If you’re unfamiliar, assignment condos are condominium properties that are still under pre-construction which basically means there’s no physical property yet. Apart from that, since there are no documents that indicate registration of the property, the title is not transferable as well. However, you can still purchase one through a contract in which you can technically own a condo unit for future use.
Now, many people wonder whether it’s practical to buy an assignment condo despite the fact that you can’t use it immediately. Assignment condos are still considered as an investment since it is still owning a property. Once you purchase an assignment condo you will be given an assignment clause contract in which you can choose if you want to sell it before the property is even built.
Well, if you really want to invest in an assignment condo, you might as well stay on this article as it will be specifically tackling and answering the question – should you buy one? The following are some of the advantages:
- You will be able to purchase a condominium unit for a lesser price.
Yes, you read it right. Buying an assignment condo will allow you to buy a property at a much lesser price. Since the unit is not yet even built or it is still in pre-construction, its value is totally cheaper than the ones which are ready for occupancy. Take note, you will never be able to find these great deals or prices in today's market because they may no longer be available. So, in totality, even though these properties might take a while before you can use them, it is still a win-win deal as you are just investing for your future use.
- The price will increase after completion
Just like what is stated above, buying an assignment condo is a great investment for future use because you can either use it or sell it at a much greater value after completion. The price will increase since it is ready for occupancy wherein everything is up and running including the condo’s amenities.
- You will have the ability to build an equity
Building equity while a condominium is being constructed is a long-term strategy for building wealth because as soon as the value increases, it will be the same amount of your property that you will eventually own.
- You can customize your unit
Another thing about purchasing these assignment sales is that you can be able to customize your own unit which includes the finishes, the details, and many more. Usually, the builder will contact the buyer one year before the completion of the condo so they can still have time to customize the unit based on your preferences. However, it still depends on the condominium corporation if they apply these options, but no need to worry because most of them do.
Overall, buying a condo on assignment sale is a great investment because you can totally take advantage of it in the future. You might not get it now, but eventually, you will realize that by this, you are slowly building your own wealth. Now, if these advantages convince you, then now is the right time to have one.