Drive through the streets of the metro or simply watch TV. Chances are you’ve seen the ads, selling you the idea of owning a condo. The terms are irresistible: cut-rate prices, minimal down payment and interest, and a location to kill for. And then there’s that word: pre-selling. You pull a quick research and depending on how you’re making money, either it’s a dirty word or a deal you’re willing to shoot for. But first, you do your homework.
In real estate, a pre-selling project may be a property or development being sold before its completion, during its construction, or while still in the planning stages. Hence, the variant terms such as pre-construction and off-the-plan. These mean that the property is still non-existent and the developer is yet to break ground for the project. At this point, it seems that opting to buy a pre-selling condo would be like throwing money into a hole yet to be dug. The question really is not whether to buy or not to buy a pre-selling condo, but what are the risks? What makes people take those risks? What makes pre-selling properties attractive and even downright seductive?