Frequently Asked Questions

As the real estate industry in Canada is rapidly growing, you must be among the many people who are yearning to be homeowners or at least engage in real estate investments. Before you become a homeowner or investor you must first have a clear plan. A clear plan means that you should which type of house you are going to purchase and the location of the house. These two factors play a great role in determining the amount of money you will pay and also the kind of life you will enjoy once you become a homeowner in that particular area. If there is one type of real estate property that you should be thinking of now is the pre-construction condos. Pre-construction condos are increasingly becoming more popular within various cities in Canada because of the benefits that come along with them. If you are planning to acquire a home then you should go for a pre-construction condo because it is indeed a good investment. You can prove this anywhere even if it means investing in pre-construction condos in Toronto. Reasons that prove pre-construction condos are a good investment are as follows:

  1. Lower prices

Low prices usually attract many potential buyers in all types of houses be it pre-construction, new construction, or used houses. In general, pre-construction condos usually cost less compared to pre-construction townhouses, pre-construction semi-detached and pre-construction detached homes. This gives pre-construction condos an upper hand when it comes to investment. This kind of property cost less and it is, therefore a very good investment for anyone wishing to try a hand in real estate investments. If you have some cash somewhere you should not think of the other types of pre-construction houses but this alone because this is where your financial needs have been considered. The best and most affordable prices are here in pre-construction condos and you can confirm that by putting your money in the investment. So if you are an investor who is looking forward to saving some coins, pre-construction condos are the right deal for you.

  1. Plenty of amenities

Having amenities within your residential place is something that can light up your daily life while living in such a place. In most cases, condos are known for having much more when it comes to amenities. They have everything you need to spice up your day when feeling low. Just imagine swimming right outside the premises, working out in the gym just a few steps away from your door, and much more. That is just the tip of the iceberg as far as amenities found in a condo are concerned. Like any other condo, a pre-construction condo is no different because once it is complete you will get to enjoy it since amenities will be at your disposal. You can say again that pre-construction condos are a good investment. You choose to invest in one of the pre-construction condos in whichever place you desire and that is how you will realize it.

  1. Extended deposit structure

Investing in a pre-construction condo seems to be a good investment and there is much in store for you to enjoy. An extended deposit structure is among the things you could enjoy if you invest in a pre-construction condo. What this means is that you will have the opportunity of paying the deposit in installments and so you don’t have to worry about where you will get the whole amount of the deposit to pay at once which is mostly 20% of the total price. You will be able to pay the deposit it bits after some months up to one year and even more. Just imagine getting one of the pre-construction condos in Toronto and paying the deposit as slowly as you can. Isn’t that a great thing for you? Just try it and you will surely see for yourself.

  1. You can make more with less

Once you invest in a pre-construction condo, you stand a better chance of making more with less. In simple words, it means that you will make great profits out of a small amount you used to invest. For instance, when purchasing a pre-construction condo, you will pay a 20% deposit and the remaining 80% can be financed by the bank through a mortgage loan. In the real sense, you will have invested 20% but when it comes to returns you will enjoy the returns of 100%. Don’t you think this is a good thing that can push you to invest in the ideal market of pre-construction condos in Hamilton and other great cities?

  1. Low maintenance and repair costs

No one likes being bothered with maintenance and repair costs and therefore it can be a great reprieve if you get a place to call home which has less or no kind of such costs. You can only avoid such costs if you buy the right property. The right property in this case is a pre-construction condo. Generally, condos have fewer maintenance and repair issues because much of the things are taken care of by the management. The best thing is when you invest in a pre-construction condo because once it is complete, you are going to be the first person to live in it. being the first person to occupy the house, means that you will find it new without any faults and therefore you will not incur any cost on repairs. For a long time, while living there, most of the things will be in the right order meaning that you will spend less or no money on maintenance. That is surely a good deal for you and you will experience it if you choose to grab the investment opportunity.

Conclusion

In summary, the above reasons or factors are what puts pre-construction condos in a better place when it comes to investing in the right real estate property. For sure you do not need to look elsewhere when you can enjoy several benefits when you invest in pre-construction condos. You already know the right investment for you and therefore what remains is for you to go for it. There is a lot more to unleash if you put your money into this kind of investment. A lot of pre-construction condos including pre-construction condos in Hamilton are out there waiting for you.

