The condo market in Toronto is extremely hot right now and for good reason. With a shortage of rental space, it is possible to get high-quality tenants and turn a tidy profit. Many investors are looking for resale condos but, there are some real benefits to investing in pre-construction.
Some people may hesitate to buy pre-construction because they must do so without seeing the finished product. They have only floorplans and concept pictures to go by. If you are willing to take that leap of faith however, the following are a few of the reasons you might want to give pre-construction another look:
- You get the final say over finishes and design elements.
When you purchase a condo before it is built, you get to have some say in features such as flooring, cabinets, and finishes. In some cases, you can even select upgrades to floorplans such as an ensuite bathroom and walk-in closets. And of course, all of this means that you can choose the features that are most likely to attract the type of tenants that you are looking for.
- You can get the best value.
Most times, the price per square foot is lower on pre-construction than it is on resale condos. In part, this is because it is simply easier to sell a property that is move-in ready than it is to sell one that may take months before it is finished.
Additionally, many builders will offer incentives to investors who get in early. This incentive can be features that will improve the value of the property such as free upgrades or finishes (such as granite countertops); or other items of value. (Some builders have even given away cars!)
- You have more time to save a down payment.
When you invest in pre-construction, the arrangement usually involves making a series of small payments to the builder rather than a large deposit. This means that you’ve got more time and flexibility to save up your down payment.
- Your property will be brand new.
New properties are especially attractive to potential tenants. With all the modern amenities and brand new finishes, your condo won’t be empty for long. Additionally, you don’t have to worry about the immediate need for repairs or maintenance or damage that may have been done by previous tenants or owners.
- Potential for Appreciation
Another advantage of investing in pre-construction is that the property is likely to appreciate in value while it is being built. This means that even before the condo is move-in ready, you are gaining equity from your investment.
Are you interested in learning more about investing in pre-construction or would you like some assistance in finding the best pre-construction property for you? If so, give us a call today and we would be happy to help.