How to Find the Best Pre-Construction Condo Prices in Toronto
If you are looking for the best pre-construction condo prices in Toronto, this article has everything you need. Take a peek at how we breakdown an excellent method to get the most bang for your buck on your next purchase.
As Toronto’s population increases, so does the price of its real estate.
The Greater Toronto Area’s condo prices are at a record high with an average sales price of $550,000 in the second quarter of 2018. In the city, that price was more than $603,000.
Pre-construction condo prices are even higher, despite more condos are under construction than ever before.
So how do you find the best price? Our guide gives you a great start.
You Need to Know the Basics of Pre-Construction
Buying new condos in Toronto isn’t cut and dry like buying resale. That’s why you need to know what you’re in for if you’re looking at pre-construction condos.
These tips give you a general idea of costs and expectations you need to know when buying a pre-sale condo in Toronto:
- Deposit – When you buy a resale condo, the deposit is around 5%. When you buy pre-construction, it’s as much as 20%, broken down into a structure. The initial deposit is $3-5,000 down, followed by increments of 5% at different stages of the process. The final 5% is due at occupancy.
- Cooling off Period – In Ontario, you have 10 calendar days to change your mind after you sign a contract. If you back out, your deposit gets returned and you won’t assess any fees.
- Delays – Prepare for delays because they happen all the time with new construction. New condos can run anywhere from 6-18 months behind schedule.
- Changes happen often – What you see in the renderings may not be what you get. Some things won’t change like the materials used but builders have a lot of leeway in everything else.
- Occupancy period – After the constructed ends but before the condo gets registered, you will be in an occupancy period. During this time, you will pay rent to the builder. Occupancy periods are 4-12 months long on average.
- Closing costs – There are many extra fees that you need to pay at closing on a pre-construction condo. Your agent will have the entire list of builder adjustments you need to be aware of.
- HST – If you’re occupying the condo, you may get a rebate on your 13% HST. If you’re an investor, it will cost you thousands.
Because so many of the costs involve percentages of the sales price, it’s important to make sure you’re getting the best deals. Prices fluctuate between $750-1100 per square foot in Toronto. We’ll show you how to get the biggest bang for your buck.
Decide Your Needs and Wants
Before you do anything else, you need to figure out your wants and needs. Do you need to live close to public transit? Do you want a pool in your building?
Make a list of the things you want and the things you need. Try not to confuse the two!
Think toward the future when you build your list. Are you looking to settle down and start a family? Keep that in mind when estimating your square footage and school district.
Do you need a lot of storage? How many bedrooms do you need? Is it a safe neighborhood?
These are considerations you must make before you do anything else.
Find A Knowledgeable Real Estate Agent
Now that you know what you want and what you need, you can bring your lists to a real estate agent. In the pre-construction business more than ever you must make sure your agent knows what they’re doing!
There are now many real estate agents in Toronto that specialize in pre-construction condos. Research each agent, looking for their track record. Are they licensed and reputable?
Do they have relationships with certain builders? If so, can they get you pre-sale deals? Buying a pre-construction unit before the condo even hits the market can save you thousands.
Sign Up For New Listing Emails
Browse the Internet for builders and real estate agents in your desired area. Deals can come along every day that fit your budget and your wants/need. You have to take charge of your future, even if you’ve hired an agent.
Find out what amenities the developer is adding now and which may get added in the future. A swimming pool, for instance, will raise your condo fees around $50 per month. If you’re already on a tight budget, you want to stay on top of any extra fees.
When you’re browsing floor plans, think about using all the space. Buying a condo with a large den is one of the ways buyers get the most for their money. In the future, a large den can convert to another bedroom.
If you like a floor plan but you’re coming close to the top of your budget, rethink it. If you won’t use it or don’t need it, reconsider that condo.
Don’t Go Over-The-Top with the Finishes
The same thought process that goes into the appliances should apply to the finishes. A salesperson works for the builder and wants to get top dollar for the condo. They will try and talk to into upcharges, claiming it helps the resale value.
But that depends on a few things. If you’re planning on living in the condo for a few years, you can upgrade certain finishes later on. If you’re only agreeing to features because it’s an investment, it may not be worth it now.
For instance, if you opt for upgraded kitchen hardware now, they risk getting damaged in the time you’re living there. Upgrade them before you put your condo on the market and you can show off your “upgraded kitchen.”
If you’re buying the condo with the intention of flipping it or assigning the contract, it’s a different story. You’ll want to spend a little at first and recoup your costs when you close.
Remember, buying pre-construction takes time. If you’re looking for a quick flip, pre-construction may not be the best investment for you.
In real estate, location matters. In Toronto, that statement is even truer. If you want a vibrant nightlife and prime shopping, look in King West. If you’re looking for luxury living, Yorkville is one of the most affluent neighborhoods in Toronto.
Midtown has quick access to downtown and is less pricey. It’s also a little quieter and great for young professionals and families.
Your real estate agent will point you in the right neighborhood for your needs and your budget.
Factor in the Future
As much as location matters, the future of the location does too.
Is the area getting a new shopping plaza or school? Will there be an upgrade to the infrastructure in the neighborhood? The answers to these questions could have a big impact on your property value in a few years.
This is true even if the building is going up in an area currently less desirable. Adding new shopping plazas, parks, and transit access can yield a price growth in the future.
We’ll Help You Find the Lifestyle You Deserve
It all boils down to what you’re looking for and what you’re willing to spend. Knowing the best condos and condo prices in Toronto and how to find them is what we do.
At NewCondos.to, our only focus is pre-construction projects in the Greater Toronto Area. Our expert staff is knowledgeable and will find the perfect condo you.