Design – Rodeo Drive Condos
Investing in a Toronto condo unit can be done either by going the pre-construction or the resale route. Both options come with their distinct advantages and disadvantages and the choice ultimately comes down to the preferences of the investor.
Some prefer some of the advantages of purchasing resale condos. You are buying what you see rather than a floor plan and you can take over the property as soon as you close the sale. That being said, you are more likely to pay higher condo fees in an older building and pre-construction condos offer a more leveraged form of investing.
Advantages of Investing in Pre-construction
Investing in a pre-construction unit offers many advantages that a resale condo isn’t able to provide. The following is a collection of key reasons many are keen on investing in pre-construction condos in the GTA.
Image – B Side Condos
1. You get the final say
Pre-construction condos provide the option for investors to add their own input in the design plans and control over certain elements. With the ability to choose the appliances, finishing, cabinets, and flooring ahead of time, you can make sure you are investing in a condo that best fits the needs of the tenants you are trying to attract. By staying on top of these trends, you have the opportunity to make your Toronto condo investment as attractive as possible.
2. Better value per square foot
Only seldom is the price per square foot better in a resale condo. The value per square footage is typically better when investing in pre-construction condos. Not many other dwellings can offer a better value.
3. You can get the best price
Condos – especially in Toronto – will naturally appreciate over time. The best opportunity to unlock the best appreciation potential is by taking advantage of early launch prices. Additionally, builders will throw in other incentive offers such as the new Nissan Leaf offered to investors at the new B Side Condos in King West. By investing early, investors are able to get the best possible value from the unit.
Image – Park Club Condos
4. More time to save
Investing in pre-construction condos typically involves paying the builder in a series of small payments, instead of being asked to put down a large deposit right at the start. This offers investors more time and flexibility to make payments.
5. You get a brand new property
The moment the condo development is finished, you technically own the newest condo in Toronto. You are the owner of a trendy, modern and brand new property. Tenants will naturally be drawn to the modern amenities, appliances, and more that come with a new condo building. Additionally, you don’t have to worry about any issues potentially left over by previous tenants
Image – Park Club Condos
6. Lower maintenance fees
When you invest in an older resale condo, you are investing in an older unit. Older units tend to feature equipment and appliances that haven’t received some of the innovation and polish that new models have. New units come fully equipped with the latest pipes, electrical, paint, that requires less maintenance. Also, newer properties tend to invest in modern “green” technologies that usually result in lower utility bills as well.
Investing in Toronto Pre-construction Condos
Both pre-construction and resale have their unique pros and cons. Each option depends naturally on the preference of the investor. For more insight into investing in pre-construction condos in the Toronto area, stay tuned to the TalkCondo blog. In order to get more detailed information as well as the first access to some of Toronto’s best pre-construction condos, register to become a member of the TalkCondo Insider club today!