8 Benefits of Buying Pre-Construction Condos In Toronto
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8 Benefits of Buying Pre-Construction Condos in Toronto
Real estate buyers in the Greater Toronto Area, as in any other location, have two choices when looking for a home. They can either buy an existing property or a pre-construction home.Given these choices, more home buyers are discovering many lucrative benefits of new-build condos that resale properties can't offer.
Let us look at why buying a pre-construction condo in the Toronto area is better than purchasing a resale home. Ultimately, the final decision depends on your personal choice, goals, and objectives.
First, Infrastructure Growth in the GTA.
Growth in the Greater Toronto area has continued despite the pandemic. Pre-construction condominium projects generally tend to be centred around economic hot spots where plenty of amenities exist.
Realtor.ca is a trusted website in Canada that tracks the GTA real estate market, and it reports a significant post-pandemic economic activity.
It says: "Toronto's growing economy is signified by the new construction and renovations taking place throughout the city. As one of the most popular real estate markets in Canada, many families choose to live in the Greater Toronto Area where transit is easily accessible by using the subway, streetcars, busses, and Go Transit trains,"
It can take a considerable amount of time to complete the construction of a high-rise condo building, - several years. If the GTA economy continues to grow in the long term, you could see significant appreciation during that time.
Second advantage is you get a Brand-New Home.
It is said that a few things are more intoxicating than the fresh smell of a new car. But most people would agree that the one thing that tops that new car scent is the alluring aroma of a brand-new home.
Being a new home's first occupant is not only pleasing to your olfactory senses but there are definite benefits that accompany that honour. For instance, you'll have the latest, most up-to-date, and cost-efficient (hence greener) appliances that are also the trendiest. Nothing swells the pride more than a stylishly sleek, modern new home you can call your own.
Third, You can Customize Your Home.
And this is another big plus. You have a much broader choice of floorplans to choose from with most new construction. Furthermore, many builders allow you a certain number of custom features to make your home uniquely your own. And custom features are far more affordable during construction than trying to retrofit them to an existing house.
You can add personalized touches like the quantity and placement of built-in lighting to suit your unique traffic patterns and they are not just a nicety; they're downright practical. Appliance choices and colours are other ways to customize your condo. You can select your flooring, cabinetry and counter-tops from a range of available choices.
Fourth -You Get a Construction Warranty
All new homes sold in Ontario come with a statutory warranty provided by the builder and backed by Tarion to address any post-sale deficiencies discovered in the home. Builder warranty is covered for the first two years. Structural defects are covered by Tarion warranty for up to the first seven years.
Different items in the home are covered under the warranty based upon a one, two, and seven-year time frame on your condominium. Everything from fit-for-habitation guarantees to the structural integrity of the home is covered in the warranty period.
A full list of coverages can be found on Tarion’s website. See the link in the description below.
As an added protection and to ensure fair treatment of home buyers; builders and vendors are licensed and regulated by the Home Construction Regulatory Authority or HCRA.
Fifth Advantage - Better Prices
The general trend for pre-construction home prices is to increase. Getting in at the early stages of a new project means you're likely buying at the lowest possible price the builder will offer.It's not uncommon for a builder to significantly increase unit prices in the second and third release of the project as compared to the prices offered in the first release. Early buyers see the best price per square foot in a hot market like the GTA when demand is high.
Sixth benefit is that builder offer Incentives to purchase their unit
A staggering amount of financing is required to build a condominium project. Builders face tremendous pressure to quickly sell units to save on interest and investment capital carrying costs.Many builders use early buyer incentives to attract qualified prospects to sell out their projects. Incentives can range from more customization options to capped development fees, free parking for a limited time, and free internet for a year
Next advantage is you get More Time to Save
If you're not quite ready to make your purchase, you may be able to buy time by making your down payment in a series of installments spread across several months. For some buyers, having an extra four to six months of intensive saving to purchase the home of their dreams may be just the flexibility they need to turn their dreams into reality.Gradual payment of deposit will also give you more time to arrange financing for your home. Perhaps a big raise or bonus is just a few months away, giving you the extra income you need to qualify for the loan and interest rate you want instead of being priced out of the market.
And finally, Lower Maintenance Costs
New condominium units are stocked with modern materials, equipment, and other construction infrastructure. A new condo will cost far less to own and maintain over its first ten years than an existing unit.Also, buying a resale property may require a costly home improvement or renovation budget right out of the gate. You avoid that expense by purchasing a new condo. It's a significant benefit that resale homes can't compete against.
Buying a pre-construction condo is not a risk-free road to riches. Buyers must perform their due diligence to ensure that the property they're considering is a solid investment before forking over their hard-earned cash.
For example, ensure you're working with a reputed builder with a track record of successfully completing previous projects. Don't get caught up in the razzle-dazzle of the sales pitch and pay for unnecessary upgrades. Only buy what you truly believe will enhance the quality of your life and the value of your property.
Get a good understanding of your closing costs. Estimating pre-paid property taxes, legal fees, and other taxes are relatively easy. But municipal development levies can suddenly pop up and bloat your closing costs by thousands of dollars. Try to cap variable costs so you're not stuck with unexpected expenses at the last minute.
The best way to protect yourself when buying a pre-construction condo is to get your lawyer and realtor who are experienced in pre-construction real estate involved from the beginning of the transaction. These two professionals will alert you to obscure or hidden liabilities that can change the economics and value of the purchase in ways that aren't to your benefit.
For more information on how to buy a pre-construction call or email me. You can reach me at 647-834-9928 or sukhinvasara@gmail.com
