Thinking of buying a new pre-construction home in the Greater Toronto Area? You’ve come to the right place. There are many reasons why a pre-construction home is the right move for you.
When buying pre-construction, you have to be thinking long-term. Depending on the housing type, it won’t be built for a year or two (sometimes three, four, or five years down the road). If you are planning ahead, this is a good route to take.
Here are a few of the top reasons you should buy a pre-construction home:
Most builders require a deposit at signing, and it’s usually somewhere in the ballpark of $5,000 to $10,000. Then the remaining 20% of the down payment you need is typically spread out over months, sometimes years. For example, you could buy a new condo, put $5,000 down, then owe the remainder of 5% in 30 days, another 5% in 180 days, 5% in 365 days, and then the final 5% right before occupancy.
This is helpful for a lot of buyers who can’t afford to pay 20% all at once. A disciplined saver could even write post-dated cheques without the money actually being in the account — it’s just a matter of having the money saved by the time that date rolls around.
If you buy resale, what you see is what you get. Some people like this aspect of buying a home that’s already built. The beauty of buying pre-construction is you get to select flooring, cabinetry, tiles, countertops, and other finishes. Most builders have standards from which to choose without any additional costs, and then there are upgrade options that cost extra. If you were to buy resale, you’d have to do a big renovation to select all these new finishes. You get the custom experience without the price tag.
Relationship with the builder
A good builder
will stay in touch with you and keep you posted on the development progress. New homes in Ontario have Tarion warranty coverage, so if you ever have any issues in the first few years of living in the home, you can either go directly to your builder or to Tarion.
It also helps to know the builder because then you can then do research to see the other homes they’ve built. If they have a history of quality communities, have good reviews, and don’t have any red flags in the Tarion directory
, then they could be a great choice for you.
Neighbourhoods are transformed by new residential development. By buying pre-construction, you’re sometimes getting in on a budding area before property values go up. It’s important to do your research though because not all areas with new housing are destined for greatness.
A good way to tell if a neighbourhood is up-and-coming is to look at the surrounding area. If there are high-end or trendy communities nearby, and the new housing development you’re considering is right next door, then it could be a good investment. For example, Daniels’ work in Regent Park over the last few years has really transformed the neighbourhood, and it’s steps from the Financial District and the St. Lawrence Market.
When you buy resale, your only options are the homes that are listed. When you buy pre-construction, the builder has a wide array of floor plans from which to choose. If you’re looking in a condo building, there will be numerous one- and two-bedroom floor plans that may suit your lifestyle. When you’re buying a single-family home, the builders usually have a couple elevation options for each floor plan.
Clearly, there are many reasons to buy a pre-construction home in the GTA. We hope these pointers help you discover your dream home!