Interest Free Capital Appreciation – one of the best reasons for buying a pre-construction condo as an investment is you temporarily get to own a condo before the building is finished without incurring any of the high ongoing expenses of owning one. After you make the down payment for securing your pre-construction unit, it normally takes 2-5 years for construction on the new building to be completed. During this very lengthy time prior to closing, you’ll still own that unborn condo, enjoy 2-5 years of capital appreciation on your new property, but incur no mortgage interest charges along the way, saving you tens of thousands of dollars. This isn’t the case with buying resale condos which require a mortgage and full down payment to close and incur interest charges from day one.
Modern Design – in the past few decades society has changed greatly. The “Leave It To Beaver” days of the single income family with a homemaker mom living in large detached houses in the suburbs with a golden retriever, a picket fence and 2.2 children are largely gone. Today, people are staying single much longer, getting more post-secondary education, getting married much later in life (if at all), having fewer or no children, have larger discretionary incomes, want to live in urban centres whenever possible, and overall have different lifestyles. These societal changes have resulted in the surging popularity in a relatively new type of property best suited to people’s needs today: condos.
With all this in mind, today’s condos are designed with highly efficient use of space considering their typical small square footages, offer open layouts, and have great building amenities such as large theatre rooms, party rooms, and fitness facilities. Even the most common condo amenities are simply unaffordable for detached home owners to have in their own homes.
Warranty Program – In Ontario, all residential property builders must be registered with the Tarion Warranty Program for new construction homes. Tarion offers one of the best, most comprehensive warranty coverage programs for new condos in Canada. With Tarion, new condo buyers benefit from deposit protection if something goes wrong with the project so they will get their money back in full if need be. Tarion protects you against delayed closings or occupancies on your unit without proper written notices from the developer, so you’ll know exactly when you or your tenants can move in. Tarion also covers you against defects in work and materials in your new condo, and any major structural defects as well.