Pros and Cons of Pre-Construction
Are you considering investing in real estate?
Pre-construction might just be the perfect opportunity for you to see some significant gains in property value!
Especially in undervalued areas or places undergoing massive growth with solid infrastructure investment, pre-construction is an excellent chance to get in on the ground floor at a relatively low premium.
In fact, there are several areas in the Greater Toronto Area and beyond that are currently experiencing incredible growth. And with pre-construction, you can potentially reap some fantastic returns on your investment if you know what to look for!
PROS:
Own 100% of an asset for 20% or less and you will have time to save for the down payment: With pre-construction, you can buy a property for just a fraction of the total cost and have time to save for the down payment.
You get a brand-new unit with new appliances, new finishes, new amenities, etc. Pre-construction properties offer the latest amenities, appliances, and finishes, which can be a big selling point.
There are low maintenance fees and minimal wear and tear since everything is brand new: since everything is brand new, you're less likely to experience maintenance issues or wear and tear, which can save you money in the long run.
Lastly, there is potential for large value increases in undervalued areas or areas experiencing significant growth: Pre-construction properties in undervalued areas or growing areas have the potential for significant value appreciation.
CONS:
Longer wait times (up to 4 years) compared to resale properties and uncertainties about complement time. They can take up to several years to complete, which can be a downside if you're looking for a quick move-in.
Delays might be due to multiple factors such as materials, labour, and organization. Projects can be subject to delays due to various factors, such as labour shortages or material availability.
Lastly, another factor is that Developers have an interest in completing projects quickly to minimize costs, which may
It is important to weigh the pros and cons carefully before making a decision between pre-construction and traditional resale properties.
Feel free to contact us for anything related to real estate!
Hope this guide was helpful! Please do not hesitate to contact me at 647.930.1888 or email info@timsold.com for all things real estate.
