The Positive Side Of Investing In Preconstruction Condos
The positive side of investing in preconstruction Mississauga units is that you can use your finances to buy a condo. When buying a new condo, you should build a reserve fund, or money set aside for unforeseen costs, of at least 2% of the condo’s value. Researching the builder and his track record is also a good idea. It would help if you also learned about the local economy and the city’s plans for the neighborhood.
Pre-construction condos offer a great opportunity for those interested in purchasing a home at a discounted price. These units are reserved while the building is being developed. Once construction is complete, the unit is transferred to the home buyer. Pre-construction condos are usually distributed in four phases, with each stage’s exclusivity decreasing as the condo’s cost increases. In addition, the down payment is divided into separate payments during the construction process. Once the property development has begun, home buyers can move into their new units and enjoy the benefits.
Increase your return on investment:
The main benefit of buying pre-construction condos is that they can increase your return on investment when you decide to rent or sell them. Because you don’t have to compete with other buyers, you can get the best value for your money. Additionally, the price will increase because the unit is in a newly developing neighborhood.
Low down payment:
For first-time buyers and those who want to purchase their first home, a low down payment on a pre-construction condo is a big draw. Often, this type of investment will require only a 20% deposit. Moreover, the deposit will be staggered over a year, with 5% due upon signing and the remaining balance due upon occupancy. Some builders may even offer this option at the time of purchase.
Long cooling-off period:
When investing in preconstruction condos, it is important to consider the cooling-off period. This period will allow you to review the terms of the contract, do due diligence and consider whether you are making the right decision. In addition, this period gives you a chance to negotiate more favorable terms. For instance, you can ask for a cap on the development levies.