|You may build in the RIGHT neighborhood, or you could miss.|
Buying U.S. property that is pre-construction which is also known as off-plan like so many real estate deals can be a great thing or it can be a nightmare.
Florida Real Estate Attorney
I'm attorney Eric Lanigan, a real estate attorney since 1976. I was born, raised, schooled and have worked in Florida so I know the market.
There are ups, downs, good areas to buy and horrible places to buy investment properties.
More importantly, I know Florida real estate pitfalls. All of them. I've seen really bad decisions made. I've seen people ripped off because they didn't know a home was full of black mold, or on swamp land or in a sink hole likely location.
In Florida, it's what the sellers know that you don't know that will indeed hurt you.
Tips for Buying an Off-Plan Property
When you’re buying an off-plan property, it means that the home has not yet been built. There are often great deals and deep discounts to get the property sold before construction costs kick in.
The builder is leveraging your money. For example, you pay $100,000 with 5% down and the balance due in two years.
If it goes up 10% per year, then they’ve made back 100% before you’re even closed.
Research the Neighborhoods
If the real estate market where you’re buying is active and prices are rising, then it can be very profitable.
Your job will be to do extensive research on the project and the area; the location of the property is imperative.
Benefit of Buying Off-Plan
A practical benefit to buying off-plan property is that if the project does not work out and you refuse to close, the question will become with the developer really go through all the time and expense to attempt to collect from you?
It may become a win-win if you do your real estate homework.