Buying Pre-construction in Puerto Vallarta
Buying Pre-construction in Puerto Vallarta is not the same as buying a property that already exists and is simply going to a new owner. No. You are buying a property that does not yet exist. You are taking a risk that the developer will deliver as promised in a contract. Here is how it works:
You wire funds directly to the developer. This is done so that the developer can use your money to continue building your unit. And you wait to get your unit. No question you are at risk here. However, if you do your homework you are at less risk than you think.
Learn who the developer is.
This is a good first step. The developer should have some sort of track record of completing a project and delivering on time. It is important to also know and see the work that the developer has done in the past. The way to do this is to ask the sales representative outright who is the developer and what have they done to date. Usually, the developer has a website set up for the project. But, don´t trust those as anyone can build a website. A developer has to be authenticated by AMPI and be uploaded to the Flex MLS system by a sales representative.
Learn who the sales company or sales representative is.
This will help you decide how trustworthy the project is. The sales representative should be a member of AMPI (Asociación Mexicana de Profesionales Inmobiliarios A.C). AMPI is the National Association of Real Estate Professionals that have, since 1956, gathered under laws and codes of ethics and conduct to create a reliable, trustworthy, and efficient real estate environment in Mexico. You can find out if the representative is a member by going to the AMPI website under AMPI Professionals.
Advantages of buying pre-construction.
The truth is that there are advantages to buying pre-construction. You are buying a new property that, by law, comes with a warranty for one (1) year after you move in and if you decide at the early stage of construction you can get some really good discounts. Plus getting in early on a project means you can pick and choose your unit, parking space, and storage units. Sometimes you can even customize how your unit is built with the approval of the developer.
Disadvantages of buying pre-construction in puerto vallarta.
You risk your money and you risk not getting your property delivered as promised. Again, this goes back to trusting who you are working with. One thing you can do to safeguard your money is to ask to do an escrow account. Sometimes the developer allows money to be placed into escrow (a third-party bank that holds the money to be wired once conditions are met). This is mostly done when the project is complete or close to completion. You need cash to buy pre-construction. No lender will loan you money to buy something that does not have a deed. And, it takes a few months after a project is complete to get a deed. Although it can be done you must have a good plan with the loan company you are using.
Closing Costs and fees.
It is important to keep in mind that closing costs and normal closing fees apply just as if you were buying an existing property. This final step of getting your deed is the most important step. For closing fees please review the fees table in the buying process. Usually, the developer has a plan set up with a notary for you to get your deed. But, keep in mind that closing costs and the process is the same as buying an existing condo or house.
Ask all questions that come to mind. Get an idea of how you will live comfortably in this new project. Ask how much you will pay for HOA and who will manage the building. Make sure you have good contact information.