Things To Know About Buying A Pre-Construction Condo In Toronto
As a realtor, you will be tempted to go ahead and spend your money in purchasing a pre-construction condo. However, there are few important things to be aware of as you make the decision.
Invest in a builder
Before you invest in a building, you will need to invest in a builder. You will be taking a risk by investing your money on a pre-construction condo. This is why you should invest in a reliable builder and minimize the risk. Before committing to buy property, you may take a look at the history of the builder and see the reputation. You should also check and see whether the builder has been adhering to development plans on time or not. Based on this, you can make a decision on whether to go ahead with the builder or not.
Don’t forget the cooling off period
According to the law in Ontario, there is a 10-day cooling off period on all the new condo purchases. After you buy the condo, you will have 10 days to decide how you are going to sell it. During this time period, the price of condo would fluctuate based on the demand. However, you can reserve and lock in the price of the condo during this time period. Then you can make sure that the builder will not be able to sell the condo to anyone else or make changes to the price. Hence, you should think about getting the most out of 10-day cooling off period.
Focus on closing costs
To calculate ROI accurately, you should be mindful about closing costs as well. This is where you should do your due diligence. You should work with a real-estate lawyer and carefully review the agreement you have with the builder. Then you can make sure that you are not getting tricked by closing costs. You can keep the final closing costs minimum and get the maximum return out of your investment.