Everything You Need to Know About Buying a Pre-Construction Condo
Thursday Dec 19th, 2019
Are you thinking of purchasing a condo in the near future? Many home buyers are faced with the difficult task of choosing between a resale or a pre-construction unit. However, with condo prices and sales skyrocketing in Canada’s largest housing markets, many are choosing to invest in pre-construction. This is because you are buying a condo for the future at today’s price without the appreciation costs.
This month’s blog will highlight the benefits of buying a pre-construction condo unit.
- Saves you money.
One of the perks of buying a pre-construction condo is that you will usually have access to the best selection of units, discounted prices, extra incentives and promotions, particularly when you register for VIP access before they go on sale to the public. Also, the deposits, which are usually between 15 to 20 percent, are typically spread out and can extend over 18 to 24 months. Another advantage is that the mortgage is not in effect until the builder registers the condo and you officially take occupancy. This means that you will have plenty of time to save up before the full mortgage kicks in.
- Less renovations and maintenance.
When construction is completed and you move into the brand-new unit, it will require much less maintenance and no up-front renovations. Your appliances will be new, the walls will be freshly painted, and your unit and building will be in great condition for many years to come. For many buyers, this situation is ideal because there is no hassle of planning and living through renovations. Besides, who doesn’t want to move into a new home that has not been occupied before?
- Return on investment.
Many buyers of pre-construction condos like to buy the unit for investment purposes and sell it once keys are in hand. This is because when the building is constructed, the price of condos will often times go up. Alternatively, you may rent out your unit to a tenant whose rent payment will help pay off your mortgage and help build equity in your investment.
- More flexibility.
One positive aspect of purchasing a pre-construction condo is that you have what is known as a “10-day cooling off period” or “rescission period”. If you change your mind within 10 days after you sign the agreement, you can cancel the sale and you get your money back. On the other hand, if you want to flip it to make a profit without having to go through taking possession before selling, you may be able to “assign” your contract. You can do that by transferring the possession to a willing buyer before closing.
When looking to make a significant investment like buying pre-construction condos in Toronto and the GTA, you should consider having an expert realtor by your side. With the experience the Traboulsi Team holds, we can help you decide if buying a unit in an upcoming building is right for you and make sure you understand every step of the process. If interested, be sure to contact us for more information.