As the fastest growing city in Canada and the US, pre-construction investing is a great way to make money! It allows investors to take advantage of low prices and high potential returns before condo construction starts as the demand for housing pushes up prices.
When you have a real estate wealth strategist at your side, you can enjoy access to the best pre-construction condo developments before they are ready for the general public.
If you want to learn more about how to invest in pre-construction condos, keep reading!
1. What is pre-construction investing?
It’s essential to understand what pre-construction investing is before you get started. This means that investors can make money by buying condos at lower prices before the project begins. Then, they can either enjoy healthy returns from the property as a rental or sell them for more than the purchase price when the developers complete the project. Most pre-construction projects offer a deferred deposit schedule which means that you can make smaller installments during the course of the construction instead of a lump-sum deposit.
2. Why invest in pre-construction properties?
If you want to start making money with real estate, then pre-construction is an excellent option to consider. In Toronto, investment in pre-construction condos is a popular choice because the market is going from strength to strength.
The most important benefits are the potential to profit from the property before developers finish building, as well as the appreciation in pre-construction over time. As the Toronto property market continues to boom, you can have more control over your investment by purchasing a new build than by buying an already constructed home. Also, the properties have a greater long-term return on investment, as they’re often in desirable neighbourhoods with good schools and amenities.
When you compare pre-construction properties with homes, there are two important considerations: affordability and qualification. The requirements are much higher when purchasing a home, with strict mortgage rules via employment and down payment percentages required. Thus, condo precon is a great way to start your investing journey and get your feet wet as it allows you to enter the housing market without having to incur a higher mortgage and tighter qualification process for the mortgage.
If done correctly, this type of investment gives the highest returns over time. This is because the rate of growth is typically higher on these types of assets due to a lower upfront price compared with residential homes (or commercial buildings)!
3. How to find a great property
One thing to keep in mind when your looking for a pre-construction property, though, is that there are many opportunities out there to choose from. You need to work with an experienced real estate wealth strategist who can do the right research, understand your needs, and select the ideal property based on their expertise and experience. The focus is always on education investors so that you are equipped to make an informed, strategic decision.
They are also privy to the most latest and up-to-date information about new projects before it becomes more widely available. They also have platinum access afforded to them via the relationship created by the broker of record that not just anyone has access to.
If you’re interested in investing in a pre-construction condo, then give Nikki a call. She would love to help answer any questions about how this investment opportunity could work for you and your family. There are many ways to invest in pre-construction properties, but working with Nikki means that you get access to the best properties for the highest potential return on your investment!