A pre-construction condo in the lovely city of Toronto can be an excellent purchase for an investor looking for long term property value growth. We go over the main reasons you need to consider purchasing one soon.
Are you interested in investing in a condo? If you are, don’t jump on the first opportunity that crosses your path.
Why shouldn’t you purchase a condo if it looks great? Because you could get something even better in a condo that doesn’t exist yet.
While the condo won’t be available for a while, pre-construction is the way to go. You won’t only save money, you’ll also get to customize!
There are plenty of reasons for buying a pre-construction condo. Keep reading for seven reasons why pre-construction is an excellent idea.
1. Better Price
Pre-construction condos offer better deals than those that have already been built. By purchasing before it’s built, you save yourself a bunch of cash.
Have you wanted to invest in a luxury condo but haven’t had the money? Purchase pre-construction is the way to do it.
Why is the cost better if you buy before a condo is constructed? Because developers offer awesome discounts!
By offering highly discounted options they can get better financing terms. Luckily, this provides big savings for investors.
2. Instant Equity
While it isn’t literally instant, the equity you gain on a pre-construction condo will feel like it is. Why? Because your equity in the condo builds while it’s being constructed.
You purchase your pre-construction condo for a certain price. That price stays the same while it’s being built. But that doesn’t mean the condo’s value stays the same.
You already scored with a discount on the value at the time you purchased. By the time you’re looking for tenants, you’ll have equity and the value may also have gone up!
3. Choose your Condo Space
Jumping on a condo investment late in the game means you have to go with what’s left. You may not be able to find a condo that potential tenants will consider worth the money.
Purchasing a pre-construction condo helps eliminate this issue. By buying before construction begins, you get much more of a say in which unit becomes yours.
Say only 20 people have purchased condos in the building you’re looking at. That’s a lot better than having hundreds of people already inhabiting the majority of the condos in a building.
By purchasing as early as possible, you’re much more likely to get exactly what you want.
Do you want a ground-floor unit? How about one all the way at the top? What if you want both?
Whether you want something closest to the pool or with the best view, you’ll have a better chance of getting it when you buy ahead of time.
4. A More Flexible Down Payment
Pre-construction condos offer greater flexibility when it comes to financing. This allows for newer investors to take part in awesome condo deals.
When purchasing an existing condo, you’ll need to have a sizable down payment. While you still need a down payment for a pre-construction condo, it will be easier to handle.
Why? Because it’s spread out over the construction period.
An existing condo requires your deposit up front, taking a big chunk of money all at once. A pre-construction condo requires that mound of cash, but you have longer to pay it. this allows investors to save up over a longer period of time.
5. Other Financial Perks
Do you love the mortgage interest rates you see today? Then go ahead and jump into the investing game with a pre-construction condo. You’ll be able to lock in your fantastic rate for 120 days.
Getting a lower interest rate means you won’t have to pay as much. And since you won’t be paying as much, you’ll be in a good position to make more of a profit.
You may be wary of paying HST on a pre-construction condo, but don’t let that scare you away. True, you may need to pay hundreds, even thousands of dollars in HST. There’s a chance you may not have to, though.
If you plan to live in the condo yourself, check out the GST/HST New Housing Rebate program. It may save you some cash if you qualify.
6. Less Stress
Purchasing pre-construction is a great option if you want renovations completely done by someone else. Once you decide on the details, you won’t have to lift a finger.
Building your own place can cause massive stress and lots of indecision. You won’t have to worry about any of that because your condo is being built and designed for you.
It may take several years for your condo and its building to be finished. But you can just sit back and watch it happen. Once it’s done, you’ll have an awesome unit to advertise.
7. The Best Locations
More and more condos are being built, which means you’ll likely have access to a pre-construction condo in your location of choice.
Sure, there are plenty of condos already on the market, and possibly in that same location. But people want what’s fresh and new.
Choose a pre-construction condo in an ideal location, and you’re sure to find tenants quickly. Tenants looking for the best of the best will skip existing condos and go for the newest and most up-to-date.
Find your Pre-Construction Condo Today!
Pre-construction condos aren’t available instantly, or even soon, but they’re well worth the wait. The benefits involved far outlast the waiting period.
Whether you’re looking for something in the heart of downtown, or closer to a waterfront, there’s pre-construction that will meet your needs.
Finding out about new construction ASAP will help you get the best location possible. Stay ahead of the game by joining our Insider Club!