Top Advantages of Buying a Pre-Construction Condo in Toronto

The average cost of an resale condominium within Toronto reached $799,966, an increase of 24.5 percent year-over-year in February 2022 according to the Toronto Housing Market Report. The trend is likely to remain in place in the years that the city’s population continue expand.

As condo prices continue to climb in Toronto and GTA region. Pre-construction offers a chance for those who are first-time buyers. Condos that are pre-construction offer a variety advantages over other kinds of investments, for instance, the stability of a long-term investment that is generally non-active.

With the city’s population continuing to grow, the cost of a resale condominium located in Toronto is anticipated to increase. Pre-construction properties are an excellent option for those who are first time buyers to buy a home as they have many advantages over other investments.

Five Benefits Of Buying Pre Construction Condos Toronto

1. Deposit Structure

One of the benefits of purchasing a pre-construction condominium is the longer deposit structure.

For pre-construction condominiums typically, the deposit will be between 15 and 20% spread over 18 to 24 months. This is easier for buyers than coming up with a large amount at one time. This makes it simpler to save to make the down payment and gives you time to put the finances in place prior to the date of closing.

In addition an extended structure for deposits may offer some flexibility of when you’ll need to make the payment for the amount. For instance, if you’re not able to obtain an mortgage until construction has been completed You can usually arrange to pay for the remainder of your deposit on that day.

2. Appreciation

There are numerous advantages when you invest in a condo that is pre-construction. Of the more attractive advantages is that it can be a long-term, stable investment. If you buy an apartment that is pre-constructed it is effectively locking the cost of your property at current prices. This means that regardless of how much the cost of construction increases at some point in the near future the closing costs will stay the same.

In contrast to stocks and other commodities unlike other commodities, real estate isn’t susceptible to the same fluctuations as other commodities. Furthermore that as the population continues to increase and expand, there will be a need to build homes, and this helps make sure that the value of homes will continue to increase as time passes.

3. Hands Off

Being a homeowner in Toronto is an exciting and lucrative venture however, it can be an extremely hands-on affair. This is why a lot of potential buyers and investors opt to quit.

One of the major advantages of purchasing pre-construction is the initial 3 to 5 years in which the construction process is completely inactive. This is the reason why purchasing an apartment that is pre-construction can be an investment that can be completely hands-off.

After the development is completed, the investor is able to engage a professional realtor to let their home. This could provide a continuous source of income, with minimal effort on the behalf of an investor.

New homes built in Ontario are covered by a warranty that extends for up to 7 years, which is known as”the Tarion Guarantee. If anything goes wrong during the first couple of years, it is usually the duty of the builder resolve the issue within the warranty.

4. There’s no need to fight another buyer to buy the property.

A very attractive advantages is the fact the fact that you’re not competing with against another potential buyer to purchase the property. When you purchase a resale property the most sought-after condos often face intense bidding battles.

In a booming real estate market, it may be difficult to find the right home to meet your requirements. When you buy a pre-construction condominium it is certain that you’ll receive the property you’ve always wanted. There is also the possibility to modify your home to a certain extent, which will make it even more valuable for you.

Another benefit of purchasing an apartment that is pre-construction is that it comes with the 10 day cooling-off period. This is the time when you may consult with a lawyer to review the contract to ensure that you’re satisfied with the contract. If you’re not satisfied by the terms of the contract you are able to end it at any time without cost.

5. Brand New Unit

When it comes to buying an entirely new house many buyers are confused between buying an existing house or a condo in pre-construction.

Although there are advantages to both choices There are several compelling reasons to select the pre-construction condominium. One of the biggest advantages will be that you’ll become the very first owner of the condo, which means that everything is brand new including the appliances, to the flooring.

You’ll also often be able to customize your space to some degree by choosing your own fixtures and finishes.

In addition, many of the pre-construction condo developments are situated in highly desirable areas that can be difficult to get access to as an resale purchaser. For instance, you might be interested in one particular area which is currently experiencing the process of gentrification.

When you buy a pre-construction condominium you will be able to take part on this development and watch your investment grow with the community.

Conclusion

Pre-construction condos are beneficial for several reasons. One reason is that you’ll secure the price of your property at today’s prices, which means that regardless of how much the price of construction increases in the future, the closing costs remain the same.

In addition when real estate prices continue to rise and population expand, there will always is a need for housing, which will help ensure that the value of homes will remain in the upward trend over time.

When you purchase pre-construction, you’re basically buying a brand new unit, without having to go through all the problems or issues that arise from renovating an older model.

All of these elements are what make pre-construction apartments a good option for those looking to purchase a property in Toronto.