Which is which: Choosing between Under-Construction vs. Ready-to-Move Condominium

With the new lifestyle and living trends, condominium living has been a hit, especially among the younger generations. Condos allow the luxury of living in a house or an apartment, minus the pressure of maintaining lawns and backyards. While condos have become the go-to property investment, it is best for potential investors should know the two popular condo choices: Under-Construction or Ready-to-Move Condominium.

Generally, both types of condominiums share the same terms and follow the exact construction and structure terms. However, each investor must understand that there could be a better option for them considering their business goals and personal interests. 

Consider checking the advantages and disadvantages of the two popular condo types if you are on to your condo purchase.

Under-Construction Condominium

One strategy developers do when selling condo projects is through off-plan. Through this, potential investors can reserve units and wait until the project completion. This time, acquired condo units may be ready for turnover for ownership or resale. Choosing this condo type can have both good and downsides.

The Good

As a rule, investors who buy before project completion get the units at a lower price. Such is generally due to the project’s ongoing construction state. The great thing about this is how property values may increase in the future. Hence,  investors reap higher revenues against the money they have invested into the property.

Another advantage is how these units can be flexible and modified. Since investors have already owned part of the bought property, developers may still integrate some touch, especially to adapt to the ever-changing market trends. Investors also receive “snag lists” where construction aspects can be fixed and improved before their actual debut in the real estate market.

The Bad

Remember that even if t this property type promises revenue, everything is still in theory. This option is for those risk-takers who are aware of unprecedented situations that might affect the project as a whole. Think of how the current pandemic forced developers to complete their ongoing condo construction projects. Of course, this doesn’t halt the project altogether. However, it suggests that property revenue may not be met as scheduled, and profit losses could be possible.

Ready-to-Move Condominium

The other option for condo purchase is ready-to-move condominiums. As the name suggests, these properties are all set and may be sold as finished projects, and are ready for residential and other purposes. While they could be a convenient option, there might also be other factors to consider.

The Good

The most vital advantage is the fact that the property is all set and ready! This alone serves investors from construction risks and other schedule delays since construction is fully completed. 

Suppose your goal is to have your condo units for resale. Potential buyers are treated with an actual or at least virtual experience. Such can serve as an effective marketing tool to lure investors and property enthusiasts alike.

The Bad

You can expect that condo types like this are sold at a more pricey rate. Since everything has also been set, there’s also little to no room for input in case modifications are needed. If pursued, however, it might entail additional cost and other potential risks.

As these two types of condo properties have strong and weak sides, The best way one can go is to always go back to what it is you need and how capacitated you are to engage in such an undertaking. The choice lies in you.