Investing in a pre-construction condo is no easy decision and a big financial investment. First of all, it is not completed, and you are making a purchase based solely on conceptual understanding. Second, you will also be paying for upkeep, maintenance, and common amenities. All in all, there are quite a few things to consider when buying a pre-construction condo.
On the other hand, buying a pre-construction condo has its perks like lower price per square foot, and sometimes the builder can grant you an upgrade according to your preferences.
Then you have these unfortunate myths can’t stop circling between people even though they are completely made out. Real estate agencies such as Condo Mapper have heard it all from their clients. Read on if you want to know some of the most common myths about pre-construction condos and why they don’t make any sense.
1. There is no end to the wait
You’ll get old before you can step into your condo. This is quite a common belief that doesn’t hold any merit, especially if it is a reputable condo builder. The truth is that the best builders will do whatever is in their power to meet their development goals. Nowadays, it is not that difficult to check the builder’s history and any significant delays in some of their previous projects.
2. You get to lose your deposit if the developer folds
Even though the risk is low, some developers have gone bankrupt in the past. But even that happens, deposits of up to $20,000 are protected. That’s because when buying a pre-construction condo from a trustworthy developer, a small fee goes to the Tarion Warranty Corporation. This is a corporation that has been authorized by the Ontario government to safeguard new condo purchases.
3. You are buying a cat in a bag
The suggestion here is that you don’t know what you are buying, and it can turn out the condo to be not as good as advertised.
Again, as long as you are in business with a reputable developer, there isn’t much to worry about. To ensure that everything is of the utmost quality, thoroughly explore the presentation at their sales center, check out the finishes, floorplans, and anything else you can think of. Ask as many questions as you need so that you can get some peace of mind. Furthermore, you can even visit some buildings developed by the same developer.
4. You need to pay the full deposit at once
A 20% deposit of the full purchase price is needed, but that doesn’t mean you need to chunk out the entire amount at once. Nowadays, most developers allow for the deposit to be paid in as much as 15 monthly installments.
5. The final bill will blow you away
Again, this is just another myth. Whether you buy a completed or pre-construction condo, the cost of ownership is more than just the mortgage rates. Every condo owner knows that there are maintenance fees and property taxes in addition to the deposit and mortgage payment. The only extra payments with pre-construction condos are the closing costs.