People buy pre-construction condos primarily for two reasons, the first being the appreciation potential as an investment and the second being the pleasure of living in a brand new home where there is no worry about potential fix-ups any time soon. However, before you go ahead and sign off on that new pre-construction condo, make sure that you have considered the seven tips below:
1. Research the builders
The very first thing you should do is a bit of research. You want to make sure that you have found a good reputable builder. Investing money in something that has not even been built yet is a big risk, since many things can go wrong, such as the time frame set to complete the project to the approach taken when unexpected problems come up along the way. Therefore, you want to focus on the reputation of the company.
2. Talk to experienced buyers
In addition to your research you should ask around other people who have bought a pre-construction condo, word-of mouth beats any marketing campaign. They will tell you about all things they have experienced from the good to the bad. Ask them specifically about the fees, connections and who they would recommend.
3. Check out the location
Take a look at the Mississauga real estate area you are interested in. Although you may not know what the actual area will look like until the building is completely finished you can get a pretty good idea by looking at the amenities nearby such as schools, shopping malls, public libraries and community centers.
4. Know your fees
Upon the purchase of your pre-construction condo, you will have to pay a 15 percent deposit of the whole amount and it is usually paid within the year of the purchase divided up into three installments. Upon the completion of the building you will have to pay pay closing costs such as land transfer tax, development and legal fees.
5. Study your floor plan and inspect your unit
Make sure that the floor plan meets your needs. At this point you can still make changes to it and upon signing the papers you have 10 days to pull out for free if you have had a change of heart.
6. Buy early
Buying early allows you to acquire the condo for a cheaper price. This is simple supply and demand at work, the more unit are sold the more expensive the remaining condos within the building will be.
7. Understand the risks
Understand that you can still lose your money even if you carefully select the perfect builder, location and floor plan, as there can always be unforeseen events that can cause the development to delay or shut down.