gains, because you purchased it during pre-construction.
If that’s not a promising set of advantages (tax or otherwise), then I don’t know what is. To sum it up, you can’t really go wrong with a well-planned pre-construction investment. If regular ones are already lucrative enough here in Los Cabos, just imagine the kind of money you’ll be making from a pre-construction deal.
Get in touch with us at HAC Arquitectura if you want more tips and help with getting your own place here in Los Cabos.