Pre-construction can be one of the best ways to buy in Puerto Vallarta. Here is how to do it with confidence. Many of the best-value condos in Puerto Vallarta are sold before they are built. Buying “pre-construction” (also called a presale) means you reserve a unit while the building is still in planning or under construction, usually at a lower price than you would pay once it is finished.

Done right, it can be an excellent investment. Done carelessly, it can be stressful. This guide covers why buyers choose pre-construction, and the questions every smart buyer asks before signing.

Why buyers choose pre-construction

• A lower entry price. Developers typically offer their best prices in the early phases of a project to secure initial sales.
• Built-in appreciation. Prices usually rise as construction progresses. Buyers who come in early often see their unit’s value increase before they even receive the keys.
• Flexible payment plans. Instead of paying everything up front, you typically pay in stages as construction moves forward, which makes budgeting easier.
• The best pick of units. Early buyers get first choice of floors, views, and layouts.
• Everything brand new. New construction, modern design, new appliances, and new amenities like rooftop pools.

The checklist: 8 questions to ask before you sign

1. Does the developer actually own the land? Ask to see proof that the land is owned by the developer or held in a trust for the project, and that it is free of liens. A Mexican notary can verify this at the Public Registry of Property.
2. Are the permits in place? A serious project should have its construction license (licencia de construcción) and the required municipal approvals. Ask for copies or for the permit numbers.
3. What is the developer’s track record? Has this developer delivered buildings before? Visit a finished project, talk to existing owners, and read reviews. A developer with completed, occupied buildings has proven they can finish what they start.
4. Where does your money go? Ask how your payments are protected. The strongest arrangements use an escrow account or a trust, where funds are released to the developer as construction milestones are met. Many experienced developers also share construction updates with buyers.
5. What does the contract say? Your purchase agreement (often a contrato de promesa de compraventa) should clearly state the price, payment schedule, unit number and size, finishes, estimated delivery date, and what happens if the delivery date is missed. Have it reviewed before you sign, and make sure you receive a version in a language you read fluently.
6. What exactly is included? Furniture, appliances, air conditioning, window coverings, parking, storage? Get the specifications in writing so there are no surprises at delivery.
7. What will it cost to own? Ask for the estimated monthly HOA (condominium) fee, annual property tax (predial), and, if you are a foreign buyer, the annual fideicomiso fee. In Puerto Vallarta, property taxes are generally low compared to the US and Canada.
8. Can you rent it out? If rental income is part of your plan, confirm that the building’s rules allow vacation rentals, and ask whether the developer or a partner offers rental management.

DON'T FORGET CLOSING COSTS

When you close on the finished unit, budget for closing costs, which include the property acquisition tax, notary fees, appraisal, registration, and (for foreign buyers) setting up the fideicomiso. Ask your notary for a written estimate early so it is part of your plan from day one.

Red flags to watch for

• Pressure to pay a large deposit before you have seen the contract.
• Payments requested in cash or to a personal bank account.
• Vague answers about permits, land ownership, or delivery dates.
• No finished projects or reachable past buyers.
• A price that seems far below everything else in the neighborhood.

The bottom line

Pre-construction is one of the best ways to buy into Puerto Vallarta’s growing market at a better price, with a payment plan that fits your budget. The key is to work with an established developer, protect your payments, and get everything in writing. Ask the questions above, and you will be able to buy with confidence.

Your Future Home has delivered completed developments in Puerto Vallarta’s Zona Romántica. Ask us about our current pre-construction opportunities, and we’ll gladly walk you through every one of these questions.