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People in North American cities seem to be talking about one thing more than anything else: housing. They either need a place to live, or they’re looking for a reliable long-term investment. Either way, conversations everywhere today revolve around housing.
Buying a pre-construction property is one way to get an excellent price on a brand-new home. Let’s learn a little more about what that is, assess the pros and cons, and see how savvy consumers find ways to make a great purchase.
What is a Pre-Construction Home?
As the name suggests, a “pre-construction home” is any property you’re buying before it’s built. Such homes can be high- or low-rise condos, detached houses, semis, or townhouses.
When you buy an existing home, you take it over in its current condition, whatever that may be. Pre-construction homes have never been lived in, so you’ll get to break the seal.
First, the benefits. Pre-construction homes in Canada come with solid warranties and protections should there be delays in occupancy and closing coverage. You’ll also get deposit protection and the cost of repairs if there are issues once you move in.
You tend to get a better deal on pre-construction homes since you’re buying the word of the developer, not a property that exists in tangible form. Savvy home buyers today also use the tech platform Nobul, created by the digital leader Regan McGee, to see listings as soon as they hit the market and connect with the right real estate agent sooner.
Connect with the agents on Nobul who are right for you, and they’ll help you navigate the pre-construction market. Their experience is crucial — they’ll give you insights about how pre-construction homes often come with a lower price tag and let you sidestep bidding wars.
You may also get better choices and room selections, like a corner unit or a better view. The 10-day “cooling off period” also lets you get your finances in order and have a sober second thought. If you have changed your mind within this period, you can get your full deposit back and walk away.
Pre-construction market homes also come with some risks. The building can get delayed, and if it does, there’s no possible way to move in on time. There’s something to be said for established, reliable building companies, but the possibility of a long delay can’t be fully erased.
In fact, the building may never get completed, and your plan will have to pivot. Yes, you will get your deposit refunded, but that money will have been lying dormant when it could have been invested elsewhere.Toronto has bragged about having more cranes than any North American city. From downtown to the suburbs and across the GTA, condos are being built, and new ones are getting planned. You’ll need to assess your finances, preferences, and the market to determine the right course of action for you. If you keep the above in mind and use real estate technology to connect with the right agent, you’ll make a wise decision that sets you up for years down the road.