Why Should I Buy Something Pre-Construction?

Investing in pre-construction properties in Toronto offers several advantages compared to purchasing resale properties.

Here are some key benefits to consider:

Extended Deposit Structure:

The hefty upfront deposit is one of the most significant barriers to entering the Toronto real estate market. Pre-construction projects often offer an extended deposit structure, allowing buyers to transfer their payments. Typically, you pay 20% of the purchase price in increments of 2.5%-5% over 3-5years. This makes it more affordable for first-time buyers and investors, acting as a forced saving strategy while building equity over time.

Gentrifying Neighbourhoods:

Toronto’s real estate market continues to evolve, with certain neighbourhoods experiencing significant growth and gentrification. By investing in pre-construction properties in up-and-coming areas, you can see substantial property value appreciation. These neighbourhoods often have a lower entry price and higher long-term growth potential.

Hands-Off Investment:

Pre-construction investments are passive during construction, typically lasting 3-5 years. Unlike resale properties, you won’t need to manage tenants, repairs, or other issues, making them ideal for those looking to invest without the day-t0-day responsibilities of property management.

More Civilized Buying Process:

Unlike the heated bidding wars often seen in the resale market, pre-construction purchases include a 10-day long cooling-off period. This allows you to review all the details with your lawyer, lender, and financial advisor, ensuring a more measured and thoughtful decision-making process.

Brand New Property:

Purchasing a new condo means having a modern, updated property with the latest design and construction standards. New buildings tend to have lower maintenance fees initially and are covered by warranty programs, making them a more attractive and hassle-free investment.

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