Preconstruction Condo Guide
Preconstruction Condo Buying Steps
A Guide to Buying Your First Pre-Construction Condo
If you’re thinking about buying your first pre-construction condo as an investment – or even if you’ve already made up your mind to – there are a few things you should know before you sign your name on the dotted line and take out the mortgage. Purchasing a pre-construction condo is a serious decision that should not be taken lightly. It may sound scary, but if you read our guide on the ins and outs of buying your first-preconstruction condo, you’ll be able to make the right choice and manage to snag yourself a great investment that won’t let you down.
Things to Keep in Mind when Buying Your First Pre-Construction Condo
- Buying a Pre-Construction Condo is Different than Buying a Re-sale Condo
This may sound obvious, but many people truly don’t realize how different these sales are. For starters, you purchase a pre-construction condo before it is even built, allowing for you to customize certain aspects that may be more difficult to change in a condo that’s been around for a few years. You’ll get new paint and designs that are in-style and not twenty to thirty years old. Pre-construction condos often come at a lower price, as well, making them a great choice if you’re looking to save some money.
- Be Prepared to Pay when Buying a Pre-Construction Condo
Just because a pre-construction condo can cost less overall when compared to a re-sale condo doesn’t mean that financing is a simple feat. While a re-sale condo down-payment typically averages around five per cent, you can expect to put down at least 20 per cent when buying a pre-construction condo. This may seem like a large sum, but it will likely be paid in regular, smaller installments in order to make it easier for you and your wallet.
But wait – what about closing costs? Closing costs are fees that need to be paid once you take occupancy of your condo and many new condo owners are surprised by just how much they have to pay for. If you’d like to see what factors contribute to closing costs and how to be prepared for them, you can read my previous blog on this topic, here [https://www.trustcondos.ca/pre-construction-condo-closing-cost/]
- Know that it can Take a while for your Condo to be Completed
Once you’ve signed your agreement and your down-payment has been processed, you may be getting antsy to move in. Unfortunately, pre-construction condos can take a while to become a reality, so you’ll have to sit tight for a few years while you wait for other units to find owners and for the building to be completed.
- Don’t Ignore the Cooling Off Period
The cooling off period is a 10 day timeframe in which you get to think over the purchase of your newly bought pre-construction condo and decide if it was the right choice. If you want more information on this subject, I recommend reading my guide on Everything You Need to Know About the Ten-Day Cooling Off Period for Pre-construction Condos once you’re done reading this blog. [https://www.trustcondos.ca/new-condos-ten-days-cooling-off-period/]
What You Will Need to do Before Buying Your First Pre-Construction Condo
- Research the Project Developer Before Buying Your First Pre-Construction Condo
You should never take someone up on an offer without doing a little digging first. It’s a wise decision to do a quick internet search of the developer prior to buying your first pre-construction condo. You’ll want to see what their previous work looks like and if you’re happy with it or if they’ve had any problems in the past, such delays in completing previous buildings or cancelling projects altogether. If you don’t have a good feeling about the developer, it’s best to keep looking.
- Find a Progressive Location
All condos come with perks, but some come with more than others. Take a look at what schools, shopping centres, transportation hubs, and other big ticket places are nearby or will be coming in the near future before buying your first pre-construction condo – or any home for that matter. To learn more about finding a progressive condo location, check this out. [https://www.trustcondos.ca/tips-for-buying-a-new-condos-in-toronto/]
- Ask the Important Questions
Never be afraid to ask the important questions, especially before buying your first pre-construction condo. Ask the developer whether it’s possible to change your floor plan, when the building is planned to be ready to move in, and any other thing that you are curious or concerned about. They’re used to answering these types of questions and should be happy to do so! If you find that the developer is avoiding giving you straight answers, you may want to consider other options.
- Think About What Amenities You’d Like
Is it super important for you to have access to a pool or gym within your condo? What about a rooftop patio? Decide which amenities are absolute must-haves before buying your first pre-construction condo and which ones that you can live without. This will help narrow down your choices and make finding the right place for you much easier.
Do You Want to Speak to an Expert Before Buying a Pre-Construction Condo?
While I do hope that this blog was informative, I know that talking person-to-person can help clear some confusion and indecisiveness up. I’ve been matching people up with great pre-construction condo sales for years and I’m always willing to share my knowledge. Call me at 647-519-5751 or by e-mail at arshadhussain29@gmail.com and I’ll make sure that you have the confidence needed in buying a pre-construction condo that is perfect for you!
The information on this blog is based on my experience. Readers/Users are strongly recommended to obtain independent mortgage, legal, tax or accounting advice. The information displayed is for reference only and is without any representations and warranties. We do not represent the developer. We represent you.
If you would like to discuss more about the Preconstruction condo buying and have questions, then please book an appointment with Arshad Hussain. A trusted name in Toronto pre-construction real estate.