Consider A Pre-Construction Condominium
Monday Feb 01st, 2021
There are both pros and cons about buying a pre-construction Condominium.
The buyer . . .
1. has ample time to save for the required down payment and closing costs.
2. can rent out the property upon occupancy, which can generate income prior to closing.
3. is protected under the New Home Warranty that covers both minor and major defects.
4. can choose fixtures, tiles and floor plan.
The buyer must be aware of . . .
1. HST costs. On pre-construction, there is an HST fee. However, one can apply for a rebate and get back a portion of the fee or all of it. Speak to your builder and lawyer.
2. Agreement clauses. The agreement always has clauses to protect builders; hence, the client's lawyer should carefully review the agreement of purchase to determine if there are any items that could have a negative impact on the client.
3. Living in a building that may still be undergoing construction and have to deal with dust and noise, etc.
4. Being able to see only pictures and drawings rather than the finished product. Plans can change as construction goes along.
5. Delays in occupancy and closing date. Until buyers have the keys in their hands, they cannot be sure of their move-in date