March 15, 2019
Are you on the condo hunt in Toronto? There are plenty of gorgeous units on the market, and the one that’s perfect for you may already be out there. On the other hand, it’s also possible that the condo of your dreams hasn’t been built yet. That’s where pre-construction comes in. While going the pre-con route isn’t for everyone, there are many unique benefits to buying a unit that’s brand new. Understanding them can mean the difference between making the perfect home purchase, and one that you’re less than thrilled with.
Whether you’re looking for the ideal investment condo where you can truly feel at home, here are five reasons to consider pre-construction or assignments…
1) Great pricing
When you buy a pre-construction condo, it probably won’t be move-in ready for several years. During this time, condo prices are bound to rise. The good news? You won’t be paying more come closing time. That’s because buying pre-construction allows you to lock in a great price. Because most builders work with preferred lenders, you may also receive an impressive mortgage rate for a longer period of time than you otherwise would. In other words: when your unit is finished, you’ll enjoy all of the benefits of a brand new condo—at yesterday’s lower price.
2) The freedom to customize
Imagine having the opportunity to make your home feel like your own—before you even move in. For most buyers who plan on living in their units (instead of renting them out), this benefit is a biggie. Buying a pre-con condo allows you to ensure that your new space reflects your taste. Customization options may vary from one building to the next, but you can usually count on getting to select the finishes for everything from your countertop and kitchen backsplash to your cabinetry and flooring.
3) Flexible payments
In addition to locking in a good price, buying pre-construction enables you to take more time to pay (and save up for) your deposit. With resale units, you have to provide the full amount in one lump sum. In contrast, the pre-con payment structure allows you to pay in installments over time. Not only that, but payment timelines are often negotiable (if you’re negotiating, just be sure to work with an agent who understands pre-construction and knows how to deal with builders).
4) They come with warranties
Buyer beware, as they say. Unfortunately, there’s an element of risk associated with becoming a homeowner. But new homes come with warranties, which offer a certain level of protection in case something goes wrong. For pre-construction units, coverage should extend to everything from deposits to closing delays to some of the most common defects that occur within new units. Tarion, an agency that helps protect consumers, will step in when builders don’t meet their obligations. Before you buy a new condo, learn more about warranties and how they can provide peace of mind.
Often, builders and developers offer incentives to gain the attention of qualified buyers. These are the little extras that have the potential to sweeten the deal—from a discounted purchase price to a better choice of layouts to additional storage space and appliances. Even if these offers aren’t made upfront, there may be room to negotiate. You’d be surprised by what you can get with your pre-construction purchase if you ask.
While they may not be right for every condo buyer, brand new units come with some pretty incredible perks. Are you ready to learn more about what Toronto’s pre-construction condo market has to offer?
Thinking of purchasing a pre-construction condo? I have the proven expertise to walk you through every step of your purchase. Get in touch to start a discussion about your needs!
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