Years back, people would buy already built traditional condominiums without considering much, it was an easy investment. Today, things have changed and many would want to invest in a pre-construction where they have a say on the kind of design both the interior and the exterior that they prefer. Thinking of buying a condominium? There are a few things you need to consider; who are you and what is the primary purpose of purchasing the condominium? Are you a real end-user or an investor? As an investor, your objective is to maximize on the Return on investment, a savvy investor will go leasing the apartment to worthy tenants and therefore this will help them get back their returns and give time for the property to appreciate. An end user would want to buy, design, finish, furnish and enjoy living in a place of their dream.
Therefore, whether you are an investor or an end user, there are some things you need to take into consideration to make full benefit of your decisions.
Do enough research before buying
There are so many preconstruction condos in Toronto today. Therefore, to make the right choice, you need to take time and move around, make as many visits as possible making knowledgeable comparisons on the best prices and the expected return on investment. You need to find out who the architects and the designers are; do they have a questionable history? What other constructions have they done? Get to know their success and reputation from their record of accomplishment.
Be careful about the condominium location
As an investor, you want to get the best returns on your investment, right. The location you choose is a big determinant of the kind of tenants and prospective buyers of the property. Check the property’s proximity to beaches, airport, shopping centers, restaurants, and other relevant amenities. You don’t want to invest in a project, which is inaccessible; the re-sell value might shock you. The advice here is, go for the apartment at the best location and with the lowest price.
The preconstruction investing rule is buying during the opening pricing levels. This gives you the best selection from the available inventory. Opening prices are always lower but once enough marketing is done, the demand goes high and therefore, the prices. Therefore you must be quick in decision-making, find out who the architects and the designers are, is the condominium built according to standard? Where possible, get an expert in instruction and let them do their quick professional assessment. However, do not rush, if you feel you’re a bit late, and then you can stop and wait for other pre-constructions that are coming up.
Know the condominium documents
These documents show the complete intentions of the developer. They outline the monthly association fees-if any- and the regulations that will govern important issues for the owner. Find out the rental policies, pet restrictions, or whatever other changes by the developer that are relevant to you. Take time, review the documents, and don’t hesitate to ask questions where you have difficulty in understanding. Look out for a seller who will give you a review period before you pay them so that you’ve enough time to verify the documents. This will ensure that you are safe and you’ve invested your fortune to something that will not bring problems on a later date.
When buying a preconstruction condo, it is advisable that you take time and do your research, verify before you buy. Think about the future, if you wanted to resell the condominium, would it fetch you more than what you spent?