There are several compelling reasons to consider purchasing new construction. For one thing, depending on the sort of new building, you may be able to modify your living area to varying degrees. That may imply controlling the number of bedrooms and bathrooms on your property. Alternatively, it might imply having to adhere to a predetermined plan while getting to select your wall colour, flooring, and worktops.
Purchasing pre-construction has several advantages. However, here are the top four reasons why you should consider making the investment.
Deposits (usually between 15% and 20%) are often spaced out when acquiring a newly built condo. This might last anywhere from 18 to 24 months. Specifically, without needing to put down a 20% deposit helps investors and end-users to save money. In some circumstances, a line of credit can be used to stretch out the payment deposits further. There is no mortgage responsibility until closing during the 3- to 5-year construction period, except paying the deposit structure. In fact, the mortgage is only activated at the time of closing. This implies you own a home that is still under construction, but it will not appear on your credit report. And this gives you the freedom to own real estate without jeopardizing your debt ratio or your capacity to borrow money from a lender during this time. The lengthy deposit structure and time it takes from start to construction completion allow first-time buyers and investors alike to save money. Many first-time home buyers and investors see it as a compelled saving/investment approach. After all, it’s simpler to save money when you know you’ll need it for a condo.
Let’s face it; gentrification is happening everywhere. Regeneration is becoming the trend, particularly in the downtown core. There are many factors at play, but plan zoning, transit, and the influx of service-oriented and creative-industry jobs in the employment area are playing a role. Not to mention, a younger, more connected and tech-savvy generation is gravitating to these areas. This is what leads to increased demand for condo and townhome real estate.
For investors and first-time buyers alike, this may mean you can hire a real estate agent or developer’s representative who can get you accepted into a pre-construction condo project. Or, if you are a developer, you may be able to pre-sell your condo before condos start development. It’s an effective way to build pre-registration and pre-sales of your project.
Like we said, when it comes to buying a property pre-construction, you may be able to get a unit in a higher-end, higher-priced unit than if you were to buy it when it’s completed. You may be able to get a view or a building amenity you would otherwise not be able to get or afford. In the pre-construction stage, you can negotiate on the price of the condo unit, in terms of what you’re willing to pay. In fact, it’s not uncommon for developers to provide pre-purchasers with an opportunity to opt out of their pre-purchase contract or to renegotiate the price if the final product is not what the developer initially proposed.
When it comes to pre-construction condos, you’ll have the opportunity to see in 3D what your final unit will look like. This will allow you to anticipate the layout, the height of your ceilings and the proximity of your closets to the washroom. You also will be able to see how the balcony and windows look, including the amount and size of natural light. This will allow you to see the unit’s potential and to determine which you’d be happy living in.
If you’re thinking about purchasing a condo or townhouse pre-construction, you should consider the various factors. For one thing, you’ll need to be certain that the builder has the financial wherewithal to follow through with the purchase. Secondly, you’ll need to be certain that the development area is in the midst of gentrification. Finally, you’ll need to be sure that the developer can build a quality product that will deliver in terms of value and the use and enjoyment of the property you’re purchasing.
Roger Rampuri provides all his Real Estate clients with the highest degree of professionalism and a personalized strategy for success. We offer many outreach tools. Whether you are selling or buying a home, we guarantee amazing services to ensure your real estate needs are successfully fulfilled. Reach out to our team today!