Pre-construction condos refer to properties that buyers purchase before completion, sometimes even before construction begins.
In this scenario, there can be several pre-completion buying advantages for the buyer. One of the biggest is that many builders offer discounts and amenity upgrades. There is also the likelyhood that the property will appreciate in value by the time of occupancy.
Ontario remains one of Canada’s active real estate markets, with reasons being urban growth and strong demand for housing, particularly in cities like Toronto and surrounding areas.
Choosing pre-construction condos like the Greater Toronto Area market lets first-time buyers enter the market with flexible payment plans and a fresh, customized home.
Let’s take a quick look at some of the biggest advantages of buying early for Canadian first-time condo buyers.
We mentioned the lower initial purchase price earlier. One of the biggest advantages. Builders are also more agreeable to modifications and upgrades for finishes and layouts. There are also significant government incentives available to first-time buyers that can result in savings of thousands of dollars.
There are also some risks to be aware of: Project delays are one of the most common, which could delay the time of occupancy. Changes in design is another where the unit is modified from the original plan. There are also market fluctuations.
Reviewing contracts carefully with the assistance of a lawyer, verifying builder credentials, and planning for a contingency fund to handle unexpected expenses, can help protect your purchase investment.
But how should one go about buying a condo?
After deciding on what type of residence, a home buyers purchase should start with research in seeking out reputable homebuilders from which to choose. Booking a consultation can help address questions and clarify other details about the process.
To help increase security in your investment, choose a property that aligns with your lifestyle needs. A great location tends to offer a good resale value. Proximity to transit, schools, malls, and workplaces are lucrative factors.
The next step is reserving a unit with that reputable homebuilder, which usually requires a deposit between five and 20 per cent of the purchase price, and paid in instalments.
Did you know? AvranceCorp Development’s projects often have flexible deposit structures that help make payments more manageable for first-time buyers.
Reserving a unit usually requires a Purchase and Sale agreement. This document includes all of the terms and conditions, including the purchase price, construction timelines, cancellation rights, and payment schedule.
Securing pre-approval for a mortgage can help clarify budget limits. Remember that initial deposits are out-of-pocket, with the balance due at closing, typically years later.
Developers like AvranceCorp provide regular project updates. Look for consistent communication to prepare for closing and potential changes.
Did you know? The province of Ontario offers a cooling-off period of 10 days for new condominiums.
There are also several considerations that first-time buyers should be aware of.
Taxes are one of the first things that should come to the mind of the home buyer. The Harmonized Sales Tax (HST) applies to new builds. However, rebates may be available for owner-occupied units, reducing costs.
Some of these Ontario government incentives include the First-Time Home Buyer Incentive and Land Transfer Tax rebate, which should be factored into budgeting. Closing costs, which can include mortgage insurance and registration fees need to factored in expense wise.
Developers often allow staged payments aligned with construction milestones, spreading out financial obligations comfortably.
Pre-construction can be a great path to home ownership, particularly in Ontario. Once the proper research is conducted to work with a reputable homebuilder, buying a home can not only be a great financial investment, but a life-building one as well.
Book a consultation with AvranceCorp Developments today.