Are you thinking of purchasing a pre-construction home in Toronto? Owning a newly-minted living space comes with plenty of advantages, but it’s important to know what makes these properties (and the process of acquiring them) different. Here are a few things to know if you’re buying brand new…
You can avoid a bidding war
The truth is, trying to buy a home in a hot market can be discouraging. Having an experienced local agent on your side helps, but when you’re involved in a 12-way bidding war, nothing is certain. Buying a pre-construction property allows you to avoid the emotional ups and downs that come with that competition.
The payment schedule is different
A typical pre-construction deposit is 20 per cent, which is usually paid in 5 per cent installments. There’s no denying that’s a sizeable amount. That said, it’s also a flexible deposit structure, which can work to your advantage. The overall timeline will likely be anywhere from 18 to 24 months. Spreading out payments gives you more time to save—and tap into a line of credit if need be.
Your investment starts working for you right away
A brand new home is a passive investment, which means you can basically sit back and watch it grow. Given average historical appreciation rates in Toronto, the value of a brand new home will almost certainly rise as you wait to move in. If you buy in an area that’s gentrifying, you may be able to further maximize your return.
It’s going to be move-in ready
While a condo is almost always in turnkey condition, there are a lot of houses that are fixer-uppers. Often these homes require significant renovations, which can be costly and time-consuming. Moving into a brand new property allows you to eliminate the hassle—and start enjoying your new space right away.
You can customize it to your taste
For many buyers, a big part of the appeal of a pre-construction home is the ability to make it their own. From finishes to flooring to appliances, developers offer a variety of customization options. Just make sure you know what you’re paying for. Upgrades are a source of profit for developers, and the costs can add up quickly.
The inspection process and insurance are different
Every brand new home comes with a pre-delivery inspection (PDI). Your builder will provide your PDI, show you how your home’s systems work, and take note of defects if you notice any. You’ll also get automatic insurance coverage in the form of a Tarion Warranty. While it doesn’t cover everything, it can provide peace of mind.
Looking for a brand new home?
If you’re interested in a pre-construction property, you’ll find no shortage of options in Toronto. You can start your search by delving into some of the latest projects right here.
Don’t forget that an agent who knows local pre-construction—from the timelines you can expect to the city’s most reputable developers—will be your most valuable resource.
Looking for the best real estate company to meet your needs in Toronto? Come see what the agents at Harvey Kalles have to offer!
