Reasons Why Most People Prefer Buying Pre-Construction Condos

Reasons Why Most People Prefer Buying Pre-Construction Condos

There are many reasons why most people love to buy pre construction condo in Toronto. Some of these reasons include Location, Tax benefits, and a One-year warranty. In this article, we’ll outline the advantages of buying pre-construction condos. Interested? Continue reading to find out why you should consider buying pre-construction condos! Weigh the pros and cons of each before making a decision.

Tax benefits:

There are tax benefits to buying pre-construction condos. For starters, these units are usually cheaper than those in existing buildings. In addition, many new condo developments benefit from tax abatements that lower monthly property taxes for a predetermined period. However, if you are looking to buy a condo as an investor, it’s worth looking at the tax benefits of buying pre-construction units.

They have a good location:

Despite their relatively high price tags, pre-construction condos offer several benefits. For one thing, they generally include all utilities, allowing buyers to save money on installation. However, these units are still not without their drawbacks, so buyers should research the location and size of the building before making a purchase. Even if you can purchase pre-construction condos at an affordable price, you should consider these factors carefully.

Minimum down payment:

If you consider purchasing a pre-construction condo, you should understand that the minimum down payment is significantly higher than the required down payment for a resale property. While 5% to 10% down payments are normal, many developers require 20% of the purchase price. A deposit structure allows you to pay this down payment over several months. This structure is also referred to as a payment plan. Some developers offer pre-launch deposit structures where you pay a small amount upfront and then the rest of the down payment over five years.

Profitability:

The profitability of buying pre-construction condos depends on the architectural design and construction process. Pre-construction properties are usually offered at huge discounts because developers need the money to continue construction. Moreover, buyers can also benefit from a better price than the current appraisal. Pre-construction condos are recommended to both homebuyers and investors. Listed below are a few advantages of pre-construction condos:

Stability:

There are many benefits of buying pre-construction condos. The value of your unit will likely increase over time. You will be able to capitalize on the latest trends. Pre-construction condos will also allow you to take advantage of discounts and other incentives.