There are a number of ways to get investing in real estate, but pre-construction real estate is one of the fastest growing with some of the fastest and highest returns.
There are any number of reasons why investing in pre-construction real estate is something to seriously consider. Pre-construction condominiums are some of the hottest pieces of pre-construction real estate on the market today. You can find them just about anywhere, however there are some key locations that are experiencing a preconstruction real estate increase due to the higher demand for housing in these areas. For the newest hot spots on the market, be sure to contact us!
The first reason why pre-construction real estate is something to consider as a smart way of investing is lower initial prices. The key is to purchase a preconstruction home or condo at the beginning of the sales launch. This is generally when the builder offers the lowest price. This will allow you to place yourself in a position to make a considerable return on your investment, appreciation potential.
Not only does getting in first allow you to buy a home at todays prices for future value, but you have choices and everyone loves the power of having choices! You can to choose from a wide selection of floor plans and often make changes to your unit and home. This can improve the value of your unit by differentiating it from others.
The great demand for condos in prime locations means that you don’t have to wait nearly as long to see a return on your investment than if you purchased a home or property post construction, which provides for faster returns. It is usually easier to rent or sell a never lived in condominium or home than it is to sell one that is older.
One of the best benefits of getting into pre-construction real estate is that you get the opportunity of instant equity. This means you do not have to wait a year or two for your investment to show a return on equity it does it right away from the time you start and sign the agreement of purchase & sale.
There are a number of incentives that can usually be had in the pre-construction real estate investment market. Often times, a developer will offer extras in order to keep investors or to gain the investors initially. These incentives can greatly increase the value of the real estate that you are looking to invest in. Some incentives may include upgrades, appliances, furnishes or direct credits off the purchase price. All of these incentives can add to the value of the property.
Waiting and the power of leverage. You’ve bought, my money is now invested and the waiting game starts. Closing is years out, and there are construction delays (which can be pretty common). The value of your condo continues to appreciate at a higher than average Toronto rate, giving you a very nice return on your 15-20% down payment.
Preconstruction condos are some of the hottest items on the real estate market today and Toronto is one of the hottest locations. If you’re considering investing in a pre-construction condo or home, be sure to contact us. We will help you research, determine your investment objectives and guide you to the right pre-construction project for you.