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7 Things You Need to Know Before Buying a Pre-construction Condo

7 things you need to know before buying a pre-construction condo

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Published date:

August 11, 2021

Last updated date:

August 11, 2021

By Manny Manriquez

Many people take interest in availing of a pre-construction condo either for the convenience in location or the money that it gives off in return. It is one of the forms of passive income that many people can certainly benefit from. However, what comes with buying one? In this article, we are going to discuss the things that you need to know before buying a pre-construction condo so that you will know whether it’s a good investment or not.

It’s cheaper than a ready-for occupancy unit.

A condo unit in itself is expensive enough. And polishing it and designing it however you like makes it much more expensive. So before you yield high returns from buying one, you still have to spend more than what you think you will be gaining in its first six months. Basically, a pre-construction condo is raw and bare. It doesn’t have any decorations at all whatsoever, may it be in terms of tiles, cabinets, and others. So, you have to take care of them yourselves. That is why interior designers are in demand. However, as compared to polished condos available at the market, it is way cheaper, and buying it would be a smart move. Once pre-construction condos are move-in ready, their prices will be so much higher. So if you want to save a significant amount of money on property, a pre-construction unit is a wise investment if you have the time to wait.

You have access to world-class amenities.

Some condos up for construction these days have their groceries and gym within the building only. So, you have the chance to get easy access to more facilities that you can deem as important when you choose to live there. Apart from that, if you decide to put the unit for rent, many people will fight over it because of the things that put it on a pedestal. So, it is a win-win situation for both you and whoever wants to avail of it. Prep-construction condos are also up for changes. When that happens, developers can change their minds about the things that they want to include in the building. So when you develop rapport with them, you can have a talk and converse about the things you wish could be there in the place. You should do your own research. Sometimes, after you scroll through different social media platforms, you will be biased about the condo units that you want to be getting. But when you actually get to the market and look through those that are available, you may or may not end up being disappointed. Many units up in the market are small for what it’s worth. So, the condo of your dreams out of Pinterest may or may not come true. Apart from this, your options may be limited because some are already reserved before you even went there. To ensure that you will have a unit that’s worth every penny you invest in it, we suggest you look the developer up. You can go through their past works so you may gauge whether or not their style will click or resonate with you.

The interim occupancy and closing.

Interim occupancy is when you finally lay your hands on your condo unit’s keys. However, it is only for temporary use. Basically, interim occupancy is that period where you can live in your condo once done, even if you haven’t completely made your payment yet. That means that you can already live there even if it’s not yet fully yours legally. This period often lasts as long as the building hasn’t been registered yet— that’s why you don’t legally own it yet, either. But even if it’s still not yours completely, you’re still obliged to pay for the fees it comes with. The payments are cheaper than they would’ve been if it’s completely yours, though, because the principal payment for the mortgage is still not starting at this point. On the other hand, closing refers to the time when the building has finally been registered legally. At this point, you will finally have the title to your condo; it’s all yours already. At this time, too, you already have to pay for the mortgage payment and for the rest of the payment that your deposit has not covered.

It’s located in a prime area that can generate more income.

Pre-construction condos are a steal. Most of them are located in a prime area where many people would desire to occupy should you choose to put it up for rent. Also, pre-construction condos are like a blank canvas. You can do a lot of things that you want to do with it so you can turn it into a beautiful art piece, more than what those expensive units look like. So, it can be a magnet to more people who want to avail of it. Apart from that, pre-construction units are mostly located at a place where you get easy access to many establishments that are imperative for your daily life. This includes a grocery store, a hospital, a pharmacy, and a school, among many others. With a prime location, it’s so much easier for people to access essential and luxury goods and services, as well as professional opportunities. Let’s take Canada, for instance. Toronto is teeming with pre-construction condos because it’s a highly desirable area for many people, including families and young professionals. If you want to learn more about the pre-construction condos in the Toronto area, CondoWizard is an excellent source that will provide you with the information you need.

Consulting a real estate agent will be a smart move.

If you think that you no longer have to pay for anything after you fully paid for the condo unit, then you’re most certainly wrong. There are taxes and even elevator fees that you have to pay for, apart from the maintenance fee of the unit alone. The payments don't just end on the closing of the deal, and the wait doesn’t only end at the processing of papers. However, it is better than buying a polished condo unit because when you buy a pre-construction condo, you are availing yourself of one that can be better than polished ones. Real estate agents help you save even more from the finances that you have to face. Basically, what they do is to take care of the technicalities, and your only duty is to provide the money he or she will need to process your papers. They sometimes negotiate, too.

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