Limited Liquidity of Your Investments

If you think real estate does not need liquidity, then you are WRONG.

What if you need cash urgently?

What if your life suddenly changes and your investment must be sold?

Below are three types of pre-construction projects you should think about again when you see enticing advertisements.

1. Non-mainstream projects
Have you heard something called a condotel? They advertise that the condo will be managed by a hotel, with tenants all year round, and promise that there will always be rental income. Sometimes, this kind of project is called a time-share, but other times it is called a hotel pre-construction condo. Regardless, this is definitely not a mainstream pre-construction project.

2. Limited liquidity areas
In places like Niagara Falls, St. Catherines, or East Gwillimbury (which we talked about in a previous article), the real estate market there is inactive. If you remember Kristina who was forced to sell her house during COVID-19, then you will recall how difficult it is to sell real estate properties in these areas.

3. Commercial pre-construction projects
This type of pre-construction project is a good option for end-users but not investors. Because people tend to rent and not buy, if investors want to sell their property, it may be difficult to find a good buyer.