What are the pros and cons of buying an apartment while it is still under construction?

I believe they are called lancamentos

Hi Mike,

I am very much against buying Lancamentos. There are numerous reasons for my negative approach to purchasing newly built properties and properties which are still in construction.

construction companies going bancrupt and never delivering already sold units;

delays in completing projects (sometimes years);

collapse of newly constructed buildings;

double and triple sales of properties to various unsuspecting buyers...

are just a few of things that can and do go wrong on regular basis in this market segment.


While there might be a strong lure of lower prices in buying properties in construciton, I think the reseller market offers more then enough opportunities for good investment.

In the event that a fool such as I becomes convinced that he wants to buy an apartment under construction, will you provide consulting services? It would be worth it to me - risk reduction. It would be best if you respond to my email address, since you have stated in this forum that you don't recomend it, I don't want to be an **s h*** that publicly humiliates himself by advancing what may be stupid arguments that reflect a lack of knowledge, especially after being advised by an expert that I have a bad idea.

Hi Mike,

Please, do not get me wrong. While I very much opposed to buying lancamentos, there are plenty of people who think otherwise and are very happy with their purchases.

As in many other issues, it is a matter of who you are listening to

Some of the things that I would suggest are:

weigh pros and cons of buying a property in construction vs. a ´úsed´ one;

thouroughly check out the construction company (while I do not think it would do any good for a few years ago one of the biggest, best, and most credible development companies in Brazil went bust living tens of thousands of peole high and dry);

Of course, we can be hired to provide consulting services. I will drop you a line in day or two. Meanwhile, let´s carry on this discussion on the Forum. I am looking for additional insights and opinions from LB members and general public.

Working with Real Estate market in Brazil is a non-stop learning and practical testing (of acquired knowledge) experience. Things change constantly and it would be very arrogant of me to assume an expert role on any subject without openly and continuosly checking my knowledge and opinions against practical experience and dissenting views.