SIR Logo

Call Andrew at 1 (855) 876-7334

Buying Preconstruction Vs Existing Condos in Mexico: The Pros and Cons!

Portrait Andrew Schulhof

#303-1338 West Broadway
British Columbia
V6H 1H2

There are many variables to consider when looking to purchase real estate in Mexico but a common question is preconstruction vs existing. Examining the pros and cons of each property type in Mexico will help you make an informed decision.

When it comes to buying a condo in Mexico, there are two main options: preconstruction and existing properties. Both have their advantages and disadvantages, and it’s essential to consider all of these factors before making a decision. Especially important to have a read through considering how many Canadians are moving to Mexico.

Pros of Buying Preconstruction Condos

Affordability of Preconstruction

Preconstruction condos are often sold at lower prices than existing properties, which can make them more affordable for buyers. The lower price is due to the fact that the buyer is investing in the property before construction is complete. Often prices escalate as individual properties are sold. Additionally, developers often offer further price discounts for higher deposits made.


Preconstruction condos often offer buyers the opportunity to customize their units to a certain extent. For example, buyers can choose the flooring, cabinets, and other finishes.


Preconstruction condos are often built in up and coming areas that are undergoing development, which can make them more attractive to buyers. For example, preconstruction condos may be located in areas that are close to shopping, dining, and entertainment options.


Preconstruction condos have the potential to appreciate in value once they are completed and available for occupancy. This is because the area surrounding the property may become more desirable as it develops and grows. This growth area is often referred as the “path of progress” and can be quite lucrative for those buyers.

Builder Warranties

Preconstruction condos typically come with builder warranties, which can give buyers peace of mind and provide protection against construction defects and other issues.

Investment Opportunity

Buying preconstruction condos can also be seen as an investment opportunity, as the buyer can sell the property once it has been completed and potentially make a profit. Some developers will also permit assigning the contract before completion, and there is usually a fee for that. Please refer to the contact clauses for assignment.

Cons of Buying Preconstruction Condos

Risk In Preconstruction Condos

Preconstruction condos are a riskier investment than existing properties because there is a chance that the developer may not complete the construction of the property. If this happens, the buyer could lose their investment. Always go with a reputable and experienced developer.

Delays In Preconstruction

Preconstruction condos are often delayed for a variety of reasons, such as changes in construction plans, budget constraints, or issues with permits and licenses. This can lead to frustration for buyers who are eager to move into their new property.

Hidden Costs

Preconstruction condos can come with hidden costs, such as additional fees for upgrades, higher HOA fees, and property taxes. Not all these costs can be determined at the time of purchase, so it is prudent to consider a contingency fund for these potential higher costs.

Quality  of Preconstruction

The quality of preconstruction condos may not be as high as existing properties, as the construction process can be rushed to meet deadlines. This can lead to problems with the unit, such as leaks, cracks, and other issues. Again this is why it is important to go with a reputable and experienced developer.


Preconstruction condos can be difficult to evaluate, as the final product may differ from what was initially promised by the developer. This can make it difficult for buyers to make an informed decision about their investment. Have your Notario (Mexican an experienced lawyer who has been selected and appointed by the Mexican state after practicing law) review the contract clauses for construction alterations and the associated ramifications.

Pros of Buying Existing Condos

Immediate Occupancy

Existing condos are available for immediate occupancy, which is attractive to buyers who are looking to move into a new property quickly.


Existing condos are already built and occupied, which allows buyers to inspect the quality of the property and see how it has aged over time.

Stable Value

Existing condos are more stable in terms of value than preconstruction condos, as the property has already been built and the value has had time to appreciate.

Established Community 

Existing condos are part of an established community, which can provide a sense of community and stability for buyers.

Maintenance History

When buying an existing condo, buyers can review the maintenance history of the property and make an informed decision about the condition of the unit and the financial stability of the homeowner’s association.

Cons of Buying Existing Condos

Lack of Customization

Existing condos do not offer buyers the opportunity to customize their units, as the property has already been built and is ready for occupancy.

Wear and Tear

Existing condos may show signs of wear and tear, such as peeling paint, cracks, and leaks, which can be costly to repair.

Higher Price

Existing condos are often sold at a higher price than preconstruction condos, which can make them less affordable for some buyers.


Existing condos may not be located in areas that are undergoing development, which can make them less attractive to some buyers who are looking for a more dynamic and exciting environment.

To sum it all up, both preconstruction and existing condos have their advantages and disadvantages. The choice between the two will depend on the individual buyer’s parameters which would include: desired time horizon for occupancy, risk tolerance, availability of funds, and other personal preferences. Also external forces such as: location, product availability, market cycle, and financing capability will play a role in the buyer’s decision. For myself, I recently bought a pre-construction town home in Mexico, because the developer was reputable and we liked the location and community!

If you are considering investing or buying in Mexico, please email me so that I can assist you and share my experience and connections.

Get in Touch

If your are interested in investing in real estate, or looking to list your current home, I can help you form the appropriate strategy and answer any questions you may have. 

Related Posts

7 Ways to Recession Proof your Real Estate Portfolio

With rising rates and an inflationary environment, the likelihood of recession grows larger. It is extremely important to take the time to make sure your real estate portfolio is built to withstand what may lie ahead.

Why Value Investing in Real Estate Makes Sense with Rising Interest

It is still possible to find value in real estate investing even with rising interest rates. Real estate comes with tax benefits, acts as an inflation hedge and has potential for significant appreciation beyond that. Changes to the market just mean that the work you put into your strategy becomes that much more important to optimize your portfolio.

5 Life Lessons Learned in 2022

Lots of valuable lessons were learned through 2022 as we were all presented with a degree of hardships, challenges, and opportunities. It is important to take time to reflect on everything that was learned so that these lessons aren’t wasted ones.

The BIG Benefit of Lifestyle Investing!

Lifestyle is all about improving the quality of your life through real estate and a well constructed strategy. Create the experiences you want for yourself and learn how to do so with the right real estate investment strategy.

Header Image

Investing in Properties with Negative Cash Flow? Why?

Does an investment property have to cash flow to be successful? With the right strategy in place and knowing what skills and circumstances are specific to you, you can find the right market and real estate to make positive investments.

Is Alberta the Best Province to be a Landlord?

Let’s examine the various attributes each province has that feed into being a landlord and owning investment real estate. Which province is the most attractive to real estate investors and why?

Heading of the blog, monopoly board with a card reading,5" Mistakes Landlords Must Avoid"

5 Mistakes Landlords Must Avoid

It is more important than ever to make sure you are doing everything you can to get a positive return on your real estate investment properties. Avoid these 5 mistakes that landlords make and you will be well on your way to a profitable portfolio.

Hourglass in front of a sunset

Should you Buy Real Estate and Wait or Wait to Buy Real Estate?

Keaton Kirkwood does an excellent job of breaking down tough scenarios as a mortgage broker. Is it the right time to buy? Should you wait? He brings reason and a balanced, professional opinion to a difficult question in real estate investing right now.