4 Things You Don’t Know About Pre Construction Condos

4 Things You Don’t Know About Pre Construction Condos

If you’re thinking about buying pre construction condos in downtown Toronto, one of the best ways to get the most bang for your buck is to buy a pre-construction condo. As the developer needs to sell units before starting construction, they will increase the price as they sell. As the market increases, the units appreciate at price, so buying early means you’ll get the same product at a lower price. Also, if you’re planning to rent the unit, it’s important to know how much rental rates are in the area.

Costs:

While purchasing a pre-construction condo is often more expensive than a comparable used home, there are benefits to choosing this type of housing. Prices are generally fixed from contract signing, so the price of a pre-construction condo does not change even if the property’s value goes up. In addition, because the condo is still under construction, developers usually offer a limited warranty for the unit and the common areas.

Down payment:

Depending on the project, pre-construction condominiums can require 20% of the purchase price as a down payment. This down payment is usually staggered over a year, with the remaining amount payable in five per cent increments at various stages, such as thirty days, sixty-nine months, and one hundred and twenty-seven days. Depending on the developer, this down payment structure may vary from project to project.

Cooling-off period:

A ten-day cooling-off period applies to buyers of pre-construction condominiums. This period is given to prospective buyers after they have signed an agreement of purchase and sale and received all the disclosure documents relating to the property. It is important to use this period wisely to make an informed decision. If you are unsure of the contract terms, consider hiring a real estate lawyer to review the purchase agreement. These professionals can spot any issues that could arise from the sale.

Rental rates:

Renting pre-construction condos is an excellent way to make money later. The market for pre-construction condos is still relatively new, which will result in higher rental rates in the future. This is beneficial to investors because tenants will be more likely to choose a newly built condo instead of a resale one. Many new projects also have state-of-the-art smart technology and unique communal amenities.

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