The real estate market in Puerto Vallarta is solidly into recovery and consolidation, and the natural outcome for developers is to bring new projects onto the market.
Notwithstanding a global pandemic, (investors think in decades, not quarters), construction activities are at levels unseen in this market in a long time.
New projects make economic sense for developers and buyers when an active market is in progress. Once again, it is an active market! Some developers are initiating projects on a property they have held in inventory, others are actively buying developable land. It’s a refreshing change after almost 8 years in which few new projects were launched.
It is common to offer preconstruction discounts as an incentive to buyers. Although there are numerous payment plans available, typically the buyer makes a down payment, and then through the course of construction, they make monthly payments, with a final lump sum at delivery. It is a win-win for buyer and seller. The buyer gets a condo secured at a predetermined price and the seller benefits with a cash flow and secured sales.
Investing in a foreign country feels risky to some buyers, so it is important to consider risk management as a part of the buying decision. The trick is to ask the right questions and assess the answers you receive. The fact is that thousands of condos have been successfully purchased under the preconstruction formula. However, there have been a few cases wherein the buyer has ended up unsatisfied for a number of different reasons.
So how do you maximize your opportunity to win in a preconstruction purchase and lower the risk to a minimum?