In a housing market like Toronto’s, where benchmark home prices are so high that buyers need a household income of at least $145,000 to even secure a mortgage loan, cobbling together the funds for a down payment is no small feat.
Today’s hottest real estate trend is buying a condo during its Pre-Construction phase.
You may ask yourself, “Should I buy a pre-construction condo in Toronto?” For individuals considering this type of investment, there are a few things to know before signing on the dotted line.
I continuously promote the purchase of pre-construction condominiums & townhouses in Toronto as an excellent investment vehicle.
Here is how to Assess a Pre-Construction Condo Investment Opportunity
A good pre-construction condo investment will do three things: appreciate, build equity, and—assuming you’ve rented it out at a good price—generate positive cashflow. All with minimal effort from you, the investor.
Tips before you buy Toronto PreConstruction Condos
1. Find Out The Deposit Structure
2. Take Advantage of the 10-Days Cooling Off Clause
3. Work With An Experienced Specialized Lawyer
4. Have An Assignment Clause In Your Contract
5. Expect Construction Delays
6. Material Changes May Occur
7. Condo Fees Will Increase
8. Prepare For The Interim Occupancy Period
9. Prepare For Closing Costs
10. Taxes are Rebatable
Builder’s Reputation is Everything: A big name in the development game reduces the risk that comes with buying pre-construction.
Location! Location! Location! Buying in low on an up-and-coming hood promises higher returns