In regards to condo occupancy rates, there are nearly 2 million people in Canada who made a condo their new home in 2016. Due to the newfound demand for pre-construction condos in Canada, the number of construction projects in the country has also risen accordingly. Here, our focus will be on new condos for sale in North York, and why you should consider investing in pre-construction condos in Canada.
A condo is a dwelling or building that has been divided or subdivided into multiple housing units. Each unit within the building is then sold off on an individual basis to individual investors or owners. Every owner within the condominium complex has a share of land ownership upon which the condo was erected.
One of the chief benefits of investing in a pre-construction condo is that you will have an opportunity to invest less money initially, while also getting more for your money in the future. In other words, if you decide to invest in a condominium during the pre-construction phase, then you will be able to maximize your return on investment.
The purchase price for a pre-construction condo will be lower than the current price of a condo that has already been fully built. Once the pre-construction condo is finalized, you will be able to reap the benefits of your investment and patience rather quickly.nbsp;
While there is some risk involved in investing in a project that has yet to be finished, more often than not, the benefits mitigate any risks that are involved. Another advantage of investing in a pre-construction condo is that there is very little maintenance involved.
Of course, poor craftsmanship, which may involve cutting corners to cut costs, may force you to make repairs quickly, which is why it is important to perform the necessary due diligence to ensure that you are getting quality for your investment.
Instant equity is yet another benefit of investing in a pre-construction condo, as you will get the opportunity to enjoy instant equity as soon as you invest. That means that even before construction takes place once you have the required paperwork, the condo is as good as yours.
Furthermore, you can also enjoy some unique tax benefits by investing in a pre-construction condo. For example, did you know that only 50 of all capital gains are taxable in this country? You will be able to deduct quite a bit of your costs from your taxes, including but not limited to, unit depreciation, property taxes, and even mortgage interest.
You will also be able to enjoy an extended deposit structure by investing your hard-earned cash into a new pre-construction condo project. In other words, the deposit, which may range from 15 to 20, will usually be spread out. Also, it should be noted that you can own a pre-construction condo and not have to worry about it being shown on your credit bureau as well.nbsp;
Thanks in part to the extended deposit structure that is involved in pre-construction condo projects, you will have ample time to save your money. The time it will take to complete the project, which may take several years in some cases, will also allow you to save enough money to purchase without any financial issues on your end.
In addition, if you are worried that all of your money will be tied up into the initial purchase cost, then you can rest assured that you wont have to worry about investing in any renovations for quite some time. Given the fact that the condo is brand new, you likely wont have to worry about having to renovate the unit for at least a decade.
This is in stark contrast to many older condo units, some of which have been occupied for several decades. In the unlikely event that you do notice something wrong with the new unit, you can call the builders to notify them that something is structurally wrong. More often than not, your builders will be more than happy to rectify any structural issues free of charge.
As can be seen, there are many benefits to investing your money in a pre-construction condo in Canada. Given the fact that even a common townhouse can cost upwards of one million dollars in many parts of Ontario, more and more people have opted for the far more affordable solution, which is investing in a condo project instead.
Monica Benoit is a blogger in Toronto.nbsp;She is currently working as a community manager fornbsp;Your Condos. She has graduated with honors from the University of British Columbia with a dual degree in Business Administration and Creative Writing.
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