The Myths of Pre-construction

Last week we explored pre-existing condos and their advantages and disadvantages. I did state that we were going to talk about pre-construction condos this week but I changed my mind. Before we examine pre-construction condominiums let’s talk about some of the myths surrounding pre-construction condos.  

As you know Toronto is leader in North American for high rise construction. If you live in Toronto it will be difficult to commute anywhere without coming across a pre-construction sales office. So the question is if you are interested in becoming a real estate investor why haven't you dropped in? Most would say they feel “safer” if the condo was built before they buy. We explored that option last week and saw many disadvantages for waiting the main one being cost. You will save yourself a lot of money if you buy pre-construction. So let’s expel some of the myths surrounding buying pre-construction.

I’m sure you’ve heard at least one horror story about someone buying a pre-construction condo and the condo never was built. Now lets us closely examine that statement. The condo was never built? A more accurate statement would be that the building completion was delayed. Condominiums are multi-million dollar structures and delays are very costly to developers. It is in the developer’s best interest to complete the condo on time. To be more precise, it is the developer’s best interest to complete the condo ahead of schedule. Furthermore, all developers sell pre-construction condominiums. The vast majority of the existing condos in Toronto and the GTA were sold as pre-construction. Pre-construction buyers are always rewarded because the property value always goes up as soon as the construction is complete.  

These are the facts about pre-construction: 

1.       They are always built but sometimes they are delayed.

2.       Selling pre-construction benefits the buyer and the seller.

3.       It’s very costly for developers if there are delays.

4.       Pre-construction condominiums always go up in value.

I hope I was able to dispel some of the myths about pre-construction. These were just a couple of the most common ones. If you have any questions about this topic please leave a comment or visit my website at www.mytorontocondos.ca. Next week will return to our regularly scheduled topic Pre-Construction Condos.