𝐂𝐀𝐏𝐈𝐓𝐀𝐋 𝐀𝐏𝐏𝐑𝐄𝐂𝐈𝐀𝐓𝐈𝐎𝐍 in pre-selling properties refers to the increase in the property’s market value over time before it is officially completed and turned over to the buyer. In real estate, developers often sell properties at lower prices during the pre-selling phase, and as the development progresses, the value of the property tends to increase. Buyers who purchase during the pre-selling period may benefit from the potential appreciation in the property’s value, making it a potential investment opportunity.
Pre-selling properties offer opportunities for property flipping, where investors buy properties at lower pre-selling prices, hold them until completion, and then sell them at a higher market value for a profit. Effective timing and understanding market trends are crucial for successful property flipping in pre-selling projects.
Regarding using real estate as a hedge against inflation, properties are considered tangible assets with intrinsic value. As the general price levels in an economy rise (inflation), the value of real assets like real estate may also increase. Real estate has historically shown a tendency to keep pace with or outpace inflation over the long term. This makes it a potential hedge against the eroding effects of inflation on the purchasing power of money.
In summary, capital appreciation in pre-selling properties can provide a potential return on investment, while real estate, in general, may serve as a hedge against inflation due to its intrinsic value and historical correlation with inflation trends. However, it’s important to note that all investments carry risks, and individual outcomes may vary.
If you are looking for a real estate investment, speak to your licensed real estate practitioner now and ask for figures and presentation:
Erwin Adams L. Ringor
Licensed Real Estate Broker
email@example.com. / +63 948 313 5211 (whatsapp)