Sun. Aug 7th, 2022
4 of the Top Reasons to Buy a Pre-Construction Condo

Investing in new condo developments in Toronto has several benefits. Aside from earning 100% appreciation of the home’s value, you can also use the home as your second home or a vacation home. The advantages of buying a pre-construction condominium are listed below. Read on to discover these benefits in more detail. Also, read on to learn how to buy a pre-construction condo and get the best deal on your new home.

Earning 100% appreciation on home’s value:

Investing in a pre-construction condo is like purchasing a futures contract in the stock market. If you buy at current prices, you are betting that the price will increase. In the long run, properties appreciate, and gentrifying neighborhoods have higher chances of appreciation than those in other neighborhoods. But be careful: pre-construction condos are not for everyone. Always do your due diligence, speak to a tax specialist, and check whether condo flipping is allowed in the neighborhood where you plan to buy.

Buying a second home:

If you’re considering buying a second home, you might consider purchasing a pre-construction condo. These pre-construction condos require a deposit, usually between three and ten percent of the total purchase price. Generally, the deposit is not due until the completion date, usually two to five years away. This allows you ample time to save for a down payment. Alternatively, you can pay a large deposit upfront and defer repayment for the next several years.

Saving money:

If you’re on a budget, saving money by buying pre-construction condos can be a smart decision. These properties don’t require full down payment at the time of purchase. Instead, you can spread your down payment over the first year of ownership. This is especially advantageous for first-time buyers, but it’s also great for people upgrading their homes. Here are some of the benefits of pre-construction condos.

Having a cooling-off period:

When you purchase a pre-construction condo unit, you have ten days to change your mind. Whether you are unhappy with the property, this period is critical. You can cancel your purchase and still receive your deposit back. Most pre-construction developments have a ten-day cooling-off period, which is a great benefit for buyers. If you are unhappy with the property, you can use the ten days to get out of your pre-construction condo purchase.

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