Preconstruction as Investment

[scottycam]

Hi Everyone,

I'm looking to see if you experts can assist. I'm looking and am interested in a property I saw over the weekend. THey are preconstruction condos with all the nice amenities. They seem pretty reasonable for a condo, not to mention that its about a block from a university, so I'm thinking... college students or transfer students might prefer that over the dorms. Can you shed some input on this on what you're thoughts are.. Also.. do you guys know how preconstruction prices work? Would I have to start paying the mortgage soon or usually when its done. If you can let me know any and all info, It would be great!!! I'm excited cause this is a first investment opportunity that is within my reach...

Thanks!!!!

Again.. ANY AND ALL INFO IS BETTER THAN NOTHING!!  :-)


-SC

[hinestro]

Hi,

I most cases you do not pay anything for a pre-construction besides the initial deposit. You usually depending on the market will put anywhere from 5 to 20% down and then do not pay anything until it is time to close on the unit which is when the building is done.  It is an advantage to have a university close to your property but you also have to evaluate the area, current vacancies and what the average rents are in the area and whether you can cover your rent once you close on the unit.

Good luck