Preconstruction is a great form of investment right now in Ontario for several reasons. Here are some of the top reasons why:
Leverage: Buying a pre-construction condo with 20% down, or less, allows you to leverage 100% of the asset’s appreciation at a five-to-one ratio. Between 1997-2017, the 20-year-over-year average for properties in C01 (downtown Toronto) shows a near 11.56% appreciation before adjusting for inflation.
No bidding wars: You do not need to enter a bidding war for a pre-construction home. This can be a huge relief for buyers who are tired of losing out on bidding wars for existing homes.
Choice of developer and location: Getting in early at the development stage is an exciting prospect, especially as you have a choice over the developer and location. It’s important to invest in a builder before you invest in a building. Choose a condo building developer or reputable builder who has a solid track record of executing on their development plans in a timely fashion and without excessive delays.
Potential for growth: Pre-construction condos have the opportunity to be both a great long-term and short-term investment option. This is why many individuals prefer pre-construction real estate in Toronto, and pre-construction condo sales have been growing for several years.
Overall, preconstruction investment in Ontario offers many benefits and opportunities for growth. It’s important to do your research and work with a reputable builder to ensure that your investment is sound.
This blog is intended to provide general information and should not be construed as financial advice. It is recommended to consult with a professional for specific guidance tailored to your personal circumstances.