6 MYTHS - PRE-CONSTRUCTION CONDOS

Learn about 6 Common Myths with Pre-construction Condos. Please SUBSCRIBE and LIKE this video if you gained value from it and learned something new!

Watch how I break down every aspect of pre-construction homes into individual episodes for you to learn from. Check out the Playlist for all videos.

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Resale home purchases often need 20% down in a single shot in to get your mortgage. With a pre-construction condo, you get the flexibility of a scheduled deposit structure to pay your deposit, and this schedule can span over a few years.

You’re also buying a brand new product and your home will be covered by a warranty provided through Tarion. This warranty covers deficiencies found during and after your pre-delivery inspection up to a certain amount of time.

During a pre-delivery inspection, if you aren’t the first person to bring it up, there’s a chance the issue will get ignored completely. So your attention to detail is important when you’re going through the delivery inspection with the builder. Pre-construction condos can be more affordable than some other options, but it doesn’t mean it they’re inexpensive. Invest your time inspecting the unit and call everything out to bring out the very best in your investment.

Since pre-construction condos are brand new, you’re likely going to avoid the hassles and costs of problems typically found in older homes that haven’t been properly maintained.

Deposits are not always expensive and at least 20% It depends on the purchase price of the pre-construction condo unit. They can be lower or higher and will always depend on the deposit structure created by the developer. Each deposit is then spread out over periods that can last up to several years.

When you purchase a pre-construction condo unit, there’s a chance the developer will not complete the project. The Tarion Warranty Program protects you in the event of developer insolvency, providing a deposit protection of up to $20,000.

You’re purchasing a proportionate share of the building space. The land value itself should appreciate over time, which also means each individual unit will appreciate over time.

A developer markets various floor plans to potential buyers during the the sales phases. They’re more or less accurate representations of what the buyer will get, but purchase agreements will typically include conditions for variances.

The monthly occupancy fee goes directly to the developer, and it is similar to paying rent and the amount might seem arbitrary. Developers are under strict rules on how they calculate occupancy fees to prevent them from earning a profit.

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Other Pre-Construction Playlist Videos:

4 Stages • https://youtu.be/EKbVh_mhIL0
Investment Strategies • https://youtu.be/I2b8BplA3MA
Deposit Structure • https://youtu.be/I2b8BplA3MA

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References:

Tarion “Warranty Program” • https://www.tarion.com/homeowners/your-warranty-coverage/warranty-outline
Tarion “Occupancy Fees” • https://www.tarion.com/news/286/interim-occupancy-explained
blogTO “Construction cranes” • https://www.blogto.com/city/2018/08/toronto-has-highest-number-construction-cranes-north-america/
Livabl “8 Toronto condo projects that stalled in 2019” - https://www.livabl.com/2020/01/here-all-toronto-condo-projects-stalled-2019.html

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Tags:

#condomyth, #preconstructioncondo, #torontorealestate, #canadianrealestate, #realestateeducation, #torontorealtor
Disclaimers:

At the time of production, Fred Tam is a Real Estate Salesperson with Right at Home Realty Inc., Brokerage in Toronto, ON. Fred’s videos do not necessarily represent the views and/or opinions of RAH. The purpose of Fred’s videos are to educate you and help you make sense of the real estate process. If you have questions about home loans, real estate, taxes, finances, real estate law, insurance, professional trades, or any other services where you live, you are advised to reach out to the appropriate professional for further counsel about your own unique situation.

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Thanks for watching and committing to your success in real estate!

Видео 6 MYTHS - PRE-CONSTRUCTION CONDOS канала Fred Tam