Updated: Jan 11
Buying a house in presale consists of buying a property in a real estate development (private residential, buildings, housing complexes) or buying an architectural project, it can be a house or an apartment, these are still under construction, but they are already for sale. That is to say, when buying in presale you would buy a house that is not yet finished and ready to move in, but it will be in a determined time.
Many people opt for this purchase option, since the projects being under construction, some may have changes according to the tastes of the client; such as details in facades, pools, kitchens, as well as choosing the type of stones or finishes. This added to the fact that the prices are lower by up to -30% and these increase their value as the work progresses, this guarantees a short term and long term capital gain.
HOW TO INVEST IN PRE-SALE HOMES
Once you have decided on the property you like, it is time to focus on the details with the developer, delivery dates, warranties, options with the finishes and investigate in depth everything related to the developer. From project details to the history of past projects.
1.Review the project plans
It is necessary to review in detail the plans of the project, visualize the measurements of each space with our preferences, since in the renderings the spaces can look different, for this reason it is necessary to review in detail the spaces and finishes with the developer or agent that is supporting you.
2.Down payment of the property
The down payment is the amount that you will have to pay in advance according to the type of property and the forms of payment; normally in Mexico a base of 20 to 30% of the total value of the property is established. This varies depending on the type of mortgage you get or if the property is to be paid in cash. Subsequently the balance will be against the title deeds of the house. In any case, it is not a bad thing to start thinking about this percentage. The down payment is also the first step of the whole process, and it is also seen, in most cases, as the guarantee to be able to set aside the property.
To obtain a mortgage loan, it is prudent to have a clean and debt-free credit history. This will set the tone for defining the financial percentage of the credit that the institution will grant. For this reason, we recommend you consult the credit bureau (free service), which gives visibility to the status of your credit history, to find out if it is convenient to pay off delinquent balances, as well as to improve your credit history.
3.Extra payments to keep in mind
There are some payments that you should take into account before taking the big step. Therefore, we suggest that you set aside between 10 and 20% for additional payments such as property tax, notary procedures and any structural or superficial improvements you wish to make to the chosen space. The property tax is a fee that applies to any real estate property or possession, i.e., houses, apartments, offices, etc. It is payable by all taxpayers who own one or more of these properties. It must be paid annually; generally at the beginning of the year. The total percentage of the Real Estate Acquisition Tax changes depending on the year in this case 2021 and the place where it is located, so the rate to be paid by the taxpayer depends on the place and the value of the property; it is paid at the time of the deed and the responsible party is the one who acquires the property. In summary, we can say that the notarial procedures include the deed (among which are the taxes of the sale of the property), the rights derived from the operation carried out and the notarial fees, these paid 100% by the one who buys.
DOCUMENTATION YOU NEED TO HAVE
According to the Council of the Colegio de Notarios del Distrito Federal, A.C., the following documents are required for the sale of a property:
In case of having acquired the property being married. When the buyer of the property acquires it when being married under the regime of conjugal, legal or co-ownership partnership with his spouse, he must appear this one to the signature of all the documentation relative to the sale and purchase.
2. Paid property tax and water bills for at least the last five years.
at least of the last five years.
3. Electricity or telephone bills for the last two years.
4. Lease contract(s) in case the property is rented.
*Request in the Notary's office several days before the counter deed, a breakdown of the possible expenses or payments to your charge, so that you know them and you are prepared to cover them. Likewise, make sure that your buyer is informed in a timely manner of those that will be paid by him.
DOCUMENTATION IN WRITING
Arrive half an hour in advance in case of unforeseen circumstances.
Participants in the transaction must identify themselves with a valid official photo ID.
Bring with you all the documents mentioned above.
Deliver to the notary all the documents requested
Make payment to the seller of any outstanding balance of the agreed price by cashier's check or bank transfer, you can make this payment from your bank's app.
Advantages of buying in Presale
You invest at a better price. When buying a house in pre-sale you would be paying up to -30% less than the final cost of the house. The percentage will depend on the stage of construction of the real estate project when you make the investment.
Different forms of payment. In the pre-sale of houses you can be granted the facility to pay by monthly installments, or balance against deed, which will give you several payment options.
You choose the project you like the most. This is a great advantage when buying a pre-sale house, since you will not only have the privilege of choosing the real estate project you like the most, but you will also be allowed to make any changes to the distribution of the house so that it is completely to your liking.
Completely new house. It is important to highlight the fact that when you move in you will be the first inhabitant of that house and therefore you will have completely new facilities. And best of all, at a lower price than a new house already finished.
Capital gains. Your investment will generate capital gains during and after the contraction when you have your house finished, its price will increase between 10% and 30% with respect to the initial price. In addition, pre-sale houses generally belong to subdivisions or developments, so, once the whole real estate development is finished, the capital gain of your house will increase even more.
Guarantees. At the end of the construction, the developer and builder will give you guarantees, so if your new house or apartment has any flaws, these guarantees will back you up.
Many people opt for this purchase option, since the projects being under construction, some may have changes according to the tastes of the client and most can be purchased with mortgage loans and Infonavit or fovissste. visit our list of homes in presale.