Investing in a pre-construction condo is great courage for most people because you buy something that is not yet completely built. There are a few things that you should consider when buying a pre-construction condo; you will be paying for all the maintenance, upkeep, and everything else that someone would pay for a fully built house. So, one should be conscious of the financial requirements of this.
A few misconceptions about pre-construction condo:
- People often assume that it will be costlier, but the truth is that pre-construction condos are cheaper because you book them at the time they get built.
- It is also generalized that every condo takes years and years to be built finally. All they need is sometimes because obviously construction will not happen in one day.
- There is another misconception that you need to pay a lot of money at booking itself. The truth is different. It depends on how the builder is charging you. Some take very fewer amounts in the beginning, while some take moderate.
- Another idea is that if you have a mortgage pre-approval, then your financing is guaranteed. But most of the time, that is not the case. The mortgage pre-approval is only for a maximum of 120 days; after that, the terms and conditions are renegotiated.
This proves that nothing can become a reason for easy financing. The bottom line is that if you want to find a duplex for sale, make sure to arrange your finances because a lot of things depend only on the builder.
But you are buying that for your needs and priorities, not according to the builder’s mood, so plan your finances.
- Since buying it is a big decision, there is always a cooling period allowed.
- Even after you’ve signed the papers and closed the deal, you might get second thoughts later; even then, you can back off from the agreement without any justifications, but only within a limited period.
- This period might be for up to 7-10 days.
When considering buying a pre-construction condo, most builders are usually not allowed without a preapproved mortgage because unless you show these documents, the builder cannot trust that once it is ready, you will not default on it. It depends on the builders. In some cases, when there is a lot of duplex for sale or the site is majorly occupied, then they might allow you without a preapproved mortgage.