Buy Pre-Construction in Puerto Vallarta and Riviera Nayarit

Buy Pre-Construction in Puerto Vallarta and Riviera Nayarit

The real estate market is thriving throughout the Banderas Bay area. This is a wonderful time to consider purchasing Pre-Construction. Developers are bringing new projects to the area and expanding to surrounding areas throughout Jalisco, Nayarit, Compostela and beyond. North and south of Vallarta, new projects abound.
Banderas Bay has weathered the global pandemic (investors think in decades, not years or parts of years) and construction activities are at levels unseen and unheard of in the Pre-Construction market for quite some time.
New projects make economic sense for developers and buyers when an active market is in progress. Some developers are starting projects on property they have had in inventory, others are actively purchasing developable land.
It’s a refreshing change after almost eight years in which few new projects were released. It is common for reputable developers to offer pre-construction discounts as an incentive to buyers.
Although there are numerous payment plans available, typically… the buyer makes an initial payment, and then during the course of construction, they make monthly payments, with the final amount due payable at closing. It is a win-win situation for the buyer and the seller.
Investing in a foreign country feels risky to some buyers, so it is important to consider risk management as part of the purchasing decision. The key factor is asking the right questions and evaluating the answers you receive.
AMPI strongly suggests that you do as much due diligence as possible throughout the process. Please note that thousands of condos have been successfully purchased under the Pre-Construction formula. However, there have been some cases where the buyer has ended up dissatisfied for a variety of reasons.
Your AMPI real estate professional can provide guidance and advice to avoid these situations. So how do you maximize your opportunity for a successful negotiation on a Pre-Construction purchase and keep your financial risk to a minimum? Here are eight steps to maximize your success when purchasing Pre-Construction and reduce your risk:

8 Steps to Maximize Your Success When Purchasing Pre-Construction and Reduce Your Risk

Buying a pre-construction property can be an excellent investment, but it can also present some risks. Here are eight steps you can follow to maximize your success and minimize your risk when purchasing a pre-construction property:

1. Look for a development listed in the AMPI agency. If the project is listed through FlexMLS as a Pre-Construction project, it will have already met a rigorous standard of scrutiny and verification. If it is not listed as a development through FlexMLS, choose an AMPI affiliated agent to help you vet the development. Request the agent’s credentials and references and ask your AMPI real estate professional to verify this with you.
2. Do Legal Due Diligence: Confirm that the Seller is the legal owner of the property or has a legal contract of sale or transfer of ownership of the property. Insist on seeing the Deed of the property on which the construction will take place.
3. Building Permits: Confirm that the seller has current/paid building permits for the contemplated project. Also make sure that the developer has contracts in place, or at least provisions made, for all required services, such as drinking water and sanitation, electricity, internet connectivity, etc.
4. Confirm the reputation of the developer. Ask for references from previous satisfied clients and verify them.
5. The same goes for the master broker/marketing entity. Confirms its history, reputation and experience in Pre-Construction projects.
6. If the project is located in or adjacent to the Federal Zone (this generally means waterfront), make sure the seller has an appropriate concession that allows for the contemplated project. As part of this, an environmental impact study is required. Ask to see this.
7. Finally, make sure you are satisfied with the sales agent you are dealing with directly. Do they understand and can explain to you the legal structure on which the development is based?
8. Have the sales contract completely reviewed and explained by a competent person. This can be your AMPI real estate professional, although you should also consider yourself a real estate attorney.

At the end of the day, the developer’s reputation (for having successfully delivered projects of a similar scope in the same region) and your AMPI real estate professional’s references (from previous clients satisfied with Pre-Construction projects) will combine to give you the security you are looking for.