So, the condo you live in is getting a bit old and tired. The time has come to look for a new place to live. You have a couple of options if you are interested in moving into another condo. You can take a look at the pre-built (used) condos in the hopes of finding one that closely matches what you have in mind. Or, you can take a look at the pre-construction condo projects on the market. If you truly want a home that is exactly what you have in mind, you will find it makes sense to find pre-construction projects when looking for a new home, and here are some of the reasons why.
You Have the Final Say
When you buy a “used” condo, you are stuck with the layout, the cabinets, the floors, and fixtures it comes with. That is unless you are willing to invest a small fortune in completely renovating the unit. On the other hand, if you invest in a unit before it has even been built, you get to have input in everything to do with the design of your new home. This allows you to decide the size of the rooms, how they are laid out, and what fixtures, cabinets, etc. are used. Most buyers love having this level of control over their new home.
You Get a Better Price
Most condo builders need money to get their project off the drawing board and into the construction phase. By buying your home before the first cement has been poured, the contractors are more likely to offer lower prices and lower down payments. At the same time, when you buy in early, you get the chance to buy at the lowest possible prices. The more units sold, even in the pre-construction phase, the higher the prices are going to climb, especially living in the Toronto area.
About that Down Payment
When buying a “resale” unit in Canada, for example, you will be required to come up with 20% of the purchase price in order to avoid paying for CHMC mortgage insurance. If the condo you are buying is priced at $250,000, you will need to come up with $50,000 the day you close. When you buy into a pre-construction unit, you can make your down payment in installments. For example, you can pay 5% up front and pay the rest installments. Remember, however; you must have the last 5% of the down payment when you receive the keys to your new home.
A Range of Incentives
One of the most popular tricks condo builders use to attract buyers is to offer a range of incentives. These could be in the form of upgraded appliances, a free storage unit or garage, maybe a discount on the price, or upgraded flooring. You never know what incentives may be offered but finding out is only a phone call away. These are only some of the many reasons why it makes sense to find pre-construction condo projects when the time comes to look for a new home.