Investing in pre-construction condos in Toronto used to be an easy game that almost guaranteed a significant ROI. It’s more important now than ever to be informed and prepared when investing in a condo. A combination of a developer’s historical track record, mixed with a thorough analysis of projected valuations can get you a long way!
Toronto is filled with many pre-construction opportunities and choosing the right that fits your needs can sometimes feel overwhelming. From our experience, we’ve found that there are opportunities for every type of investor, whether it’s buyers, flippers, or renters.
With Toronto’s booming real estate condo market, pre-construction allows you to get in at a great price! Knowing the neighbourhoods will help you select a general area which you’d like to purchase a unit. This can significantly impact the price, based on where it’s located. The more you know about the area, the more empowered you’ll be when making a final decision.
If this is your first time investing in pre-construction, it’s easy for things to get hectic quickly. Unfamiliar steps, jargon, contracts, time pressures and so on. We recommend that you read up on the process of investing in pre-construction in Toronto, or speaking with a professional who can help simplify the whole process and ensure that you’re not being put in any difficult situations that you weren’t expecting.
Here are a few things to consider when investing in pre-construction condos in Toronto:
Ontario laws enforce a 10-day (calendar days, not business) cooling period, where every investor can lock themselves in on a specific price (and incentives) and has 10 days to reconsider their purchase. Use that time to your advantage by going over everything with your lawyer. You can also use this time to explore other options, just in case you overlooked something or a last minute offer gets your attention.
Keep in mind also, that delays are not only common but should be expected. With pre-construction, you’re often getting a great deal, but the delivery date can be pushed back for a number of reasons. Looking through the contract with your lawyer will illuminate if there are any guarantees or incentives if the developer is not able to meet a certain deadline. Once again, looking at the developer’s history (through pre-construction to completion) can shed some light on whether they start and finish projects on time.
It’s also important to be aware of the additional closing costs that will be required once the building is officially registered. Set some money aside to cover things like HST for appliances and utility connections, as well as anything else that might be expected of you. It helps to ask these questions up front so you’re not caught off-guard.
After all is said and done, final closing occurs when the building is officially registered with the city of Toronto. This is when your title is transferred to you and your mortgage payments begin. You’ll also dot your i’s and cross your t’s here by paying all your closing costs, your legal fees and anything else that was outlined in your contract. Once this process is completed, your mortgage is registered and you’re officially the owner of a Toronto condo!
Condo Investments has over 10 years of experience with pre-construction condos. So much so, that our name directly reflects it! We help you make the best investments because we’re intimately familiar with Toronto and all its neighbourhoods. Get in touch with us today to learn more about this fantastic investment opportunity.