Preconstruction condos are on fire once more. Before shelling out a huge amount for your investment, there are important things you need to know about. Preconstruction
condominiums are quite attractive among potential buyers and investors. Condominiums that are up for sale during preconstruction period are significantly cheaper.
Thus, make sure you have 100% understanding of this trend to make the most out of your investment.
Must-Knows about Preconstruction Condos
Take a look at some of the most important details to learn and understand about the investment trend on preconstruction condos:
• Deposit. There is higher deposit requirement in preconstruction condominiums compared to resale condos. That’s because your deposit generally funds the
construction of the unit. Thus, in most cases, the deposit is between 15% and 20% of the total unit price.
• Ten Day Cooling Off Period. It is common practice in buying preconstruction condos to have 10-days wherein they can reconsider their purchase. The 10-day
cooling off period is also consisting of calendar days rather than business days. The buyer arranges the pre-approval financing, have it legally reviewed and if in
case the buyer decides to back out during the 10-day period, they can do so. The deposit will be returned without fines or deduction.
• Waiting Period. One of the drawbacks of buying preconstruction condos is that you would have to wait. You need tons of patience to go through the waiting
period. While most builders will give you their expected completion date, it may not be followed on time. Expect at least 6 months to a grueling 2 years of delay just
to be sure.
• Interim Occupancy. After the waiting period, there is another phase called Interim Occupancy Period. During this phase, the condo is already built and ready
for occupancy. However, the buyer is still not the legal owner of the condo even if they can already move in. The buyer-occupant pays an amount to the builder which is
roughly equivalent to the condo fees plus mortgage payment plus taxes.
• Closing Cost. The unit will be officially registered to the buyer once you comply with the closing cost. This closing cost however is not applicable to the
resale units and unique only to preconstruction condos.
Sound and practical investments particularly on preconstruction condos are becoming more popular in the real estate niche in Toronto. Learn more about preconstruction
condominiums and how you can benefit from this type of investment.
For more information please visit: http://99homes.ca/
condominiums are quite attractive among potential buyers and investors. Condominiums that are up for sale during preconstruction period are significantly cheaper.
Thus, make sure you have 100% understanding of this trend to make the most out of your investment.
Must-Knows about Preconstruction Condos
Take a look at some of the most important details to learn and understand about the investment trend on preconstruction condos:
• Deposit. There is higher deposit requirement in preconstruction condominiums compared to resale condos. That’s because your deposit generally funds the
construction of the unit. Thus, in most cases, the deposit is between 15% and 20% of the total unit price.
• Ten Day Cooling Off Period. It is common practice in buying preconstruction condos to have 10-days wherein they can reconsider their purchase. The 10-day
cooling off period is also consisting of calendar days rather than business days. The buyer arranges the pre-approval financing, have it legally reviewed and if in
case the buyer decides to back out during the 10-day period, they can do so. The deposit will be returned without fines or deduction.
• Waiting Period. One of the drawbacks of buying preconstruction condos is that you would have to wait. You need tons of patience to go through the waiting
period. While most builders will give you their expected completion date, it may not be followed on time. Expect at least 6 months to a grueling 2 years of delay just
to be sure.
• Interim Occupancy. After the waiting period, there is another phase called Interim Occupancy Period. During this phase, the condo is already built and ready
for occupancy. However, the buyer is still not the legal owner of the condo even if they can already move in. The buyer-occupant pays an amount to the builder which is
roughly equivalent to the condo fees plus mortgage payment plus taxes.
• Closing Cost. The unit will be officially registered to the buyer once you comply with the closing cost. This closing cost however is not applicable to the
resale units and unique only to preconstruction condos.
Sound and practical investments particularly on preconstruction condos are becoming more popular in the real estate niche in Toronto. Learn more about preconstruction
condominiums and how you can benefit from this type of investment.
For more information please visit: http://99homes.ca/
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