Top 10 Things To Know About Buying A Pre-Construction Condo in Toronto
Buying a pre-construction condo in Toronto city is overwhelming. There are so many things you should be aware of. We’ve listed the top 10 for you. Take a look!
- HST Costs.
When buying a Pre-Construction Condo, you’ll have to pay a certain amount as the harmonized sales task (HST) with the purchase price.
- 10- Day Cooling-off Privilege.
Owning a condo in Ontario means that you have the privilege of rethinking your decision with the 10 days cooling-off period. If you change your mind within these 10 days, then you can cancel the contract and get a full repayment.
- Interim Occupancy
An interim occupancy period is something that every new pre-construction condominium buyer has to deal with. Even if your Condo is up and ready to move in, it might still take a while before you can actually occupy the property. The interim occupancy period is the time from the official occupancy date to the day you’ll actually move in. You’ll have to pay your builder a certain amount as an interim occupancy fee as if you were a tenant. So watch out and start saving up for this extra expense.
- Developer Records
You should be absolutely sure of your property developers before you invest even a single penny. Hence, it’s important to do thorough research to know about your developer’s history, authenticity, if they have any ongoing lawsuits, and much more. It’s good to get some customer feedback from other buyers. You can also lookup the developer online to get maximum details.
- Pre-Sales For Better Deals
Toronto’s real estate market has some of the best pre-sale deals that you could surely benefit from. The prices of the condos will be as lowest as it can get during these pre-sales. So this is when you can bag the best deal.
- Possible Design Alterations
Let’s start talking about the things that you should be cautious about. You can’t be absolutely sure of anything when it comes to pre-construction properties. Your builder could make changes to the designs and you wouldn’t even know until you move into the place. So make sure to keep a track of the development of your property.
- Closing Costs
Once the property reaches completion, you can move on to closing and finally get your hands on your dream property. As you near the closing date, you should be prepared for the additional closing costs that you’ll have to deal with. Being a first-time owner of the property, you’ll have to spend a sum on these closing costs.
- Possible Floor Plan Alterations
You can’t always trust your builder’s word. Especially when it comes to the floor plan. There’s no point in dwelling over the varied floor plan after you move in. So it’s important to be absolutely sure of the floor plan of your property and keep a track of the same as the work progresses.
- Delays in Completion
When opting for a pre-construction condo, you should be prepared for the wait. Your builder might not have the property ready by the date promised. So it’s important to have a backup plan in case the date extends.
A resale condo will cost you around 5% down payment while just the first instalment for a pre-construction condo will cost you the same. You’ll have to invest a total of 15-20% down payment to grab a hold of the property.