Discover All Of The Advantages Of Purchasing A Toronto Pre-Construction Condo Assignment.
When it comes to real estate, we always urge our investors to make sound long-term decisions. One of them is purchasing a pre-construction condo with the goal of selling it on assignment. For the same reasons we warn them not to sell a pre-construction condo through assignment, you may be tempted to acquire a condo assignment.
THE CONDO ASSIGNMENT PROCESS: WHAT YOU SHOULD KNOW?
A buyer of a pre-construction condo investment may opt to sell their contract with the builder before taking possession. They are selling their Agreement of Purchase and Sale with the builder to a new buyer because they do not yet own the unit. This type of transaction is known as an assignment.
WHEN IS A PRE-CONSTRUCTION CONDO ASSIGNMENT PERMITTED?
Assignments frequently occur when the original purchaser’s financial condition changes, they change their mind, or they just want to “flip” the property. Pre-construction condo flipping can be a tactic used by some investors to avoid paying closing costs and cash out before registration.
However, you should be aware of one restriction before making a purchase: all assignments must be accepted by the builder, and not all builders will agree. Some purchase agreements even include a “No Assignment” provision.
PURCHASE A NEW CONDO FOR LESS
As the buyer, you have the opportunity to acquire a product that is normally sold out at a price that is likely no longer accessible. The price per square foot should ideally be lower than pre-construction pricing today. You may not only buy a brand-new condo, but you can also get it at a price that no longer exists in today’s market.
MUCH BETTER NEGOTIATION POWER
Before registration, Toronto condo assignments can be sold/purchased at any stage. As a result, even a condo that is ready for its residents to move in still has some elements that need to be finished. Some amenities may not function properly, common areas may be unfinished, hallways may be taped for painting, and elevators may even be grounded in some cases.
As a buyer, with the building in less-than-perfect condition, all of these features offer ideal bargaining chips when it comes to price negotiations.
THE BUYERS HAVE THE BETTER HAND
After construction, it is fairly uncommon for investors who have been misled by their agents (or just want to cash out soon) to sell before taking ownership. This results in a large quantity of inventory in a building, giving purchasers additional options at a time when the project is still under construction.
Buying a pre-construction condo isn’t nearly as straight-forward as buying a resale condo. Remember that the person at the sales centre works for the builder and their job is to get the best prices and conditions for the builder, not for you. If you’re considering buying a condo pre-construction, make sure to contact our team prior of those decisions made. We have experience and knowledge, best incentives and offers exclusively for you.