It’s already September! Where did the summer go?! Despite everything going on, I’ve been busy working with clients day in and day out. Now that construction has been allowed to resume, the condo market is roaring back to life with lots of projects getting started, as well as a lot of others finishing. So far, we’ve discussed how to assess timeliness of buying a home, the seven questions you need to ask yourself in assessing your readiness, how to pick your buying agent, discussed buying vs. building, and the pros/cons of resale homes vs. condos. This week, we’re discussing buying pre-construction condos!
Festival Condos at Vaughan Metropolitan Centre: Modern Living, Redefined!
A perfect example is the Festival condos at Vaughan Metropolitan Centre; they’re a master-planned vision in connected urban living which cater to an emerging sector of condo buyers: commuters. While much of the condo market in Toronto is sold on TTC access, whether by subway or streetcar, the needs of non-Toronto condo buyers are a little different. What integrated hub development living like Festival does is opens opportunities by affording better access to the surrounding regions.
An address like Festival literally opens up new areas of opportunity to you, whether you drive or not. Transit-oriented development is the future, but it’s not just the future of major city development. Interested to learn more? Send me a message!
Why Pre-Construction Condos?
This week, we’re going to talk about a very common situation I deal with for my clients: buying a pre-construction condo.
This is a very popular choice among my first-time buyer clients for a number of reasons. The first of which is that this option often provides the most upside in long-term appreciation. Simply put, getting in early enough on an early introductory price instead of waiting can save you thousands of dollars between pre-construction and the closing date. And with that, could add even more value to the unit when you decide to sell.
Next, the deposit structure of pre-construction condos can offer the most flexibility for first-time buyers. Depending on how early you get in, you can often pay your deposit over a matter of months or years. This is excellent for my first-time clients transitioning from renting because it ensures they don’t have to completely overhaul their life to facilitate the purchase.
Lastly, many condo developments provide rental guarantees. What that means is that you don’t necessarily have to wait until the entire development is complete before you can move in. In this instance, you’re able to make arrangements with the developer to take occupancy of your completed unit prior to the building’s closing date. This helps create better certainty for my first-timers who have to give advance notice prior to moving. And it’s not like you’re moving into just any unit, either. You’re moving into YOUR unit.
Pre-Construction Condos: The Key Points
To get the most value from this situation, you want a great realtor on your side for so many reasons. Those reasons are the purpose of this week’s blog!
1. The Builder Pays the Agent
In these situation, the commission/fee to the agent is paid by the builder. Filling a development as full as quickly as possible is in the best interest of the developer. Realtors help facilitate this. This is a great way to save money on the overall purchase.
2. Realtors Can Help Negotiate Your Agreement
Just because the builder pays the realtor’s fee doesn’t mean the realtor works for the builder. Quite the opposite! The realtor works for you as their client! There are a number of fees developers typically charge buyers, and most people don’t possess the savvy or know-how to negotiate them on their own. These can include costly development and assignment fees. They can also help you negotiate your deposit structure, which can save you money in the short term! While not all builders are negotiable with their fee structure, having a savvy professional in your corner to help you go over the terms and conditions involved in the purchase can save you thousands of dollars both upfront, as well as in the long run!
3. Realtors Often Have Access to Incentives the General Public Does Not
Working closely with the developer often means that real estate agents have access to various perks. This can include parking spaces, storage lockers, and sometimes can even include ‘decor dollars’ which can be used towards appliance and fixture upgrades.
The Bottom Line on Pre-Construction Condos
My first-time buyers often love pre-construction condos for the flexibility they offer in transitioning into ownership from renting. Not only can condos be on the more affordable end of the spectrum of home ownership, getting in early on a pre-construction sale can save you thousands of dollars across the time you own your condo.
My experience working with first-timers on pre-construction builds has helped me get so many people into their very first homes, and it is always so gratifying.
If you’re considering buying your first home, but are on a limited budget, you could find some of your best options to be pre-build condos. Want to know more about Festival at Vaughan Metropolitan Centre, or just pre-build condos in general? Let’s Talk!