Every investor or buyer in the real estate market always wants to go for something that will not hurt their pocket in any way. This means that properties with lower prices usually attract many potential buyers who are always keen on making savings because spending too much is never their option. So for you to be able to grab a cheaper deal, you must have done your due diligence and be informed of what exactly will cost you less. In most cases, pre-construction homes always turn out to be the real deal when talking of cheaper real estate properties. With a very reasonable amount of money, you can be able to get yourself a very affordable pre-construction home in an apartment that will later turn out to be the best place you have ever lived in. Pre-construction homes are cheaper and more affordable and various reasons prove they are cheaper. You can have a close look at the following reasons that prove pre-construction homes are cheaper and you can afford them at any time.

  1. Low purchasing price

The first thing that proves to you something is cheaper, is always the price that you see listed in the market. When you compare the price you see with the price of another commodity that is the same as one in the market and you find it is lower, that’s eventually how you get to know it is cheaper. Generally, pre-construction homes cost less than old or existing homes in the market. These low prices registered by pre-construction homes are usually partly occasioned by the need of developers to urgently sell the developments so that they can fund other projects that they are working on. Most developers are always working on more than one project and therefore needing more money to complete other projects is not something new. If you even compare the prices of pre-construction homes with that of old homes in various cities across Canada, you will notice the difference. The difference that you will see is that the prices of pre-construction homes will be lower than that of old homes. Old homes usually experience bidding wars which are mainly caused by the inflation of prices by the sellers because they are always seeking to gain big profits. Pre-construction homes do not experience bidding wars because they are usually sold at fixed prices. Pre-construction townhomes in Brampton can help you realize this.

  1. Low maintenance and repair costs

Low maintenance costs are also a factor that proves pre-construction homes are cheaper. As you know, all pre-construction homes are usually assigned to the owners when they are pretty new and in good condition. Worrying about repairs and maintenance is always somehow a thing of the past when it comes to these kinds of homes. The maintenance and repair costs are normally low simply because it is new and everything within the house is in perfect condition and right place as well. You cannot expect to start doing repairs in a house that is just a few months old. When compared to old homes, you will find out that in the case of old homes, you will find several repair issues that you will have to deal with if you were to buy such a home. In an old you may find several repair issues that need to be taken care of before you move in. these issues may include broken windows, electrical faults, and leaking pipes among others. If you add the costs of doing all these repairs to the purchasing cost of the house you will find that it will be more expensive. Not forgetting the maintenance costs that are usually there waiting for you to sort them out, an old home will in most cases be above a pre-construction home when it comes to costs. So if you were to make a choice, you should pick a pre-construction home because you will not worry about maintenance and repair costs.

  1. An extended deposit structure

Pre-construction homes can be very affordable more than you think. They usually come with an extended deposit structure that comes in handy especially when you do not have enough funds to start your purchase journey. This extended deposit structure allows you to pay the deposit in bits of small amounts usually at given periods. You can pay like 40% of the deposit at the beginning and then pay the remaining in installments of 30% at intervals of like 3 months. This eases the burden on your side because you will have more time to look for money to complete the deposit and you will already have secured your unit. Isn’t this cheaper compared to other properties where you have to pay the deposit at once? Of course, it is cheaper because you are paying less and in bits, so you won’t feel stressed with the burden of looking for finances within a short time. You can also enjoy a discount from the developer and that makes it even better. The developer will give a discount to motivate potential buyers to invest in their project. This kind of scenario gives you every reason to believe that pre-construction homes are cheaper and you can prove that by even trying your luck in pre-construction townhomes in Brampton.

Conclusion

In conclusion, you must have now seen how pre-construction homes are cheaper or rather why they are considered cheaper. They are the kind of homes that will always mind your pocket in whichever situation you are in. Whether you have enough money or not, you can still get in the race of purchasing a pre-construction home because there are mechanisms in place that will enable you to achieve that and live in the apartment you deserve. You do not need to waste your money on anything else but invest in a pre-construction home that will see you enjoy living comfortably wherever you are. Don’t ever say you didn’t know because the opportunity is right here hanging in the air and it’s up to you to grab it.

Are you in need of securing a precious home for yourself? If you need one then you have a clear plan as to what kind of property you want and of course where it is located. Type and location matter a lot because they are the basis of what you will spend so that you can call yourself a homeowner. Perhaps if you are very familiar with the real estate industry in Canada and other places, you must have decided to invest in a pre-construction condo keeping in mind the benefits that come along with it. You have to understand all the steps required to buy a pre-construction condo before you can move forward and purchase it. If you would like to know how you can buy a pre-construction condo, check the below steps that elaborate on how you can go about it right from the first step until you move into your finished home or become that admired investor in this business.

