It's a fact that properties that are not yet built increase in value by the time the construction is complete. So, by placing a small deposit you can wait for property to complete and sell at a large profit.
Here we will go through the concept and a country with strong real estate prices that are increasing and allow you to have up to 300% profit.
Before we look at a good market to buy pre construction lets look at an example of how you buy.
Example:
1) You could for example, buy a $200,000 pre-constructed condo with 20% down payment of $40,000 with an ocean or valley view and excellent facilities.
2) The building if done by a reputable property company sells off the units. Usually it takes about 45 days to sell all the units in the building after that the sale starts.
3) It takes around 2 years for construction to complete.
4) Your condo is making you around a 20% return each year you hold it.
The NET Result
After paying 20% down payment you pay nothing for at least 2 years while the building gets built.
During this time your property goes up in value by around 40% (2 years).
If your condo was valued at $200,000 when you bought it, you have deposited your 20% or $40,000 after 2 years your condo is worth up to $300,000!
Work out the mathematics and you will see these gains are stunning.
Can you do this in reality?
The answer is yes, but you need a strong upward trend with rising demand and Costa Rica offers you such an opportunity.
Consider this a $30,000 home in the popular resort of Jaco is worth as much as $750,000 today and prices continue to rise.
Why?
Quite simply beach front property here is up to 70% less than in Florida and Americans are buying their own slice of paradise, just a 3 hour direct flight from the USA and their buying in record numbers.
The country is also beautiful stable and you can get significant tax advantages when buying and you will see why this method of buying pre construction is so popular.
Leverage
The above way of buying on leverage i.e by only putting down a small deposit is a great way to leverage your money and make some great gains with low risk.
It's becoming more popular than ever to buy beach front property this way and allows investors with small deposits to build wealth quickly.
If you have never leveraged your money on overseas property buying in this way take a closer look and see the gains that can be made and you may be glad you did.
