A pre-construction condo is a property that has not yet been completed. This type of property is often referred to as a “flip.” This means that the purchaser buys the property to sell it. Sometimes, this can prove lucrative, especially if you buy pre construction condo in Toronto. However, there are risks associated with buying a pre-construction condo, so it’s best to get some information before getting started.
Conditions of a pre-construction condo unit:
When buying a pre-construction condo unit, you must first understand its conditions. You must also understand the developer’s rights. As a first-time tenant, you should expect disruptions and construction-related issues. In addition, you may not be able to enjoy the amenities of the building for some time.
Consider purchase agreement:
The purchase agreement is an important document that contains all the important information about the condominium unit and the project. A lawyer should review it before you finalize the purchase. The purchase agreement will also include a 10-day cancellation period. You can receive your deposit back if you decide to cancel the agreement.
If you are planning to buy a pre-construction condo, you should find out about its location. The best way to do this is by visiting the condominium sales center. You can ask questions about the builder, the plans and the purchase process there.
Consider the developer’s reputation:
The developer’s reputation is another factor when choosing a pre-construction condo. Experienced developers are known to provide good service and quality work. If they sell most of the units in the development, they may waive the mortgage pre-approval requirement. So, be sure to check their reputation and the quality of work before making a final decision.
Consider down payment:
Another consideration is the down payment. The down payment for pre-construction condos usually varies from ten to twenty percent, but some developers may require as much as fifty percent. It’s essential to save up for a down payment before moving into a new home. While saving up for the full deposit ahead of time may seem difficult, a down payment during construction can help you save for this down payment.
A pre-construction condo is a great investment, and owning one has many advantages. However, there are some disadvantages as well. It would help if you looked at the location, financing options, and payment structure before making a final decision.