  1. Put your finances in order

There is absolutely no way that you can purchase a pre-construction condo without having money. This, therefore, means that you have to get your finances ready and if you do not have then you have to look for a way that will enable you to get the cash needed. Getting a loan from the bank is one of the most popular ways that potential buyers use to generate money for buying real estate properties. You can get advice from the lenders on how much you can spend on that particular project. This should and will always be your first step as you look forward to owning one of the pre-construction condos in Richmond Hill or even other cities like Toronto and Hamilton.

  1. Choose your new condominium

After making sure that you have the finances required, the ball will get rolling. This means that the real process on the ground will now begin. Here you can have an agent who can help you to go about it. You will be required to choose the condominium of your choice so that it will end up being your dream home or investment once construction is complete. You will review various floor plans and prices so that you can choose what suits you. You have to also look at other factors like the materials and color because they matter a lot as far as having a good and comfortable house is concerned. The issue of materials and colors is something that should be looked at in the early stages before it becomes too late to make changes if at all you need to make some changes here and there.

  1. Pay the deposit

This will come after you have chosen the right condominium for yourself. Paying the deposit will take place after you have had an agreement and signed the deal. This deposit will open the way for the process of construction to set in. Once you pay this amount which could probably be 20% of the entire price, everything will be good to go. Remember as is the case in pre-construction properties, you will be able to pay the deposit in bits, meaning that you do not need to panic if you don’t have the whole amount to pay at once.

  1. Construction begins

This step will come after you have signed and made the deposit. The construction of the pre-construction condo will begin and therefore what you will have to do is relax and wait for the completion. Every step in the construction process means that you will be getting closer to moving into your house and living comfortably in a very welcoming environment. During this time of construction, you will be able to get information on the progress from the developer. In this way, you will be able to follow up on the construction process step by step. It is during this construction stage that you will even be able to gather funds to complete paying the deposit.

  1. Conduct pre-closing inspection

After the construction is done, you will have the opportunity to inspect the condominium. This inspection is meant to help you ascertain that everything is in the right order. You cannot just get into the house without the developer being sure that they have done everything right and to the buyer’s expectation. No one of course loves to have a substandard property and therefore you are possibly not an exemption. You will check every aspect of the house and confirm if you are satisfied. Your satisfaction will mean a lot to the developer as far their reputation is concerned.

  1. Closing

This is the stage just before moving into your newly constructed condo that had been in the pre-construction stage for a while. Submission of documents takes place at this stage and your lender is entitled to inform you of what is required. Some of the things required may be W-2 forms, recent pay stubs, and credit history among others. You will be informed of the summary of closing costs which are payable ahead of time. This will enable you to know what you will have to pay when the closing date sets in.

  1. Finally, you move in

Moving into your dream house is the final stage of this process. After everything is put in the right place, you will now be able to start living in your new home. You can’t imagine the feeling you will have after waiting for a while and then you get into it.  Once you move in, you will be entitled to enjoy all the benefits that come along with a condo.

Conclusion

You don’t have to get anything wrong in the process of buying a pre-construction condo when you can access information such as the one you have seen above. You have to get it right and make sure it is right all the time if you are seeking to be an investor in this area. Just imagine after going through the above simple steps, you will be a homeowner. What you have to do is to make sure that you have the right amount of money with you and also get the best developer of course with a good reputation.

Are you not sure if pre-construction is a good investment or not? Worry no more because you are going to get the answer. Investing in pre-construction properties is something that is on the rise in the real estate market. What you have to know is that it cannot be a booming investment and be a bad investment at the same time. This, therefore, answers your question, but you still need to see tangible reasons that will prove to you it is indeed a good investment that is worth every penny of yours. If you haven’t thought about it then this is the right time to make up your mind and invest right away because there is no time to waste when it comes to this kind of investment. Some of the reasons that prove pre-construction is a good investment are as follows:

  1. Great resale value

Value is an important thing when it comes to pre-construction properties. These properties usually have a high resale value which is something that can prove it is a good investment. The pre-construction homes go for a lower price than the post-construction homes. Just because you bought a pre-construction home at a lower price, you can be able to reap highly when you decide to sell because they appreciate at a faster rate. You will sell at a high price because of the high demand that is in the real estate market. Generally, in many Canadian cities, there is a high demand for housing which prompts the prices to be high. You can put your money in this kind of investment and be sure of getting high returns. This should surely motivate you into investing in pre-construction. After hearing this you are not supposed to doubt this kind of investment because it is a good one and probably what you need.

