Why Your Next Home Purchase Should be a Pre-Construction Project
While buying a condo before the unit is built might seem counterintuitive, there are several advantages you should be aware of that might help you to see why buying a condo in this manner makes good sense. Whether you are looking for a new home or a rental investment property, they represent an excellent investment with minimum out of pocket money. Among the many reasons why it makes sense to find pre-construction condo projects are:
In most instances, the pre-construction price is typically lower than the finished price. This is in part because the builders need to know they have every unit sold before construction starts. To help with this, many builders offer a discount to those who are willing to buy a unit sight-unseen. In addition, traditional down payments run 20% upfront, but if you are investing in a pre-construction unit, you will be required to put down a mere 5% with the rest of the 20% being due over the next 12 to 18 months. Typically, the last 5% is paid at move in time.
Free Home Inspections
If you are buying a home, you should have a home inspection completed to ensure everything is in excellent condition. When you buy an already constructed home, it is vital you have a professional inspect the home for any issues with plumbing, wiring, and anything else that might be wrong with it. Because you are investing in a pre-constructed unit, everything will be brand new and will have undergone a full inspection once the unit is constructed. It should then be covered by a Tarion Warranty.
Getting Your Pick
New condominiums tend to have the latest amenities such as pools, hot tubs, state-of-the-art fitness centers, and of course the latest in high-tech appliances and gadgets. Definitely worth paying up front for. By getting in early you also get the pick of the litter with the chance to buy just about any unit in the facility. If you are trying to buy one in an existing building, chances are good you will be stuck with whatever happens to be available. There is a condo battle going on in areas such as the downtown core of Toronto, and this keeps driving up prices and can make the whole experience far too stressful. Choosing to buy a pre-built condo eliminates the competition and helps you to secure a lower price.
Maximum Return on Investment
With the rate at which condo values are going up in Toronto, if you invest in a pre-construction unit now, by the time it is finished and ready to move in, you will have doubled if not tripled your investment. Condos currently make an outstanding invest, especially when you realize you only have put down 20 to 25%. Also, as fast as new condos are going up, so too are rents. If you intend to use your purchase as a rental investment, the newer, the unit is, the better the investment. By investing in a pre-construction, you can take full advantage of the top-level rents once the unit is ready.