The good news about investing in pre-construction condos versus resale condos is that, for a change, time is now on your side.
When buying a pre-construction condo you can use the benefit of time by quickly grabbing something that immediately gets your attention, then taking extra time to later confirm your decision, without the risk of losing any money or the unit you have selected.
In these scenarios, you have a legally protected time based rescission period (10-day cooling off period) to consider and finalize your decision. It starts when you sign and submit the initial purchase agreement. This means that you can tie up a unit you like, and then really start analyzing the details to determine if it’s the right purchase for your needs. During the 10-day period, if you change your mind for any reason the developer will simply release you from your contract, no strings attached and no fees incurred.
However, just because you can change your mind without any repercussions, it doesn’t mean you shouldn’t be properly prepared before you start making selections. There are a lot of variables that should be considered to help you make both a great selection and buying decision.
Here are some points you should be considering ahead of time;
- Which locations interest you? Do some initial online research. Here is an example of a search using com, for new condos priced between $500,000 – $600,000, in the Yonge and Eglinton area of Toronto.
- Start thinking about the type of condo project you like. Are you going with a luxury project, or do you have a tight budget and you just want to get into the market with a small, functional condo unit?
- Consider the length of your condo investment. Are you planning on assigning your contract to someone else before the project is registered or are you buying so that you can rent it longer term and benefit from property appreciation?
- Look into quality real estate representatives to represent you. Selectively chosen companies such as Condonow; who work directly with developers and Platinum Agents can get you the Platinum or VIP access to units before the project opens to the public, when pricing is lowest and there is much more available selection.
- Have a chat with a mortgage broker so that you can get a feel for what your condo budget should be. There’s no point in buying a condo for $600,000 when you will only qualify for a mortgage to buy a $450,000 condo.
- Start reading up on the pre-construction condo buying process. It really is different from buying resale properties (not in a bad way, just different), with its own procedures and vernacular.
Following through on these items should not only help you with making a decision, it should help you in making a great real estate investment choice.