  1. You can save money on maintenance and repairs

This is another reason that proves pre-construction is a good investment. If you invest in a pre-construction home, you will be sure that you won’t be disturbed by hefty maintenance and repairs cost for a while. You will be relieved for a while because when pre-construction homes are completed, they are usually new, and probably you will be the first person to live in them. Being the first person to live in means that you will find everything in good condition and so you will not incur any cost in doing repairs. Maintenance costs are usually low and this means that you will be able to save a lot as far as finances are concerned. You can therefore use the money to do other important things for yourself and your family. If this kind of investment can help you save a few coins then it is a good investment that you should perhaps try a hand in.

  1. You can enjoy first mover advantage

When you decide to invest in a pre-construction property you will be able to see the advantage of being a first mover. As a first purchaser, you will enjoy this advantage in the sense that pre-construction homes have fixed rates and therefore you will not experience inflation of prices as is the case in old houses. Sellers of old houses usually inflate prices so that they can be able to gain profits. Don’t you want to feel this advantage? Take this opportunity and invest in pre-construction properties and you will realize why investing in such properties is considered a good investment.

  1. You can tour/visit the development

Making a tour or visit to the development site means a lot because you can be able to see exactly what you have invested in. this tour will enable you to see the development plan before you can make a decision. You can see the progress of the development over and over as time goes by. Pre-construction properties offer you the chance of visiting the development you have invested in. other properties usually don’t give you an opportunity of visiting the development site or house. You just rely on the photos that you see. Relying on photos cannot enable you to make choices well especially when you hurriedly want to buy a home amid a bidding war. This is what you will face when you are buying an old home. To avoid all these, you just have to invest in pre-construction homes because you can see everything from the start till the end as far as construction is concerned.

  1. Financial feasibility

Pre-construction properties are considered to have financial feasibility because of one thing. That one thing is that, once you purchase your unit, you will not be required to pay the mortgage until the property is completely registered. This means that you have the freedom to take other loans and do other things as you await the property to be completely registered so that you can take a mortgage loan to finance the remainder of the property’s price. This is surely something nice for you. You are also given enough time to save and clear the deposit installments. If you still don’t see pre-construction as a good investment then you are losing something valuable.

Conclusion

You now have to get going as far as investing in pre-construction properties is concerned. You just have to do it because you cannot afford to let go of such an opportunity. This is where you can be sure that your money is safe gaining profit. Even if you seek advice from any real estate expert, they will always tell you why you should consider pre-construction at any given time. Indeed it has more than what a real deal can offer and so whenever you get a chance of investing in pre-construction properties, make sure you utilize it to the fullest. Don’t hesitate even for a second because when you do that, someone elsewhere is getting into it with immense energy. You will surely give testimony once you decide to stand out from the rest and go for this exciting investment.

It is also the joy of every potential homeowner to move into their own home either for the first time or not. Moving into a new construction home is usually something to treasure especially after going through a hot bidding war and successfully emerging a winner. You can’t wait to get into that beautiful neighborhood and have new and different people around you. If you are desperately looking for a place to call home, you better do it quickly so that you can get to go through and understand how and when you can move into that new construction home that you have purchased. It doesn’t matter if it is an apartment or what kind of house. It can take up to 6 to 8 weeks to move to a new construction home. You will only move into a new construction home after various steps have been keenly followed. Those steps are as follows:

  1. Get pre-approved

This is the first step after you have spotted a new construction home that you sincerely want to purchase. As a potential home buyer, you have to at least get preapproval from a lender. This mortgage preapproval will show what the lender is more than willing to offer you so that it can enable you to buy your dream home. The willingness of the lender to offer you a mortgage loan will depend on your tax returns, credit, income, and employment. These factors will largely enable the lender to make an informed choice as far as lending you money is concerned. After the lender is satisfied with your records, they will agree to offer you a loan and thereafter you will be given a preapproval letter. This is not the end because if you feel like going for another lender you can still do so and compare the options. In some cases, the builder may opt to give you a lender that will make it easier for you to purchase your home.

  1. You have to hire a real estate agent

After the preapproval, you will be sure of how you will purchase your homes as far as funds are concerned. The next thing to do now will be to hire a real estate agent. The real estate agent will be of great help to you in this journey especially when you want to buy a production or semi-custom home. In this kind of home, you will need to negotiate with a sales representative from a builder. The real estate agent will therefore help you go through the negotiations. Seeking the services of an agent with experience in new construction investment will therefore come to your rescue in the best way possible and everything will run smoothly.

