Buying a brand new house or a condo is always fascinating. Splashy new materials, the benefits of first owners and the possibility of getting a large appreciation in price all are alluring to buy the pre-construction.
Still, there are a few things you should consider before buying a pre-construction property to determine if it’s right for you.
Benefits:
Flexibility-It gives you the advantage of choosing your own floor plan and getting the
property upgraded to your own taste. In the case of a Condo, it gives you the flexibility to choose
your floor level.
First time user- Having your own home with everything new is a huge benefit. You will also
get a Tarion warranty with your purchase. The structure is covered under the warranty that
allows you to live worry-free.
Deposit- The pre-construction purchase (condo in particular) you usually give deposit over an
extended period of time. The deposit structure is different with every builder. The longer
deposit period gives you the flexibility of owning a property when you don’t have a large lump
sum amount saved for a down payment.
Appreciation- Pre-construction purchase means buying the property before it is built. The
possession is usually from one to four years from the date of booking depending on the type of
the property. The real estate prices usually rise over time. You will see the appreciation in
property with only paying the deposit.
Cautions:
Delay is the most common thing in the pre-construction project. The occupancy or closing date determined
at the time of the booking is tentative. The occupancy date can be delayed due to a number of reasons. If
you planning to move to the new place it is always a good idea not to sell your current property until
you get a firm occupancy date.
When buying a pre-construction make sure to factor in the development charges and HST amount that
will be payable at the time of the closing. These charges could be in thousand depending on the size of
the property. The HST is usually refunded in most purchases. Always consult a professional to avoid
sudden surprise at the time of the closing.
If you are considering investing in pre-construction, hiring an experienced professional will make your
purchase less stressful and more profitable. If you are interested in learning more about investing in pre-
construction projects then check the new projects on my website.
Balwant Bhangu | Pre-construction & New Homes Specialist
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