Our Condo Pre-Contruction Tips
#1. EARLY ACCESS
Similar to the Stock Market, the Toronto Condo Market has initial public offerings (IPOs) or New Product Launches. These launches are held in stages, targeted to exclusive groups and offered at different price points at each stage. Our goal is to help you purchase at the best price point, floor-plan & exposure possible.
#2. PREPARE IN ADVANCE
The Toronto Condominium reasle market is growing and prices are up. Toronto's new construction launches usually sell out quickly. Current pre-construction unsold inventory is low. In Toronto some projects do not reach the general public. In light of this, it is important for us to do home work and due diligence with you. We recommend speaking us along with with your Mortgage Broker & a Real-Estate Lawyer that specializes in pre-construction well in advance so you can have a complete understanding. Meet with us to discuss the process and strategy so you are educated before stepping into a showroom alone without one of us at your side.
#3 LOCATION, LOCATION, LOCATION
What should you consider when thinking about neighbourhoods? Areas that will be considered up & coming. Neigbhbourhoods that are undergoing rapid growth & gentrification. Communities where demand for sales & rentals will be strong. A project that will attract end-users & quality rentals. Developments near or on transportation lines near commercial & office hubs are indicative future growth and expansion.
#4. ADVANTAGES OF BUYING PRE-CONSTRUCTION?
The Purchase does not show up on your credit bureau until closing. Greater leverage on your return on investment (ROI). Down payments can be spaced out to improve affordability so you can capitalize on a line of credit. While under construction you have no management headaches & your profit is passive. Once built, the suite is brand new, move-in ready & never lived in. Your suite & deposits are covered under Tarion Warranty. Generally, newer buildings have more contemporary finishes and better Energy Ratings.
#5. WHEN PURCHASING PRE-CONSTRUCTION Please CONSIDER some of the items we review with our clients:
We negotiate to reduce or remove any assignment fees. We attempt to get permission from the builer to permit rental during the Occupancy Period. We try to reduce or remove any associated fines, limitbuilder closing costs & reduce administration fees. We request on your behalf outdoor balcony measurements, architectural drawings, information about materials used for shared walls & line drawings. We inquire about the location of garbage receptacle & outdoor bins, along with the location of parking entrance & exist. We gather all informaton in regards to the maintenance fees, utilities & rentals Items if any.
#6. Marketing Is Not Always Reality
From model suites to renderings, websites, brochures and online virtual tours, each marketing tactic is created by many hands; artists, interior designers, illustrators, graphic designers and others. And, like any piece of creative work, there is plenty of room for interpretation. Take the model suite as an example, to show off the full potential of a building’s unit, the designer will be sure to include all the upgraded finishes, designer furniture, artwork, fine china, ambient lighting, area rugs, etc.
For this reason, unless the APS clearly spells out what will be included in the home, Tarion cannot hold builders responsible for expectations inflated by creative marketing alone. This is especially so when there is ‘fine print’ in the Agreement that makes it clear the builder has reserved the right to make changes.
#7. Ask The Right Questions At The Right Time
We will be there by your side to help you ask the right questions when you are touring model suites and reviewing brochures. Understand which finishing are standard and which require an upgrade, determine the size and position of fixed features like a kitchen island or supporting column. Ask questions you may have about the building’s amenities, the neighbourhood and so forth. Research your builder’s reputation and track record.
You can direct many questions to your sales representative. For questions specifically about your builder, start by viewing Tarion’s Ontario Builder Directory. For more tips on researching a builder check out our Top 5 Ways to Research a Builder blog or our The Top 5 Ways to Choose the Right Builder video.
#8. Let Us Help You Read & Comprehend Your Purchase Agreement Thoroughly
The only way to understand exactly what you are buying and what the builder can be held accountable to is by reading & fully understanding your purchase agreement. This includes the addendum clauses and the fine print.
The purchase agreement confirms the dimensions of rooms, cupboards and countertops as well as other details within your home. It also outlines what features are included in your new home and what may be excluded. Anything not specified in your purchase agreement cannot be covered by the new home warranty. We are here to help you navigate & understand your agreement.