It seems that living in condominiums have become a way of life particularly for people who work in downtown offices of large cities. It has become so popular that some residential condominiums are nearly sold out even though they are still in the development phase. This is because even before the actual development of the building has started, a lot of pre-construction sales have already happened.
Buying those condos has emerged as one of the lucrative but somewhat risky, investments anyone can have. There are a lot of benefits when you buy them and one of them is the amount of money which you have to pay in contrast with an already completed unit.
Prices for the condos are but just a fraction of their actual value when completed. Once the real estate developer is finished constructing the condominium, the amount that was pegged during pre-construction could easily double and you could earn a tidy profit right away if you sold the unit that you bought upon its completion.
The other benefit to this type of sales is that you can actually alter the interior design of the unit you bought. This means that you can actually have your own design incorporated in the interior of your residential condo unit. You can change the wall panelling, flooring, and can even reposition some fixtures like the bathtub if you bought the unit during pre-construction phase.
Though there may be a lot of benefits that can be gained in choosing to buy a preconstruction condo unit, this is also a risky investment because you would have no way of predicting what will happen in the future. The biggest downside to this kind of investment is the delay that may happen during the construction phase. You may find yourself waiting for several years before you can actually live in the condo unit that you bought.
Pre-construction condos Toronto can be good investments but before you buy one of them, you should first study the project carefully to avoid any regrets. Another thing that you must consider is that you got to have a place to stay while waiting for your condo unit to be finished because you will be looking at more than two years for the construction to be completed.
Buying pre-construction condos was one of the most popular things to do just a few years ago during the 2003 to 2004 heat of the real estate market. There are tons of people who made millions of dollars building and selling pre-construction condos... and many that made hundreds of thousands buying these condos and then renting or selling them.
However, many lost it all when the market bottom fell out.
But these days with the economy showing some strength, there is an opportunity to purchase pre-construction condos... although the game plan has really changed. No longer is this going to be about short-term profits, but long-term profits.
Pre-construction condos have the potential to be a great investment. Here's what typically happens... the building will have the project slated for construction to the point where they are most likely never going to kill the project.
So the builder makes their money and initial investment back when all the units are sold and it's in their best interest to presell so they can calculate their profit and know that the project will be successful. In order to get interest on a piece of property that isn't even built just yet, they will sell them at significant discounts compared to what the price will be when they are finished.
That is your opportunity as a buyer to purchase a property as a discount to market value and when the condo is complete... you'll have an immediate spike in market value and you'll be sitting on equity from the start.
Currently with the real estate market hopefully turning around, this will begin to really present itself as a way for you to be a smart buyer and drastically bump up your net-worth.
You should however only buy a condo with the intent on either renting it out long term or living in it yourself. That way you can be sure that the entire property will become a real success and you will eventually be able to take a nice chuck of your money out of the property.
Another really nice benefit of buying a pre-construction condo is the ability to customize it more. You can usually work with the builder and have some customizations with the bathrooms and kitchens done. This is usually a great opportunity to make the property more you!
So you can see how the pre-construction process typically works and you can see that there are many benefits to buying a pre-construction condo. Just make sure that you really do your research. And whatever you do, don't let the potential for some profit blind you to other considerations that will impact the final decision.
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