Where is Pre-Construction Condominium Investing Popular?

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Question: Where is Pre-Construction Condominium Investing Popular?

Investing in pre-construction condominiums is available throughout the world, however, it has become increasingly popular in the Greater Toronto Area in recent years. This is due to:

  • Financial regulations imposed on developers means they HAVE to pre-sell 70-80% of the building before they can build. This means that investors are able to take advantage of current market pricing for product delivered some time in the future.
  • Investors are able to invest with low deposits (15% to 20% in Canada as opposed to 50% to 75% in the U.S.A.)
  • Huge opportunity for leveraging and “interest free investing” for the duration of construction
  • An increase in quality of construction and amenities
  • Toronto is currently going through a major growth spurt that investors are able to capitalize on.
Roy Bhandari