Pre-Construction Projects: The Best Investment Option

When we search for real estate projects, we generally explore all available options regardless of the development phase. But did you know that you can save much more if you choose pre-construction projects?

The pre- construction stage of real estate projects is prior to the blank sale, which allows you to save even more money and access a wider offer. In this article, Canadian real estate developer Jack Bistricer explains the top things you need to know to ensure your pre-construction investment is a sound one.

What does it mean to buy in the pre-construction phase?

Investing in the pre-construction phase is very similar to buying a blank apartment, since in both cases it is about negotiating the property when it is not yet finished (in the case of the blank sale, the property is only in plans).

Now, the difference is that with the pre-construction of real estate projects you can start the buying process when the offer is not yet public or massive. Sometimes pre-construction projects are handled with a certain exclusivity because they guarantee the lowest possible price.

Therefore, to access projects in the pre-s construction phase, it is necessary to have the help of real estate agents who can provide this information in advance and facilitate the procedures.

Why invest in a pre- construction project?

If the objective is to maximize the profitability of our investment, the idea will always be to choose projects that are still “in their infancy” to save as much as we can, exercise greater negotiating power and obtain a better return.

If we invest in a project for immediate delivery instead of buying a blank apartment or presale, it is normal that we end up paying more, since the construction will be far enough advanced to be listed and there will be a greater public interest.

On the other hand, we will have less variety and freedom of choice in matters such as the orientation of the apartment, the finishes or the parking spaces, for example.

In any case, we must bear in mind that there are also risks associated with the purchase of pre-construction properties, adds Jack Bistricer, Chairman & Chief Executive Officer at Talisker Club.

We must remember that we will not see the finished project when we sign the promise of sale, because it will still be in development and that implies that, if we do not choose well, we could be disappointed.

This increases the importance of choosing a reliable real estate when investing in pre-construction projects. Although insurance policies protect us in case of default, there is also the issue of delays in delivery when the start of the project is postponed, something that can harm the profitability of the investment.

How to buy in the pre-construction phase safely?

To mitigate the risks mentioned above and take advantage of the best prices, Jack Bistricer advises seeking the help of experts who can guide you on the path of real estate investing.

In Jack Bistricer’s blog, you can find tons of useful advice on how to access real business opportunities in the real estate sector.

Ultimately, the key thing is to choose a developer who has a solid track record of executing on their development plans in a timely fashion and without excessive delays.