Things to Know About Buying a Pre-Construction Condo in Toronto - Ganna Magazine Blog

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Things to Know About Buying a Pre-Construction Condo in Toronto

The Toronto pre-construction business is currently experiencing a high boom. But before diving into the business there are some things you should consider.

  1. The Deposit – though 5% is usually is expected after reaching an agreement as deposit for the resale of condos, developers in Toronto often times expects a higher sum. This they opine is necessary in order to finance the construction of the project. Note that the 5% upfront payment should be due within 10 or 15 days. After this payment, other modalities are drawn up for the payment of the remaining balance. It usually involves, making payments at different stages of the construction, say 30, 90 or 180 days. Point is: be prepared to pay the builder a much larger deposit for a pre-construction condo.
  2. The 10-day cooling Off Period – In Toronto, you are given a 10 day period to go over or evaluate the whole transaction process. Within this period the investors should get a financer for his project and also draw up legal documents for the investment. If the investor decides not to go on with the transaction within these 10 days period, he or she will be duly refunded.
  3. Waiting, Waiting, Waiting. The is usually an estimated completion time for each project by the builder, but in cases where the builder fails to meet up with the set date, penalties might be accrued to the builder according to what was specified the project agreement.
Have you made up your mind about investing in the Toronto preconstruction home? Then consider these tips: 

Buy pre-construction homes from a developer with a track record. Make sure you make purchase from a developer who has a good track record. Experience matters a lot in pre-construction business. Features such as high-end finishes, architectural appeal among others are some of the fine qualities of a good developer. Superior Realty Point has a great deal of experience and good track records when it comes to preconstruction homes

NEVER invest in pre-construction to flip. Flipping usually involves buying a pre-construction home just for the aim of reselling it once construction is completed. Flipping is actually a bad idea and thus it is not recommended for intending investors. There is actually no point in trying to add more inventory to the market once the project is completed. This is because you are not guaranteed huge profit if you choose to sell your property upon completion. But rather it is advised that after the completion of the building, rent it out for a couple of years then make a considerable amount of returns and grow your equity, then afterwards it is now ideal that you sell the property. By so doing, you tend to gain more from your investment when compared to flipping.
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