Buying Pre-Construction: Top 5 Advantages to Investing in Toronto

There are many benefits when you buy pre-construction. But, among them there are five reasons to think about making an investment.

1. A restructured deposit structure that is extended

When buying a brand new condominium, the deposit (between 15%and 20 percent) are typically distributed. It can last from 18to 24 months. In particular, not having to deposit 20% in advance lets investors and users to conserve. Sometimes, you can it is possible to use a line credit to further distribute the deposit payments. In the 3 to five-year period to build a house and, besides having to pay the deposits structure the mortgage is not an obligation until the closing. The mortgage is only effective upon closing. It means that you have an unbuilt property, but it isn’t listed on your credit reports. This gives you to own Toronto real estate, without affecting the ratio of your debts or your capacity to borrow credit from a lender in this time. For investors and first-time buyers alike, the longer deposit structure and the time it takes from beginning to the building’s completion allow buyers to save. A lot of our first-time home buyers and investors view it as a forced savings or investment strategy. In the end, it’s much simpler to save when you know that you’ll need a home to buy.

2. Gentleness is your Best Bet

The purchase of pre construction condos Toronto is similar to purchasing futures on the stock exchange. In essence, you purchase at the current price with the expectation that in the near future, prices will increase. In the past, long-term costs of houses have always risen. Because of this, you can increase your chances of appreciation by buying homes in highly gentrifying neighborhoods. This is the place where major infrastructure or transportation is planned to be constructed. Since the home that you’re buying is not available for more than a year and that’s why it’s a good idea to purchase a home in an area increasing. These areas are likely to have a lower price and a higher chance to beat the market overall.

3. Hands Off

Although investing or owning property is thrilling and lucrative, investing in real property in Toronto can be an experience that is very hands-on. Because of this, many prospective buyers and investors are turned away from this chance. One of the most significant advantages of buying pre-construction homes is the initial 3 to five years, in which the construction phase is completely inactive. After the building is finished investors can hire an expert real estate agent to let their home. A realtor may manage the property for the cost of a monthly subscription. In this regard, all building-related issues within the initial few years will be covered under the Tarion warranty. Particularly the new homes built in Ontario come with a full warranty of that lasts up to seven years. This kind of warranty and protection for buyers who purchase a resale home is not always available or extend to as long as for a brand new construction. Therefore, managing an investment portfolio of condos is a short amount of time or hours of work.

4. A More Civilized Process

Sometimes, when purchasing resales condominiums, the most sought-after ones are sold in a fierce bidding war. This can be a stressful experience with the last-minute decision making that is mostly based on emotion. In these situations an offer that is competitive needs to be a written offer that is not subject to conditions in order to make a bid for a property. When you purchase a property that is pre-construction there is the 10-day cooling-off period. This is the time when you’ll be able to go over the information you received from the purchase with your lawyer or lender, realtor, or financial consultant. You should also use this time to conduct additional due diligence regarding the builder as well as the location. It’s a much more precise method to evaluate the potential for investment or a prospective new house.

5. New is better

In the market for condos that are resold the buyers and renters are caught up in the latest and trendy, and because of this, there’s an eagerness to pay more. But as time passes building age and maintenance costs start to increase while they are able to see that the Tarion Warranty program expires. This is when the course of a condo building’s appreciation slows when compared to the market. If you purchase an apartment now, in four years, it will age and, with it, moves closer to reaching its peak. If you buy a brand-new condo, in four years you’ll own an all-new property. It’ll also be sought-after, being appreciated above or in line with the market value during the construction phase.

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