For those who know Puerto Vallarta well, it is easy to see that big changes have occurred in the last 5 to 10 years, especially in the downtown area and Old Town neighborhoods. Over the last couple of years, more and more condominium buildings have been popping up as developers see the demand increasing as more people decide to make Puerto Vallarta home. The construction of new buildings has definitely altered the quaint feel of Old Town, and many people have mixed feelings about how it has changed the ambiance and authentic charm. However, with more and more units under construction, it is clear that change is here to stay. Now the question is, is it risky to buy pre-construction Mexican real estate? Continue reading below to learn more about the Mexican real estate purchase process and tips to avoid a real estate pre-construction disaster.
Pre-Construction Mexican Real Estate: High Risk
All it takes is a stroll through Old Town Vallarta to see the many new condo buildings going up and those still in construction. Most have a modern, high end feel with attractive common areas, rooftop infinity pools, gyms, and fine finishes. These high-end touches are very attractive for buyers wanting to experience the Mexican lifestyle, while still enjoying luxurious amenities and avoid the maintenance and upkeep issues older, out of date buildings generally entail. However, one major issue with buying a pre-construction Mexican real estate property is that it involves a certain element of risk because the product is well, unfinished. More than once a Mexican real estate property has come across issues and construction has halted halfway or partway through development, leaving investors with a sour taste in their mouth, not to mention an empty wallet. Buying pre-construction is a risk anywhere, but there are tips you can take to minimize the chance that you will become a victim to a real estate scam or a dishonest developer.
Real Estate Developer Delays
The most important tip when buying Mexican real estate is to make sure you select a reputable developer. The best way to assess their qualifications is to only buy from developers who have already proven their ability to deliver quality construction on another property or properties and delivered the finished product in a timely fashion. Always ask for references and do your research to verify in fact what they say is true. In order to protect yourself, it is always better to do your homework ahead of time before committing to a pre-construction Mexican real estate property, no matter how many incentives or discounts they may be offering. As with any new construction, delays with Mexican real estate are not uncommon. Many Mexican real estate developers will include a 3 to 6-month contingency clause past the due date in order to give themselves a buffer. Be aware ahead of time that your unit may not be ready by the due date, and make your plans accordingly to prevent any unnecessary stress or angst. Also, try to agree upon the smallest down payment possible when dealing with pre-construction. That way, your financial investment is minimal and you can finish paying for it once you actually have been given the keys to the finished property.
Another great way to avoid having a Mexican real estate property not finished is to only buy the unit once the property is actually completed. However, you will likely miss out on the discounts offered in pre-construction but it may be worth it for the peace of mind.
Avoid Risk – Buy Completed Real Estate in Mexico
A good way to avoid the risk that comes with pre-construction real estate is to purchase a unit from a property that is already finished. Although you will not be eligible for incentives, you also avoid the unwanted risks and delays that could occur. A top real estate investment option in Mexico that is move-in ready is the award-winning Villa La Estancia in Nuevo Vallarta. Constructed with quality materials, Villa La Estancia in Nuevo Vallarta offers luxurious units with high-end finishes and elegant decor as well as beautifully landscaped grounds. Villa La Estancia is a solid real estate investment if you want high quality beachfront real estate in Mexico. In addition to their amazing and spacious private beachfront residences, Villa La Estancia is a condo-hotel so you also have access to professional and courteous staff twenty-four hours a day. It is a great bonus to have help with any reservations, tours or transportation arrangements that you may need when you are staying in your home. Visit Villa La Estancia’s website today at https://rivieranayarit.villalaestancia.com/ to learn more about all the amazing amenities and services available at this award-winning property. Sounds like a win-win to me!
We hope these tips and information on pre-construction Mexican real estate was helpful.