Whether you’re a landlord or want to become a landlord, you may be wondering if purchasing a pre-construction homes in Toronto is worth it compared to resale property. There are many benefits to buying a property during the pre-construction stage. To help you make your decision with ease, we’ve broken down the advantages of purchasing a pre-construction property in this blog. We’ve also gone ahead and outlined three steps to follow when inquiring about pre-construction homes.
Table of Contents
What is a Pre-Construction Property?
RE/MAX says, “A pre-construction home is a house your buy before it’s constructed.” The choice of homes includes high-rise condos, low-rise condos, detached houses, semi-detached houses, and townhouses.
Advantages of Buying Pre-Construction Homes
Flexible Deposit and Appreciating Property Value
When purchasing any property, you need to put in a down payment. However, when it comes to buying a pre-construction property, the deposit varies because it’s hard to estimate the total value of the property during this stage. That’s why you’re most likely to be eligible for putting a minimal down payment until you’re required to pay the rest in the final closing.
Suppose your financial situation is not ideal. You can still purchase the property, and you’ll have extra time to improve your financial situation while the property is being built – until it’s time to finance.
Overall, purchasing a pre-construction property allows you to put a minimal down payment and improve your financial situation (if need be). In the meantime, the property’s value will appreciate.
No High Costs and Bidding Wars
Many new properties are built in underdeveloped suburban areas. As a result, you avoid buying an expensive property in developed urban areas like Vancouver and Montreal.
At the same time, there’s no need for bidding wars with pre-construction properties compared to resale properties. When it comes to resale properties that are attractive and in a good neighbourhood, the inventory is usually low. That’s when buyers become desperate, and bidding wars happen, causing a spike in prices.
However, when it comes to pre-construction properties, the purchasing price is fixed, and you’ll know exactly how much you’ll be paying without worrying about inflation.
Customization, New Utilities and Appliances
Another appealing advantage to pre-construction homes is the opportunity to customize the property to your liking. These customizations may potentially improve the property’s value while differing from neighbouring homes, which helps you avoid any costly renovations in the future. These customizations can range from choosing the colour palette, finishes, appliances, etc., which saves you time and money from renovating these designs later.
New houses are typically built to fit current and trending interior designs. Additionally, new homes are usually equipped with the latest technology built-in, such as alarm systems, speaker systems, internet, and cable wiring, along with new appliances like plumbing, heating, air, and electrical. The benefits to new designs, technology, and appliances, are the low risk for maintenance and repairs. So when the time comes to renting out the property, there should be little to no maintenance or repairs requested by tenants.
Warranty
There should be little to no maintenance or repairs reported by tenants. However, if issues arise, Canada offers warranty programs for newly built properties. The warranty covers delays in occupancy and closing coverage, deposit protection, and the cost of repairs in the case of construction issues once moved in. Thus, you’re covered!
10-Day Cool Off Period
Another great advantage to buying a pre-construction property is that you’re given a 10 day “cool off” period. You can arrange your finances and have a lawyer review the agreement during this period. If you change your mind, you can walk away from the property with your entire deposit.
Now that we’ve covered the 5 advantages of buying a pre-construction home, we hope we’ve made your decision a little easier. If you have any questions or concerns, please feel free to Contact Us.
5 Complete Benefits of Buying a Pre-Construction Property in the GTA
Whether you’re a landlord or want to become a landlord, you may be wondering if purchasing a pre-construction homes in Toronto is worth it compared to resale property. There are many benefits to buying a property during the pre-construction stage. To help you make your decision with ease, we’ve broken down the advantages of purchasing a pre-construction property in this blog. We’ve also gone ahead and outlined three steps to follow when inquiring about pre-construction homes.
Table of Contents
What is a Pre-Construction Property?
RE/MAX says, “A pre-construction home is a house your buy before it’s constructed.” The choice of homes includes high-rise condos, low-rise condos, detached houses, semi-detached houses, and townhouses.
Advantages of Buying Pre-Construction Homes
Flexible Deposit and Appreciating Property Value
When purchasing any property, you need to put in a down payment. However, when it comes to buying a pre-construction property, the deposit varies because it’s hard to estimate the total value of the property during this stage. That’s why you’re most likely to be eligible for putting a minimal down payment until you’re required to pay the rest in the final closing.
Suppose your financial situation is not ideal. You can still purchase the property, and you’ll have extra time to improve your financial situation while the property is being built – until it’s time to finance.
Overall, purchasing a pre-construction property allows you to put a minimal down payment and improve your financial situation (if need be). In the meantime, the property’s value will appreciate.
No High Costs and Bidding Wars
Many new properties are built in underdeveloped suburban areas. As a result, you avoid buying an expensive property in developed urban areas like Vancouver and Montreal.
At the same time, there’s no need for bidding wars with pre-construction properties compared to resale properties. When it comes to resale properties that are attractive and in a good neighbourhood, the inventory is usually low. That’s when buyers become desperate, and bidding wars happen, causing a spike in prices.
However, when it comes to pre-construction properties, the purchasing price is fixed, and you’ll know exactly how much you’ll be paying without worrying about inflation.
Customization, New Utilities and Appliances
Another appealing advantage to pre-construction homes is the opportunity to customize the property to your liking. These customizations may potentially improve the property’s value while differing from neighbouring homes, which helps you avoid any costly renovations in the future. These customizations can range from choosing the colour palette, finishes, appliances, etc., which saves you time and money from renovating these designs later.
New houses are typically built to fit current and trending interior designs. Additionally, new homes are usually equipped with the latest technology built-in, such as alarm systems, speaker systems, internet, and cable wiring, along with new appliances like plumbing, heating, air, and electrical. The benefits to new designs, technology, and appliances, are the low risk for maintenance and repairs. So when the time comes to renting out the property, there should be little to no maintenance or repairs requested by tenants.
Warranty
There should be little to no maintenance or repairs reported by tenants. However, if issues arise, Canada offers warranty programs for newly built properties. The warranty covers delays in occupancy and closing coverage, deposit protection, and the cost of repairs in the case of construction issues once moved in. Thus, you’re covered!
10-Day Cool Off Period
Another great advantage to buying a pre-construction property is that you’re given a 10 day “cool off” period. You can arrange your finances and have a lawyer review the agreement during this period. If you change your mind, you can walk away from the property with your entire deposit.
Now that we’ve covered the 5 advantages of buying a pre-construction home, we hope we’ve made your decision a little easier. If you have any questions or concerns, please feel free to Contact Us.