6 Things to Know About Buying a Pre-Construction Condo in Toronto
Written by: Erica Mary Smith
Posted on: November 12, 2015
With the number of pre-construction condos in Toronto skyrocketing, there’s no better time to purchase the right condo unit. The real estate market is showing no signs of slowing down and there are more pre-construction condos to choose from than ever before, with luxury options in every part of the city. Pre-construction condos offer buyers the newest, most in-demand condos at the best rates on the market, but buying a pre-construction condo does differ from the typical condo-buying process. There are some special considerations that need to be taken into account when purchasing a pre-construction condo.
Here are 8 things you should look into before you purchase your own condo unit.
Developer Track Record
You should always research the reputation of the condo building’s developer. A developer with a poor reputation can turn your dream condo into a nightmare situation. Look into their past projects and see if you can speak with someone who purchased a previous pre-construction unit from them. Also, speak to board members who worked with the developer to get their opinion.
A lot can change between the time you purchase a pre-construction condo and the time you move in. Along with researching the neighbourhood and determining if it’s a good fit for you, speak with local neighbourhood associations and councillors for the area. Find out what changes will be happening in the neighbourhood, including more developments. For instance, a planned building construction could end up ruining your condo’s view.
While pre-construction condos are often offered at better rates than other condos, they also typically require a larger deposit. This can be as high as 15-20%, with a large amount paid on signing for the unit. However, payment options can wildly differ. Make sure you understand the paying process the developer requires and have a real estate professional help you out.
Try to determine how likely it is that the condo development will be completed on time. Pre-construction condos can be delayed or set back for a number of reasons. While you should have a plan in case the condo isn’t completed on time, you should also assess how construction is progressing. Look into the developer’s past projects. Also, find out when the drop dead date is for the condo, which is the date after which developers will have to compensate you for any delays.
When your condo is finished, there is typically an “interim occupancy” period in which you can move in before your occupancy date without officially owning the unit yet. However, if construction isn’t completed on time, some developers will try to push back your occupancy date. Make sure you have a real estate professional who can help you understand the intricacies of your occupancy dates.
The most important thing when signing on or purchasing any condo unit is to have a broker or real estate professional who can represent you and ensure you receive a good deal. Look for real estate professionals who have experience with condo projects in Toronto, specifically pre-construction condos.
Condo Chicks from Stomp Realty Inc. is a dedicated team of realtors who are behind some of the most prestigious and prominent condominium sales in the Greater Toronto Area. We take pride in negotiating on your behalf to represent your best interest. For more information, please call us at 416-366-3033.