Buying Pre Construction &New Developments in Puerto Vallarta, Nuevo, Bucerias & Punta Mita. Tips & Advice.

Buying and investing in a pre-construction or New development condominium means you can get an incredible return on your investment. Pre-construction projects and condominium developments are sweeping Puerto Vallarta, Riviera Nayarit and Bucerias – and with good reason! Centrally located, incredible investment opportunities, discounts, financing, and some of the best views the Banderas Bay has to offer, make buying pre-construction one of the most attractive options in Puerto Vallarta Real Estate. New developments with condos for sale in Bucerias or Vallarta may be the best option for you, but you’ll need to consider to following pros & cons:

Pro’s

Advantages of buying pre-construction.

The truth is that there are advantages to buying pre-construction. You are buying NEW PROPERTY that, by law, comes with a warranty for one (1) year after you move in and if you decide at the early stage of construction you can get some really good discounts. Plus getting in early on a project means you can pick and choose your unit, parking space, and storage units. 

• New Construction:  Your Puerto Vallarta condo will not require any renovations or upgrades and will be move-in ready upon completion.

• Low Maintenance:  Developers offer warranties of different lengths ensuring that there are no unforeseen maintenance problems with your condo in Puerto Vallarta.

• Save money because they are typically priced lower during pre-construction.

• Often there is limited storage or parking spots in a development. So getting in early and securing a parking spot or storage area, while available is a advantage when it come time to rent or selling

• The builder may allow you to make a series of payments over time in order to avoid getting a formal mortgage from the bank. For example, an initial deposit may cost around 25% percent of the purchase price, and then you can make installment payments at a negotiated price.



Con’s

• You will have to make a decision based on floor plan sketches and building mock-ups, rather than a completed product.

• The construction of some of the amenities may still be underway, even when after your unit has been formally delivered and signed over.

• Before the building can become registered as a condominium association, the construction must be completely finished. Buyers have to wait for this in order to get their official deed (escritura).

• Yes, buying a pre-construction has some risk. There are usually no guarantees a project will get finished, but to mitigate the risk make sure to go with a local developer that has a great success record. You can also set a Milestone Payment Schedule in the sales contract to protect yourself by making sure the developer meets certain deadlines.

• You wire funds directly to the developer. This is done so that the developer can use your money to continue building your unit. And you wait to get your unit. No question you are at risk here. Do your homework.

Lessening the Risk

The vast majority of developers in Puerto Vallarta are reputable and complete their projects as planned, but there is still some degree of faith needed when purchasing pre-construction. We highly recommend only trusting developers who have a lot of previous experience and have built in the area before. Also, make sure there is a provision in the contract to protect yourself, making sure the developer meets certain deadlines.

ALWAYS, have a lawyer go over your contract. If a developer defaults for whatever reason, legal actions could be taken, but that would of course come with additional costs. This is why we always work with a legal team to review all paperwork from start to finish.

While this is all a little scary, it is in no way meant to discourage buyers from investing in pre-construction. Consider it similar to cautionary disclaimers you may read when investing in the stock market. Greater risk almost always offers the potential of greater gain. As a purchaser of pre-construction, you should know and acknowledge this risk before deciding to take that plunge.

Only look at properties on Flex mls.

Some developers for new construction won’t list the units on FlexMLS because they simply want to hire their own sales staff and avoid more people in the mix (realtors) and more paperwork. This is a warning sign. It won’t cost you any extra to work through a realtor on an AMPI approved project. Having this stamp of approval is not a guarantee of no risk, but it does insure that the developer has at least the correct ownership, permits, and plans in order to begin construction.

*** We include in our service a FREE NO CHARGE to you legal team. Who will ask for all the paperwork and review all contracts. This is something we do for our clients to help mitigate the risk.

You should ask the following questions before purchasing pre-construction real estate in Bucerias and Puerto Vallarta:

• Is the developer new to the area? Do they have a long-standing reputation in town?

• Is it the developer’s first big project in the area?

• Did they deliver on time on their previous developments?

• Is there a provision in the contract to protect owners, making sure the developer meets certain deadlines?

• If these deadlines are not met, do buyers have the option to rescind and get a refund?

Final thoughts.

Buying and investing in a pre-construction means you get an incredible return on investment. By the time the keys are delivered, the property value usually will increased 15% give or take, making for one of the biggest perks of buying pre-construction.

When looking to invest in Real Estate, it can be difficult to know exactly which kind of property will be the right investment for you.

 Pre-construction can offer buyers an unparalleled opportunity to invest in Puerto Vallarta and area at an affordable cost. Real Estate prices will only continue to increase as the market is getting hotter year after year in the Bay of Banderas. Be smart, do your research, and work with a professional. Invest in Puerto Vallarta, Bucerias or Riviera Nayarit, with the steps necessary to secure a property you love, with the least risk possible. Contact us today if you have any question.