There are several advantages of purchasing pre-construction condos in Canada. These benefits are cost, value, desirableness, and capital growth potential. Let’s explore them in more detail below. You can also find a good pre-construction condo builder in your area. This will ensure a quality unit that meets your needs. Moreover, pre-construction condos offer more customization opportunities than new condominiums.
Freedom to customize your unit:
One of the biggest benefits of purchasing a pre-construction condo is the freedom to customize your unit. While you may be able to change the paint color or replace a few of the appliances in an old unit, this type of condo has the edge over newer units in the pre-construction stage. Also, because pre-construction condos have not yet been completed, you’ll likely be able to get a unit that meets your specific requirements.
The desirability of buying pre-construction condos is often based on the fact that the market is in its infancy. While the price may be a bit higher than that of a completed unit, it will be lower than that of a completed one. Some people simply prefer new things over old ones. The rising popularity of certain neighborhoods also contributes to the desirability of buying pre-construction condos.
Capital growth potential:
Investing in pre-construction condos is an excellent passive investment for first-time home buyers. The condo market has increased exponentially recently, and many investors have become interested in real estate. Unlike the stock market, where businesses can go bankrupt, you are in control of your portfolio and can sell it when the market is at its highest. In addition, investors who buy pre-construction condos can enjoy unique tax benefits. Only 50% of capital gains are taxed. Additionally, you can deduct the mortgage interest and property taxes.
Reduce stress level:
If you’ve ever been worried about the stress of purchasing a new home, then buying a pre-construction condo may be right for you. This type of property is typically protected from material changes, but you should still study the sales contract and be prepared to negotiate changes if they do occur. You’ll pay monthly maintenance fees, which are intended to cover the costs of exterior maintenance, security, and common areas. Developers want to attract as many buyers as possible, so they advertise these fees several years in advance. However, they don’t always reflect the actual building costs.