Important factors to consider when buying a pre construction condo

1. Important Factors To Consider When Buying A Pre-Construction Condo

2. If you’re looking to buy a pre-construction condo, there are certain factors to consider when making your decision.

3. Invest in a Builder before you invest in a Building • Investing in Pre-Construction becomes inherently less risky when you invest only into reputable builders who have a solid track record • You also want to take a look at what happened post-closing with developments that the builder completed successfully in the past.

4. The 10 Day “Cooling” Period • When you purchase a condo from a developer, you have 10 calendar days from the date of signing to decide if you want the unit or not. The 10 day grace period has no obligations, no penalties, no “gotcha’s”. • The 10 day cooling period allows you to reserve the price, the incentives, and ensures the builder cannot sell the suite to anyone else or change the price on you.

5. Development Fees & Levies on Your Investment • Development fees and municipal levies are determined when buildings are developed. When a building goes up, the population density for the neighborhood increases. • The city is going to determine the impact on the neighborhood, and charge the builder a per-unit price in order to fund the local infrastructure needed to support the residents that the building is bringing in. • It’s critical to have a pre-construction Realtor and Lawyer on your side when you walk into the sales center. The sales reps that work for the builder represent the builder, you need to have representation on your side.

6. HST Rebates for Investors on Condos • HST is included in the price when you purchase a condo. If you’re moving into the unit yourself, or one of your family members is, that’s all you need to know. • However, as an Investor, you need to be aware that on final closing, you’ll be charged HST again. Without going into too much detail here, you can get 100% of your HST rebated if you file for it within 1 year and provide the government with a one-year rental lease agreement proving that you rented the unit out. More on that in this video.

7. Fair Market Value • “Pre-Construction Condos are sold at a discount.” False. This is one of those assumptions that gets tossed around about as much as, “if I don’t use a Realtor, the builder will give me a discount”. • You’ll only know if you’re getting a good deal if you look around, keep updated on the market, and work with a Realtor who knows the market.

8. Condos offer many benefits such as amenities, convenience and parking. It’s no wonder that people are vying to snatch them up before they’ve even been constructed. • But buying a pre-construction condo may seem like a lot to take in at first, but if you have the right real estate agent and mortgage broker in your corner, you’ll be well prepared for your new investment. Checkout these new condos for sale in North York

9. THANK YOU