Buying a pre-construction condo means making a huge financial commitment. Before you buy one, there are many things to think about; firstly, the building isn’t even complete yet, and you’re basing your purchase on an estimate of what the finished product will look like. Secondly, when you buy a new home, you’re responsible for everything from maintenance costs to landscaping and other common expenses. In order to make an informed decision, it’s essential to consider these things when purchasing a new pre-construction condo.
There are a lot of common misconceptions regarding the buying process for an apartment that can cloud the minds and hearts of many. We will reveal the truth about some of the more well-known misconceptions regarding purchasing the pre-construction condominium.
1. They’re not affordable
The notion that the average couple or individual cannot afford to buy a condominium located in the downtown area of Toronto or the GTA is not the case. In reality, buying condos (in some instances) is a much more affordable and appealing alternative to buying a freehold property, particularly in the city’s core. According to the National Bank chief economist, Stefane Marion, “The single-family market is becoming impossible to afford, and that’s true in markets like Vancouver or Toronto.” This has led many first-time
homebuyers to the market for condos that has become less expensive for them due to the abundance of available units, as reported by The Globe and Mail.
2. You’ll need a lot of time to allow the condo to be ready.
There is a widespread belief that buying an unfinished condo will age you and the condo will not be finished. This is another of the myths and realities about purchasing a condo that is pre-construction in Toronto.
Sometimes, it is true; however, it’s not an issue that is common in the least, mainly if you research and purchase from a trusted developer so that you don’t have any issue.
Sometimes delays are unavoidable and are not under the control of the developer. But, the top developers view this as an opportunity to complete the process in time.
3. You will need to deposit 20% in one go at the beginning
The typical deposit for a new construction condominium located in Canada amounts to 20% of the purchase cost for Canadians. International buyers generally pay 35 percent. In other words, if your home is worth $500,000, 20% is an impressive amount.
Reputable and high-quality developers do not require this amount of 20% all at all at. Instead, you must make the payment over the course of time, often in 15 months.
Your deposit is secured under the Condominium Law. But, you should ask the Toronto realtor about other rules and regulations that are used to protect against fraud and guarantee the complete safety of your investment.
4. You could lose your deposit If the Developer is in bankruptcy
The bankruptcy process was common in the past, particularly for developers, but the chance is no longer a concern. This is why Ontario authorities have been regulating Tarion Warranty Corporation. Tarion Warranty Corporation. The corporation protects all prospective Toronto buyers of homes.
So, suppose you’re buying a home for the first time. In that case, the final price includes the Tarion Warranty Corporation enrollment fee that provides deposit protection for up to $20,000 and a certain amount of interest accrued.
5. You Don’t know what is waiting for You
If you purchase an existing condo from an established developer. In this situation, you won’t have to be concerned about the finished house because it will be up to your standards.
However, before purchasing these houses, it is essential to look at floor plans and finishes and renderings. If you are interested, don’t hesitate to ask questions.
At the sales office, you will also look at other projects by the developer and discover which one is suitable for you.
5. There’ll be a surprise Bill at the end of the day.
When purchasing a condominium, make sure you know that the final price is not limited to the mortgage payment and the deposit. Other costs like property taxes, maintenance fees, utilities, etc. These are all things to think about.
Additionally, there are closing costs for condos being constructed prior to construction, including the land transfer tax meters, legal fees, warranty costs, development levies, and administrative fees.
In addition, development levies were also the subject of discussion in the past. Developers must contribute a specific amount of money to municipal governments to fund infrastructure projects in cities.
If you’re purchasing an existing home, it is important to inquire with developers how they handle these costs. A trustworthy developer will not conceal these costs and include additional costs into the cost of the home.
7. All condo fees are in the same way.
If you’re looking to purchase a condominium, It can be tempting to look at the costs of condos from different properties. Be aware that the inclusions in maintenance costs vary. Some condos provide all utilities, but some are only hydro, a few offer cable TV as well as separate charges for lockers and parking. Be aware that, while the majority of condo fees depend on the area of the building, certain buildings (usually more recent ones) have the same charges regardless of whether the unit is large or not. apartment which is a benefit for larger units but an unfortunate fact for smaller units.
8. The developers ignore their clients
This is true for sure developers; however, Canadian trusted developers will not figure in the group.
It is important to ensure that there’s a helpful team waiting to assist you if you encounter any issues during the process.
It’s also important to determine which company will be your manager once you have moved into.
There are many misconceptions and facts about purchasing an apartment that is pre-constructed in Toronto and most of them are true.
The difference is evident when you select an experienced developer when you purchase the pre-construction Toronto condo. If you choose this option then you’re more likely to have any issues.
The article discussed eight commonly-held misconceptions and facts about purchasing the pre-construction of a condo within Toronto. But, the best suggestion would be to talk with a Toronto realtor to assist you in the process.
Also, having a look over an overview of Toronto marketplace for real estate online can assist you gain an idea of the current Toronto properties, no matter if they’re constructed or are in pre-construction homes.