People interested in owning condominiums in Toronto often get offers to buy pre-construction condo investments. These are under construction homes for sale in Toronto that have become extremely popular in today’s market. Aside from the fact that they are sold during the development phase, there are many other things that you should know about pre-construction condos in Toronto if you are interested in buying one.
Payment plans and procedures
Purchasing a pre-construction condo for sale in Toronto is different from buying a brand new or resale condo. The deposit required is often around 20% of the total price. Don’t worry, though, because developers will likely give you the option to pay off the down payment in instalment. For example, you can pay 5% in the first 30 days, then another 5% in 90 days. The next 5% will be on the 180th day and the remaining 5% upon occupancy. The down payment is typically higher for projects in the first stages of construction. If you buy closer to the completion of the unit, the down payment may become more negotiable.
Real estate experts see pre-construction condo investments as the best ones in the market because they are more affordable than resale units. What’s more, their value appreciates at a higher rate. You will generally double your ROI once the unit is completed and fully-furnished and you start renting it out or selling it. This is especially true for those pre-construction condominiums in up-and-coming neighbourhoods where housing demand is high.
Since you are buying a unit that is still under construction, you can still do some changes in its interior to suit your needs. You can alter the floorplan, including some features and appliances and make them more modern, appealing, and unique.
If you want to be successful in this type of investment, don’t work alone. Seek help from brokers and sales representatives who can give you first access to new developments in the city sold at the lowest prices.
If you’re considering investing in a new condo, browse our now selling pre-con listings.