What if you decided to participate in the Caribbean real estate market, as a real estate investor, by buying a new off-plan property and locking the price of the property? In this article we will discuss the process of buying a pre-construction condo in Sint Maarten & Saint Martin, going through the advantages, disadvantages, and the buying process.
The term “condo” is the abbreviation of an individual unit in a condominium. In general, this term is used a lot in the United States and Canada. When you buy a condo, you own part of the condominium, the interior of the condo you have purchased, and you will be a member of the association of owners who take care of common areas (corridor, lift, outdoor areas, etc.). As an owner and like any member of the association, you will be liable for a share of the condominium fees….
A pre-construction condo is an individual unit that is part of a condominium that is not yet in existence or under construction. Are you planning to make an investment in Sint Maarten & Saint Martin? At 4U Real Estate, we specialize in the process of supporting and purchasing a pre-construction condo.
Did you know that buying a pre-construction condo in Sint Maarten & Saint Martin offers you many advantages? Indeed, buying a condo before the start of construction in the real estate project will allow you to select the best units! You will be able to select first-rate pre-construction condos offering privileged views and you may even be able to make small changes. We work closely with real estate developers in Sint Maarten & Saint Martin to provide you with floor plans, visuals, and a sales center to help you visualize your condo off-plan. The main advantage of investing in a real estate development project is to lock the sale price of the condo! Construction prices may increase during the construction process, the sale price will remain fixed and will not be subject to inflation. In addition, if a mortgage is used, there will be no loan repayment before the end of construction. It will also allow you to save during construction to make a larger down payment so that you can reduce repayment costs once you start paying.
Buying a pre-construction condo offers many advantages to the buyer, you will find some reasons below:
The average price of a pre-construction condo in Sint Maarten & Saint Martin is often lower than buying a traditional condo, making them more affordable, and allowing you to buy an off-plan unit, bigger, better placed, than a traditional condo. Our real estate development and construction projects are always located in prime locations and close to all necessary amenities. Life in the Caribbean is a luxury dreamed of by many couples, families and retirees who wish to live in the tropical climate and at the pace of the Caribbean.
The sale price of a pre-construction condo is firm and irrevocable from the moment you sign the reservation contract. This means that the price will not change, even if there is an increase in construction prices or the value of the condo during construction. In principle, the value of the pre-construction unit increases as the construction work progresses.
Building standards change over time. This means that the newer the building, the better the quality of construction! New condos in pre-construction will be more efficient, and recent, which will significantly reduce the costs of maintenance and possible repairs.
When you are among the first buyers in a real estate development and construction project and you buy your pre-construction condo early or even before the start of construction, you will have the possibility of choosing the pre-construction condos with the best location in the real estate project.
Do you need a little more time to build up your savings? When you buy a condo in pre-construction, you pay it according to the progress of the work, and, generally, the deadline is spread between 15 and 18 months. This will allow you more time to organize your finances, while locking in the market value of the condo. It is advisable to contact a real estate agent specializing in real estate development, to accompany you and explain the process to you. The 4U Real Estate Agency specializes in real estate development and construction!
A condominium offers owners excellent value and excellent security. In the majority of real estate development projects in Sint Maarten & Saint Martin, you will enjoy high-end services, including management service, concierge, swimming pools, Jacuzzis, exceptional views and wellness facilities in the real estate project. Condominium fees are payable annually, quarterly, monthly, and cover certain maintenance and other ongoing costs, including maintenance and cleaning of the common areas of the condominium. A forecast will be made by the property developer in partnership with our real estate agency before the start of construction, to provide the necessary information to the buyer.
As with any investment in real estate in Saint Martin & Sint Maarten or purchase in real estate in general, it is important to consider the advantages, but also to be aware of the risks to watch out for in real estate developments and construction of a condominium. As you cannot visualize your condo yet, it is a good idea to visit our real estate agency where we could help you visualize the real estate development project in Sint Maarten & Saint Martin in the Caribbean. Good support will allow you to reduce the risks associated with this real estate investment.
The two main risks to which the buyer is exposed by investing in a pre-construction condo:
Construction deadlines are the main concern in real estate projects for sale in pre-construction. As with any major real estate development project, complications can arise, and timelines can be difficult. The best way to handle this is to work with an experienced real estate agent and developer whose expertise and experience will greatly reduce this risk. With 4U Real Estate, you are in good hands!
It is very rare, but some real estate agents and property developers’ market real estate development and construction projects before having obtained all the necessary authorizations for the completion of the project. This can happen during pre-sales. The 4U Real Estate Agency ensures that all the necessary authorizations have been obtained by the real estate developer for the completion of the real estate project. When we market a condominium in pre-construction this uncertainty is mitigated and you are assured of its reliability, we also inform throughout the course of the progress of the real estate development project.
Is this your first real estate investment in a pre-construction condo? Does the process seem intimidating? Do not worry at 4U Real Estate we can guide you through the process of buying a real estate development and construction project in Sint Maarten & Saint Martin in the Caribbean.
Before you start looking for a pre-construction condo in the Caribbean, you will need to check your financial capacity. You will be able to take out a mortgage for this purchase, but you must nevertheless have a stable financial situation.
When your finances are ready, the fun part will begin! With the help of your real estate agent and advisor from our real estate agency, you will review the floor plans, prices, and availability of pre-construction condos in Sint Maarten & Saint Martin.
We recommend coming as early as possible! Indeed, you would have the possibility of making modifications, subject to the agreement of the real estate developer, for that it will be necessary to arrive at the very beginning of the real estate project. Once the construction has passed a certain stage, no modifications can be made. It will then be necessary to make sure you discuss with real estate agent and adviser of our real estate agency. Once you have considered all the options and made your selection and examined all the options, it will be necessary to lock your condo in pre-construction!
For your peace of mind, we recommend that you go to our sales office so that we can explain the reservation contract to you before signing.
The purchase of a condo in pre-construction in Sint Maarten & Saint Martin, requires payment according to the progress of the work, generally the funds are called in installments.
After signing your reservation contract, you can relax and follow the progress of the real estate project. Our real estate agency takes care of informing buyers at every stage of construction through regular communication on behalf of the real estate developer once construction has begun.
We will also give you access to all the floor plans and all the documents concerning the real estate development project. You can also, by appointment, come and see the progress of the construction directly on the construction site.
The construction crews will review your entire condo with you after construction to make sure it is in order. You will have the opportunity to walk around your condo and note all the elements that you would like to have examined. Your real estate agent will also be present to accompany you in the minutes for the pre-closing inspection.
The closing process is quick and efficient for a pre-construction condo. You will simply have to pay the closing costs which generally represent between 5% and 6% of the purchase price. Then we will make an appointment with the notary for the signing of the title deed.
We have arrived there; the move is the end of the adventure! All you must do is pack your things and settle in!
Its good! You know the process of buying a pre-construction condo, but also the pros and cons, so here is a list of questions you should ask yourself when planning your purchase:
Does the pre-construction condominium location represent an opportunity and potential for your capital growth?
Can I trust the real estate agent? Does he know the real estate project perfectly? Does he have the skills to explain to me how the purchase of a pre-construction condo works? Is he experienced in this area? Does the real estate agent have a sales mandate?
Is the project developer experienced and reputable?
What is the construction time?
What are the monthly condominium charges after construction?
A real estate agent, or a real estate agency specialized in the field of real estate development and construction will allow you to have full knowledge of the process of buying a condo in pre-construction, but also to invest in a reliable real estate project.
Making a real estate investment in a pre-construction condo, with 4U Real Estate, is the most advantageous solution for you!