Purchasing property, especially pre-construction

I would want to see the permits for all the infrastructure, such as water and waste, electrical, phone and internet connections. Many of these issues, as well as clear title to the property can be handled by a competent real estate attorney.
I am afraid I have become somewhat jaded, and see waaaay to many incomplete, abandoned  properties turning into bone yards.
I think when all is said and done, I would want to see COMPLETED properties/ communities the builders have done. If the project isn't backed by someone with a strong track record, I'd walk away, no matter how pretty the hand outs are.
Sadly, much of the draw is a " Founders " discount. Many people are lured by that " discount " thinking they would be throwing money away by not jumping in pre build. Be very leery of that thinking. It's easy to be pulled in.
My 2 cents, and worth every penny!
Stay Well

Thanks Neil. As alway, good stuff.

I totally agree about not buying pre-construction, but that often gets promoted by developers and even well meaning people, in this forum. Some people get really interested. I felt that that saying not to buy would not be that effective. So, I came up with this list and really appreciate your additions. But, you have given me a forum (no pun intended) to confirm what you are saying: buying pre construction is not a very good gamble. Danger Will Rogers, Danger!!!

Laughing, do you remember that corny show? I laugh every time I think of it.

Firstly Joseph,
I have been kinda busy as of late, and missed the thread that I think must have prompted you to start this thread. I was most interested to see that you get a grand knocked off for 100% down payment, BUT 2 grand for a referral? Sumpin' is telling Will to be beware of DANGER!!!
I only added a bit to your well thought out post. You have the ability to really gather thoughts and put them down in a pretty succinct way.
Now.... I'm going to get drunk, as I lost everything in the US.
< smirk >
Take Care,
Neil
Ps. 100% down! Really?????

Wonderful advice gentleman.

Would add to make sure you use an independent lawyer, and not one associated with the builder/developer. Logical, but more often than not the developers will try to get an individual to use their lawyer, and more often than not the individual does. Major conflict of interest there.

As well as checking all the permits, be absolutely sure the developer owns all the land free, and clear. Be sure there is no disputes, taxes are paid, etc.

Check the water. Has there been a study done, and will there be plenty to support all the homes, and buildings in the future?

I see one project is offering medical care on site. Can they give you the names of the medical providers they are talking to, and who have agreed to operate on the premise?

Just be thorough, and question everything. In general if things are legit, the person/persons will gladly and proudly give you all the information you ask for. If their not, then there will always be some excuse given, and all they will talk about is the dream and vision with no facts to verify anything they say.

ZenSPIKE wrote:

Now.... I'm going to get drunk, as I lost everything in the US.

Well, I was a bit too direct as I often am, and I think she meant well. But, if you knew me, you would have to laugh at the drunk part. As they say, I am a three beer man: drink one, spill one, and give one away.

Cheers.

Thanks J600rr. The point about the separate lawyer is really critical. This is great stuff and I hope it will help a lot of people.

Unfortunately Joseph human nature is human nature, and there is no shortage of people who base their life on whims, and wishes, rather than logic, and common sense.

Anyhow I just base my advise on having owned, and still owning properties in different countries.

This may not be necessarily in accordance to this thread, but may be worth mentioning that often you can buy something that's already established with a good track record for much less than pre-construction, or can generally can find a nice piece of land, and build your own place for much less than these pre construction developments want. Don't worry too much about not having all the amenities these developments promote. Pretty good chance they won't have them either.

j600rr wrote:

. This may not be necessarily in accordance to this thread, but may be worth mentioning that often you can buy something that's already established with a good track record for much less than pre-construction, or can generally can find a nice piece of land, and build your own place for much less than these pre construction developments want. Don't worry too much about not having all the amenities these developments promote. Pretty good chance they won't have them either.

No, your comment is good and the argument you make is part of this. One needs to ask, what advantage does pre construction have over existing houses? In many situations, the answer is none. In fact, pre construction only adds a great deal more risk. This is similar with building your own, although, I would add that construction times are slower here, and construction techniques and materials are different. Building a house will take patience, but can save a lot of money.

Joe would you like to hook up together as American advisers? I am tri-lingual and can even read & write inglis.
No kidding, most data most folks require is farmable and I'm certain after 40 years of defense industry support and another bunch of years with various agencies coupled with your knack for copious detailing, why not have some fun and make a small amount of dollars aiding ex pats from USA & Europe?
Sounds ridiculous but sleep on it.
I have a complete pro office arrangement including 1st rate communication equipment and a fairly good people network at home. I believe you may add some similar support functions to the party.
How's this for an on air proposal? Could be fun and making just enough to cover overheads and buy the beer. Being magnanomous type guys we could eveb handle some pro bono's. Target date mid March 2014. You're in Loja and us in Cuenca but renting makes anyhting optional
Tim

Good points about building a house Joseph. Not for the faint of heart, or people with little patience, and that subject probably deserves it's own thread on the do's and dont's.

Back to this thread, and the subject. It hasn't been mentioned, but people need to take and honestly evaluate what exactly they want, and more importantly their financial situation. Yes the thought of moving to a new country is exciting, and should be, but one needs to take an objective look, and consider the risks as well. This thread is intended to help people not make mistakes, and not lose money, but what few will mention is that if you do get taken or scammed, or don't make sure you did everything by the book and own whatever completely legally, then there is very, very little chance you will ever get your money back. Am not trying to dissuade anyone from moving, or buying a place, but if your honest, and evaluate the possibilities there is an unavoidable fact that you could never see the money you have invested in the country again. Developers, land owners, real estate agents aren't giving you your money back once you give it to them (more often than not). So just have a healthy respect and judge your finances accordingly with what you can, and can't lose.

Absolutely nothing wrong with renting for 6 months or a year, and learning who's who, and how things work, and if you can't afford to do that, do you really think you can afford to put a large sum of money down on some unknown?