Off the plan real estate investments are basically investing in projects in their very earliest stages; the land is purchased, some basic designs are just beginning to take shape, and perhaps the developer has begun to apply for necessary permits. No concrete progress has been made, however. This kind of investment can offer excellent returns, but also requires more care and has several points to consider.
With Mexico’s solid tourism growth and thriving economy in general, there are many new real estate and tourism projects worth consideration for early investment. The fact that there is less professional data available on the Mexico real estate market means that opportunities like this are not all seized by larger investors, leaving more off-the-plan opportunities to be discovered by smaller-scale, individual investors.
1. Potential for Higher Return on Investment
At this point, developers are really just getting the ball rolling. They are simply looking for the funds to begin the project and cover basic expenses, or perhaps to gain a loan from the bank. The developer knows that they will see the more significant income (and profit) when plans are 100% finalized and construction has begun. For this reason, they will offer the lowest prices at this point. This option, then, offers the greatest difference between the initial investment and the future value of the property. Even in comparison to the final sale prices of individual units, an off-the-plan investment will offer a considerable margin of increase – in all cases, greater than purchases later on in the project when the developer has raised prices.
At Gay Realty Watch, we look for news to share with you about the gay real estate market – both lgbt real estate news and news specific to gay and lesbian real estate meccas.
If you have a gay real estate story that you’d like to share with us, contact us at firstname.lastname@example.org