One of the most common questions that strikes our minds while planning to invest in pre-construction condos is- “are these condos a good investment for the future.” so, the answer to this question is, a BIG YES!!
The concept of pre-construction condos in Toronto is literally misunderstood these days. People see this investment just like they invest in the stoczk market. However, this couldn’t be further from the truth! Just like any other real estate investment, these pre-construction condos should not be counted as a get-rich-quick scheme but rather a long-term asset.
Advantages of Buying Pre-Construction
Offers an extended deposit structure
Get ready to bid farewell to hefty up-front payments! Extend deposit structures are specially designed by keeping your flexibility into consideration. One major financial incentive for buying a pre-construction condo is the flexibility of a 2-year extended deposit structure. If you invest on your terms, you allow yourself the ease of a gradual financial transition without having to pay 20% all at once.
You get the perk of the present prices
Do you know what is it like to buy a pre-construction condo? It is like investing in stock market futures, what you buy at today’s price is expected to give you more profit and investment return in the future. FYI, long-term property values have shown a sky rise at an average historical rate of 6% per annum. If you choose to rely on a seasoned real estate agent, you are more likely to get the properties in areas that have more probability of appreciation. These areas may include gentrifying neighbourhoods.
You get a hands-off experience
If you wish to know how fruitful your investment in a pre-construction condo will be, it is vital to decide how involved you wish to be in your investment. You might know real estate investments are a rewarding and thrilling experience, but it is also a hands-on process. As a result, several potential investors and buyers are abiding to take this opportunity. This is because this will come with the responsibility of managing and maintaining the property right. There is another important perk of buying a pre-construction property that being a 3 to 5-year-long project, you can expect to get the high rise value in the future.
A More Civilized Process
You must be aware that when you buy a resale, the most demanding condos sell in heated bidding battles. The decision to sell is entirely based on the heat of the moment. In such scenarios, there should be a competitive offer made with no conditions to compete for a property. Fortunately, when buying a pre-construction condo, you get a 1-day cooling-off period. During this tenure, you can review your purchase information with your attorney, financial advisor, realtor, and lender. Apart from this, you can utilize this time to further research the region and the builder. It’s a significantly more efficient method to evaluate an investment opportunity or future potential new home.
You can avail of unique tax benefits
Did you know?
Just 50% of all capital gains are taxable? Yes, you read it right!
When you invest in a pre-construction condo, you are sure to get some unique tax perks. You can easily deduct a large portion of expenses from your taxes including property taxes, mortgage interest, and the cost to carry your property like negative cash flow. This is one of the biggest reasons why most of the investors consider pre-construction condos as the best investment. Another crucial thing to note here is, that if you buy a pre-construction condo, you don’t have to worry about it showing up on your credit report.
Process of Buying a Pre-Construction Condo
If you’re planning to buy a new construction condo, here is the process:
- First of all the agents will come to meet you at the designated location. You can choose the date and time as per their availability.
- Then the dedicated sales manager for that specific property will talk to you to know what all you need in your next home.
- Once done, he will give you a tour of the property along with detailed information about the building.
- After this, he will also walk you through the condo model unit or sales gallery to let you know what all you can expect from your prospective future home.
- In the end, you have to discuss the condo’s floor plans and give your input as per your preferences and needs.
So, this is a general guide stating all the steps included when you visit to check and buy a pre-construction condo. These steps may vary for each real estate business.
To Sum Up
If you have already planned on buying a pre-construction condo, many real estate businesses like Condos Deal, GTA Homes, etc will help you out! You have to research well and then make an informed decision. Hopefully, this guide has helped you to know why buying a pre-construction property is a good investment for your future.
