1. Property Appreciation
Preconstruction real estate usually has a lower initial value than what the condominiums or property will be worth after it has finished. the goal is that your property should have appreciates overtime. This puts you in a good position to profit from rising real estate market before you even move in, and by renting that property, you not only gain a monthly income off your investment. At the end of the term if you sell the market usually will have shown some appreciation meaning you can earn additional amounts from the sale.
2. Time To Save For Your Deposit
when purchasing a new build condo, the deposit is between(15%-20%) are typically spread out. This means you'll have time to save up for the full deposit over a period of time, giving you the opportunity to plan and get your finances in order.
3.Having VIP Access
Getting in on the ground floor - If you are going to invest than the best time to do it is at the beginning. That is usually when the best deals are offered and you usually end up with a greater opportunity at a much lower price.
4.Take Advantage Of The Cooling Off Period
The cooling off period is 10 days after an investor signs the contract to purchase a preconstruction condo. so you can take time to think and contact your lawyer to ensure that you want to go with the purchase and you can opt out in this period with no repercussions.
5. Can Be Upgraded To Your Taste
You get to pick and choose the upgrades and finishes you like . Some of the options you will be able to customize include appliances, kitchen, cabinets, countertops and flooring according to your lifestyle.
6. Location
Location is an important bonus in buying a new condo. In many large urban areas, for example, Toronto or Vancouver, it would be tough to purchase a new single-family home in the bustle of the city. But with a newly constructed condo, not only are you in proximity to the city’s amenities, you are in a brand-new space that you can call your own.
The decision to buy a newly constructed or preconstructed condo certainly comes down to lifestyle, needs and priorities. By consulting a professional real estate agent and developing effective communication with your local builder, your decision will be the right one. Working with an agent will help guide you to a reputable real estate developer that has a past successful track record.
7.Leveraging
Another advantage to putting your money in pre-construction compared to other investment opportunities is that you can leverage limited funds for better returns. Investing in stocks or mutual funds only gives you a return based on the actual money you put down, but in real estate, you make the return on the entire value of your purchase, despite only paying an initial portion up front.
The difference between investment into condo versus investment into conventional financial products such as mutual funds, stocks, and RRSPs is that you have more leverage over your condo investments. In other words, the return on your mutual funds and stocks would depend almost completely on your principal, but real estate investments appreciate based on your property’s total value.
8. Incentives
While you might get upgrades to your investment on the inside there are another type of incentives that can really be of benefit. These incentives can greatly increase the value of the real estate that you are looking to invest in. Some incentives may include upgrades on counter tops, appliances or furnishings. These are usually separate from cosmetic incentives but can increase the profit you see from your investment.
9.First Occupant
Once completed, you will be the first resident. It doesn’t sound like a big deal, but there is something great about being the first occupant in a home. There are no skeletons in the closet, you could say. No other memories to grace the halls, just yours. There’s also no wear and tear on the home. Everything is fresh and, well, new.
Condominium-living has a wonderful sense of community. Everyone is in the same stage of moving and getting to know their neighbors. There is comfort and also excitement in knowing you are starting an adventure with a community of like-minded people. And remember, strangers are only friends you haven’t met yet.
10. Common Areas and Amenities
Lifestyle is an important consideration when purchasing a condo. There is much a condo can offer. Common areas and amenities such as work out rooms, pools, saunas, and social rooms are a big plus and in demand. When buying a condo, you are not just buying a house. You are buying a lifestyle.
Condo owners can relish in not having to shovel snow, mow the lawn, or tend to the grounds. They don’t have to worry about painting the stairwell or keeping the lobby up to date. Condo fees cover all these things, leaving owners the freedom to come and go in the security of knowing their property is well-tended. With new construction, you can also take comfort in know that the latest in security infrastructure will be in place. Security features are a major plus in knowing you and your property are well protected.
In new construction, those amenities and common areas are up-to-date, fresh and modern. They are sleek and in good repair. That is not always the situation with older buildings. Because condo fees play a role in the upkeep of those common areas, with new construction, you can take comfort in knowing there won’t be a big repair bill until well into the future. Your condo fees are predictable.
