4 Things To Know About Buying A Pre-Construction Condo

Before you buy pre construction condo in Toronto, there are many things you should know, from construction costs to financing options. Read on for tips to make your experience with pre-construction condominiums smooth and enjoyable. Also, learn about the Cooling-off period. And most importantly, don’t be surprised if construction is delayed by months or even years. Plan on moving six months later than you initially planned. And remember to bring a contingency plan just in case.

Construction costs:

Buying a pre-construction condominium requires more money upfront than purchasing a resale. The biggest difference is the amount of deposit you will need to put down. Buying a resale condo will typically require a minimum of 10% down while buying a pre-construction unit will require anywhere from 20 to 50 percent. As long as you have enough savings, however, it is well worth the extra cost.

Cooling-off period:

When buying a pre-construction condo, you are entitled to a 10-day cooling-off period. However, this period is only valid for pre-construction condos. If you are unsure of any aspects of the contract, it is better to seek legal advice. The real estate lawyer you choose should review the contract in detail, and be sure to note any questions or concerns that you may have. If necessary, he or she can also review the contract for you.

Financing options:

A great way to own a home while it’s still a construction site is to invest in a pre-construction condo. You can pay 20% of the total price as a deposit, and you’ll earn 100 percent appreciation over three to five years. You won’t have to worry about mortgage payments, maintenance, or tenants, either. Most pre-construction condos have staggered deposit schedules, with 5% due at signing and the remainder cashed upon occupancy. Some builders offer a more flexible schedule, with $1,000 paid monthly for five years.

Completion dates:

Pre-construction condos are sold in pre-construction stages. They are not complete, but you can still view the plans and choose your favorite floor plan. Completion dates of pre-construction condos can range from 30 to 60 days after the start of construction. It is important to consider the builder’s track record and reputation before making a decision. It is also a good idea to get the help of a mortgage professional before you purchase a pre-construction condo.