Before you even think about investing in preconstruction properties, you have to first think about the place, or to be more precise: the city.
So why Toronto?
Well, Toronto is one of the most diverse city on the planet with over 140 languages spoken. It’s estimated that over half of Toronto’s residents were born outside Canada, and despite its complex makeup, Torontonians still get along.
When the weather is fine, Toronto is a blast: a vibrant, big-time city abuzz with activity. When the weather is cold and it is snowing- it is still a beautiful sight to see. The city lit up in colorful lights, something just like a winter wonderland picture.
Also, some of the world’s finest restaurants are found here, alongside happening bars and clubs and festivals.There is a fresh international buzz about Toronto.
It could be the influx of new residents from across the globe, or it could be the influx of new business. In terms or retail, food and tech companies flocking into the city we have no shortage of migration. Either way, this is a city that is waking up to its own greatness.
Toronto is truly a home away from home for those that were not born in this beautiful and lively city. You will always find restaurants, people, festivals that cater to your taste, lifestyle and walks of life in Toronto.
So why wouldn’t you want to settle down here? Better yet, why wouldn’t you want to invest in a pre construction property in this great city?
Now before you ask why wouldn’t it be better to buy a resale rather than a preconstruction, let me give you all the facts:
Investors feel that they can get the best returns if they buy a pre construction property rather than a resale.
There a couple reasons why:
- Pre construction allows you to purchase brand new properties that are often priced higher than existing resale properties once built. This gives investors a chance to make significant profits by purchasing below resale buildings or houses. This effectively allows you to “buy at a discount and sell at a premium”.
- Pre-construction condo deposit structures (typically 15% to 20% over 12 to 18 months) make it easier to purchase. Since you only need to pay about 5% of the total price on the day of signing, this wouldn’t be the case if you bought a resale property. This makes it so much more affordable for people that do not have a million to 5 million to spend immediately in 1 day.
- You are able to purchase and invest with low deposits (15% to 20%) allowing for big opportunities to leverage your money. Lastly, There is no mortgage or loan required during the duration of construction – this is almost like getting an 80% interest free loan for the duration of construction on an investment asset.
This is why investing in preconstruction yields a high return to pre construction buyers and why more and more buyers are finally understanding all the advantages and making to decision to invest.
Please note that not ALL pre-construction condos and houses are great investments so it is important to understand how to pick the projects that will help maximize your returns. For this reason, you definitely must pick your agent wisely.
Picking an agent to represent you:
Angelika Bekman is an experienced and dedicated real estate agent who has been in the Toronto real estate industry since 1996. She specializes in pre construction properties as she feels that it is the future of toronto real estate- and it gives the most profit back it’s buyers.
She has studied the Toronto market for years, and combined with her day to day and client to client experiences within this industry, he has great instincts. By combining this intuition with a commitment to service, she has achieved great trust and respect from her peers and clients.
She is always upfront and honest with his clients is always ready to listen to your exact wants for your dream home. If you don’t already know, she will help you figure out a great match for you that matches your financial and any other needs you may have.