  1. Know/ work on your timeline

Time is of the essence. Here you will have to be sure of the time when the house will likely be ready for you to move in. If it is a semi-custom house, it is more likely to be reliable when it comes to timeline, unlike a custom one which may not be reliable to the extent that you need. In the circumstance where you are selling a home whether in a flat or apartment so that you can buy a new one, you will need to be in close contact with your Realtor, builder, and lender so that you can efficiently manage that transition.

  1. Conduct research on builders and neighborhoods

Researching builders and neighborhoods will be a very important move because will help you know a lot. You can check the track record of the builders so that you can be sure of who you are dealing with. You can as well find their online reviews and you will use that to decide whether you want to get into a deal with them or not because you will already have a glimpse of who they are. You can also try to find out more about the neighborhoods. You can check for things like amenities, crime rate, availability of schools and hospitals, transportation, and economy among others. All of these are important as far as your stay in that area is concerned. You have to at least be sure of what you will get when you start living in the new area because this is your lifetime investment.

  1. Negotiate and review your options

This is the stage that will determine how much you will pay to acquire the home. Of course, you will always want to pay a little less and that is where negotiations come in. it is here that you will be able to keenly analyze your option. You will be making sure that whatever you are paying for, is indeed what you need and the price is right. You will check on factors like exterior and interior details. This means you will check the designs put in place in that house and that applies to the case of custom and semi-custom houses. Once you are satisfied and feel comfortable with everything, you will arrive at the final price and payments will thereafter be made so that you can fully secure that unit in the best flat of your choice.

  1. Finally, schedule inspections

This is the last stage in the process. After everything is done you will need to inspect to make sure that everything is in the right order. You will hire your inspector who will do the job for you. It is at this stage that you will also be able to review your new home warranties just to be sure of what is covered and for how long. After completing this stage, you will be free to move into your new construction home and enjoy it in that elegant apartment.

Conclusion

In summary, what is highlighted above is exactly what will take place before you move into that new construction home that you have been desiring for a long time. You have to know all those steps so that when buying and planning to move into your new home, you will be sure of what you will have to do. If you have already spotted a house that you want to call home, get ready to go through the above steps and you will finally be at home.

End-users receive no HST rebate. The price includes HST. Investors, however, are a different story. Investors are required to pay the HST upfront and will be reimbursed, usually within 4 weeks after providing the lease agreement and the submission of the application to the CRA.

Maintenance fees cover heat and air conditioning, as well as the building insurance, the upkeeping of common areas, but DOES NOT include hydro, water and cable/internet fees.

That depends! Maintenance fees are often tied, or at least guided by the rates of inflation, making sure that the building can consistently cover upkeep and services. That fund can often protect against unexpected costs in the building like maintenance as well. But a lot of factors can affect the funds a condominium retains for maintenance. The age of the building is a critical factor – the older a building is (especially after 10-20years) as well as proper fund management and the construction of the building itself, can all greatly affect the expenses involved in maintenance. While there’s no hard-set rule or law stipulating exactly how much the fees can rise, checks and balances exist in the form of the condo board, which is made of residents and typically have a great deal of sway, and have a vested interest in keeping fees low.

The standard warranty in Ontario, Tarion has been in providing new home warranty protection for 40 years. It’s structured to protect consumers of new homes and make sure that builders uphold provincial legislation. Tarion acts to educate new home buyers and owners about their warranty rights and responsibilities, while fairly and impartially making warranty decisions and facilitating disputes between homeowners and buyers. They work to investigate and prosecute illegal building practices and set standards to raise accountability in the Real Estate sector.

There are a few other costs you should keep in mind. Land transfer tax, development levies, legal fees and administration fees. This amount usually sits under 3% of the purchase price. All fees and costs are due as of the final closing.

Development levies are essentially government charges that fund growth-related capital costs like childcare, fire facilities, police, emergency medical services and roads. Whenever a condo is built, new pipes, trees, even schools will be built around them to support the population. The developer passes a small amount of those costs on to the eventual owner of the condo.
An important part of your agreement is to set a cap on these levy charges so that you as a homeowner are not on the hook for too much.

Upon signing a purchase agreement, most developers require a Mortgage Pre-Approval Letter (or MPA). These are acquired from your bank and need to be received by the developer within 60 days. This is something we specialize in, and can help arrange – but confirmation of your mortgage must occur three months (90 days) before interim occupancy can begin.

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