Real estate investments in Canada have long been considered a good choice for several reasons, such as:
- the country’s stable economy,
- strong property appreciation rates, and
- consistent demand in major cities.
Hence, buying property is considered a reliable way to build long-term wealth. Pre-construction condos in Canada are your best investment options for several reasons – whether you are a seasoned investor or a new one looking for a passive income stream. Let us see why:
Lower Entry Cost: Buy Low, Sell High
One of the biggest perks of buying pre-construction condos in Canada is that you can essentially buy property at today’s prices and benefit from all the loot of tomorrow’s gains. Before the construction or in its early stages, developers tend to offer units at a much lower price. If you invest then, by the time the condo is built, all the profit from the market heating up is yours – which often leads to significant investment appreciation.
It means that if you buy a condo for $500,000 when it is being built, you could easily see similar units selling for $600,000 by the time it’s completed. That’s a potential $100,000 profit waiting for you! In major cities like Toronto, as neighborhoods grow and develop, that kind of appreciation is a norm.
Phased Payment Structure: Spread the Love (and Payments)
Another reason pre-construction condos in Canada are so appealing is that they offer you a phased payment structure. It means that you don’t need to fork over a hefty down payment all at once. The payments are spread over a few years – making them easier on your pocket.
Typically, you’ll pay around 20% at first – and that too is broken down like this:
- 5% at signing
- 5% in six months
- 5% at 12 months
- 5% at completion
These flexible payment plans allow you to avoid draining your finances in one go and manage them more easily.
High Appreciation Potential: Your Money Grows as the Neighbourhood Does
As the area around your pre-construction condo in Canada develops, the value of your property keeps appreciating. Some of the developments that can lead to an increase in property value include:
- a new shopping center,
- a park, or
- a transit option in the neighbourhood.
Recent trends show that property rates in cities like Toronto and Vancouver go up by around 5-8% every year. That translates to a significant return on investment over just a few years.
Prime Location and Amenities: Pick Your Spot
Pre-construction Condos in Canada offer you an advantage over other property options. They allow you to pick the best location in the neighborhood or the building – and the most desirable unit. As an early bird, you can choose a penthouse with an amazing view or perhaps a condo next to a park. You get better options to choose from.
Also, these days, developers are offering many amazing amenities to choose from, including rooftop gardens, co-working spaces, and even high-tech gyms – that can make your unit more attractive to future tenants or buyers.
Developer Incentives: Who Doesn’t Love a Good Deal?
Here’s a little insider secret: developers offer you some fantastic incentives to book pre-construction condos in Canada. These may include options like:
- free parking (which, by the way, can save you $50,000 in cities like Toronto),
- upgraded appliances, or
- even a credit towards closing costs.
These bonuses can save you thousands of dollars in the long run and can significantly add to the value of your investment.
Besides, pre-construction condos in Canada offer you a flexible and profitable investment opportunity. The potential of high rental income and the option to sell on assignment (or to another buyer before the building is completed) are some of the other reasons why they make wise investment choices. Contact an expert to learn more.
