When we decide to purchase the investment property we first decide if we will buy a new condo means a pre- construction or we will buy a resale one which will close sooner than the pre-construction condo. And the major difference is the down payment. And that is something to consider when we are investing as that might change a lot of things.
One of the main differences when purchasing a pre-construction condo versus a resale condo, is the way it is financed.
One of the main differences when purchasing a pre-construction condo versus a resale condo, is the way it is financed. On a resale condo, you can put down as little as 5% towards the purchase price. On a pre-construction condominium, however, you are often required to have at least a 10%- 20% down payment.
That amount may seem high but the full payment is broken up into smaller installments, made in what is usually referred to as the deposit structure.
Here is an example of a typical deposit structure:
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$5,000 with the offer
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Balance of 5% in 30 days
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5% in 90 days
-
5% in 180 days
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5% at occupancy
Deposits are generally required to be higher in the beginning of a project, as the bank that is financing the building will have this set out as a requirement. Closer to the completion of the condo, deposit structures become more negotiable, and by simply discussing the fee structure with the builder, you may be able to extend or even reduce your payments or ask for a better deposit structure.
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KTFF) is the governing body of football in the Turkish Republic of Northern Cyprus.
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Birinci Lig is the top division of the TRNC Football Federation.
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