Differences Between Buying Resale And Pre-Construction Condos In The Riviera Maya
Are you in the market for a condo in Mexico’s highly-desired Riviera Maya?
If you answered yes, your next thought might be “Well, is it better to buy resale or property
We are here to help provide insight into this commonly asked question. Let’s take a look
at some of the pros and cons together.
Purchasing a Resale Property
This is the most simple and direct way to purchase a home in Mexico.
Here are some of the reasons why:
- You're able to see what you’re buying. The property has been built, so you won’t have
to imagine what it looks like.
- You won’t have to wait long to move in since the condo is yours upon closing.
Along with the upsides come a few disadvantages to consider:
- The unit could've been lived in for many years, which means renovations could be required.
- Renovations could cost you more money than you wanted to spend.
If your desired home is in a popular building, you may end up in a bidding war. Entering
a bidding war could mean submitting a bid for more than your original budget.
With the growing popularity of the Riviera Maya and the number of homes under development
there, considering this type of purchase is very common.
Buying a home during pre-construction has some advantages; such as:
- Being the first owner of the unit allows you to make customized choices, including flooring,
bathroom finishes, cabinetry, appliances, and others amenities.
- Lower pricing because homes are typically priced lower during pre-construction due to the
risk of project delays or being called off altogether.
- A possibility of making installment payments. The builder may allow you to make a series
of payments over time. For instance, an initial deposit may cost around 20 – 30 percent
of the purchase price. From there, you can make installment payments at a negotiated price
providing more time to gain access to all the funds needed to pay off the remaining amount owed.
Now, let’s cover the disadvantages of buying pre-construction:
- Buying during pre-construction tends to be based on floor plan sketches and building
mock-ups, rather than a completed product.
- The construction of the building amenities may still be underway, even when your unit is
complete and move-in ready.
- Before the building can officially become registered as a condominium corporation,
construction must be complete. Until this time, the buyer cannot record the escritura,
or deed, which evidences the buyer as the legal owner.
- There are no guarantees. A condo building can take several years to complete. If the builder
doesn’t sell enough units to finish construction, the project gets halted indefinitely.
After reading through these details, we hope you have the information needed to answer the question posed at the beginning of this article. If you need to speak with an expert who can give further advice, we suggest consulting a trusted bilingual real estate attorney and a reputable real estate firm based in Mexico to assist you during the decision process.