What To Know Before Buying a Pre-Construction Condominium in Toronto
Navigating your way through the Toronto real estate market is no easy task. Whether you’re looking for a condo or a bungalow for sale in Toronto—how do you ensure that your financial decision will make sense in the long run? And what should you know about purchasing a pre-construction condominium?
A new condo is a popular choice for many property buyers. If you’re in the market researching Toronto real estate prices, it’s worth knowing the tips and tricks of the property market in this city.
Understanding the Costs
You’ve probably heard news of the Toronto real estate bubble before. Condo prices can fluctuate immensely, especially in major cities like Toronto. However, affording one actually isn’t too far-fetched for most buyers. Prospective clients should research the details regarding cost when it comes to the condo market.
For a pre-construction condo, the down payment is typically much higher than on other types of sales. You can expect at least a 20% figure initially, but later costs are likely more manageable as a result.
Other expenses to take into account are:
● Property taxes
● Legal fees
● Land transfer taxes
New condos in particular may require the following additional costs:
● Occupancy fees
● Home warranty plans
● Utility hook-up
Remember to budget properly for your new purchase. Not all costs apply to all types of sales, so talk with your builder about extra fees and financing.
Choosing the Property
You can read Toronto real estate news to get an understanding of how the market works, but true experience comes from searching for new condos and reputable builders.
Pre-construction properties always have an inherent risk associated with the transaction. When considering a builder, do your research to determine how often they landed their deadlines. What were their maintenance fees? Were they transparent with their agreement terms?
In worst cases, a company may choose to cancel the project. You will be eligible to receive your deposit and payments back to some extent. Failing that, Tarion protects you up to $20,000.
Don’t forget the location of the property as well. Toronto is one of Canada’s most active condo markets, so expect prices to be higher than in other locations. As demand rises, you may see your purchase as an investment you can profit off of in a few years.
Review Your Agreement
Whether you’re looking for a condo or a detached house for sale in Toronto, you should always review your purchase agreement carefully before signing anything.
This document tells you your rights as a buyer, the rights of the builder, and details regarding your condo project. Consult with a lawyer that specializes in pre-construction condos to make sure that you are legally protected.
For example, what is the cancellation policy? The Condominium Act allows for a 10-day period where you can cancel your agreement for any reason.
Pre-construction condos have unique risks that buyers need to be aware of. Developers may find issues securing the funding for the project or obtaining legal approvals from government institutions. Get this information before you finalize a deal.
Doing your research is more than just searching for Toronto real estate on Reddit. Tarion, a home warranty program created by the government of Ontario, offers an online resource known as the Ontario Builder Directory.
This website gives you the information you need when buying a newly-constructed condo, including:
● Name of the builder
● List of convictions
● Number of units
● Current status
● Project cancellations
You can also use the search function to determine whether a company has lost its registration in the past. Knowing who you are dealing with ensures that you aren’t wasting your time during your search.
Looking to Make Sense of the Toronto Real Estate Market?
Tomycity.com can help you find the perfect pre-construction condo in many of the hottest neighbourhoods around Toronto and the GTA. Our team has exclusive access to some of the biggest condo construction projects on the market.
Get in touch with our team today and we’ll help you find the perfect condo to call home.