A pre-construction condo purchase requires a significant financial commitment and is not a simple choice. First of all, you are making a purchase based entirely on conceptual knowledge and it is not finished. Second, you’ll be responsible for covering the cost of repairs, upkeep, and communal facilities. There are a lot of factors to take into account when purchasing a condo that is still under construction.
On the other hand, purchasing a condo that is still under construction has advantages like a reduced price per square foot and occasionally the builder may give you an upgrade based on your preferences.
Then there are those awful beliefs that, although wholly untrue, keep getting passed around from person to person. Condo Mapper and other real estate brokerages have heard it all from their clientele. If you want to learn some of the most prevalent misconceptions regarding pre-construction condos in Toronto and why they are untrue, continue reading.
Extremely Expensive & Unaffordable:
The prevalent consensus is that pre-construction condos in Toronto purchases are pricey. The claim that a working-class couple cannot afford their preferred apartment in Toronto is incorrect. Contrary to popular assumption, buying an unfinished condo is more affordable than buying a freehold house. This has been demonstrated to be true, particularly in parts of downtown Toronto.
Absurd Waiting Period Before Completion:
The absurd waiting period before your condo is finished is another prevalent misconception concerning pre-construction condos. Without exaggeration, many believe it takes more than a century to construct a condo building. They dissuade would-be condo buyers from purchasing while the building is still being developed and planned. Some even imply that they are never constructed.
If the developer falters, you stand to lose your deposit:
Although there is little danger, some developers have failed in the past. Nonetheless, deposits up to $20,000 are secured even if that occurs. That’s because a minimal charge is paid to the Tarion Warranty Company when purchasing a pre-construction unit from a reliable developer. The Ontario government has given this organisation permission to protect brand-new condo purchases.
You don’t know what you’re buying:
This implies that you may not know what you’re getting and that the condo may not be as wonderful as it seems. Again, there isn’t anything to worry about as long as you are doing business with a trustworthy developer. Explore the presentation at their sales centre in-depth, looking at the finishes, floorplans, and anything else you can think of to make sure it is of the highest calibre. Ask as many questions as you need to to feel more at ease. You may also tour some of the buildings that were built by the same developer.
The entire deposit must be paid in one go:
Although a 20% down payment of the whole purchase price is required, you don’t have to pay it all at once. Currently, the majority of developers accept deposits paid over up to 15 monthly instalments.
You’ll be astounded at the final bill:
This is another myth that the cost of ownership is higher than just the mortgage rates, whether you purchase a finished apartment or one that is still under construction. Every condo owner is aware that in addition to the down payment and mortgage payment, there are maintenance fees and property taxes. The closing charges are the only additional payments required for pre-construction condominiums.
There are several urban legends regarding living in condos in Toronto. Buyers of homes may have preconceived ideas about condominiums, such as the idea that you can hear your neighbours through the walls or that you must pay expensive condo association dues. We dispel common misconceptions about condominiums so that you have the knowledge you need to make an informed decision about your next home because we think that how you live counts.