The single most common investor question in DR

Every foreign investor asks this within the first three calls. The answer depends on six factors: developer track record, timeline pressure, financing structure, market direction, your renovation tolerance, and your insurance against bad outcomes. Here's the honest comparison.

What pre-construction offers

• 20-30% discount to projected delivery value. Sometimes more.
• Choice of unit, floor, view, layout.
• Brand new construction with modern systems.
• Custom finishes possible on early phases.
• Payment in installments (typically 30% during construction, 70% at delivery).

What pre-construction costs

• Risk of developer non-completion (real, especially with newer developers)
• Risk of timeline slippage (most DR pre-construction delivers 6-18 months late)
• Risk of as-built differing from renderings (small claims to major)
• Tied-up capital during construction with no rental income
• Less negotiating power on price in hot markets

What resale offers

• Immediate possession and immediate rental income
• Verified construction quality (you walk through the actual unit)
• Established HOA, known fees, known building dynamics
• Negotiating leverage based on the seller's motivation
• No timeline risk

What resale costs

• Older construction (depending on age, 5-30+ years)
• Potentially outdated finishes requiring renovation
• Existing wear and tear
• Less inventory in many premium locations
• Selling-side broker commission built into the asking price (5-6%)

When pre-construction wins

The math typically favors pre-construction when:

• The developer has 3+ completed projects on time
• The market is appreciating 8%+ annually (rare but happens)
• You can wait 18-30 months for delivery without rental income
• The project is genuinely 20%+ below delivery comparables
• You have liquidity to absorb a 6-month timeline slip

When resale wins

Resale typically wins when:

• You need rental income within 90 days
• The market is flat or correcting
• Existing inventory is at 8-15% below replacement cost
• You want certainty over upside
• Your tolerance for project management is low

The hybrid we sometimes recommend

Buy resale in a CONFOTUR building during its 15-year exemption window. You get most of the tax benefit of pre-construction without the construction risk.

What we evaluate for clients

For every pre-construction we recommend, we run a 7-point developer audit (track record, capital structure, fiduciary escrow, permits, current construction site, current owner references, contract terms). We've turned down 60% of developer projects that have asked us to promote them. The 40% we work with have a 95%+ delivery track record on the projects we've placed buyers into.

If you're choosing between specific pre-construction and resale options, send us both. We'll model 5-year IRR for each and tell you which we'd buy ourselves.