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To Pre-Construction Condos with one of Toronto’s Top Realtors

Whether you’re a savvy investor or you’re looking for a place to call home, you’ll find what you’re looking for—guaranteed!

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GET VIP ACCESS

To Pre-Construction Condos with one of Toronto’s Top Realtors

Whether you’re a savvy investor or you’re looking for a place to call home, you’ll find what you’re looking for—guaranteed!

Contact an Agent

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Why use a realtor experienced in pre-construction condos?

Your Best Interest at Heart

Your real estate professional works for you not the builder, therefore your best interest is at heart.

VIP Access

Your realtor will be invited to VIP events which gives them access to the best floor plans and prices per square foot before being released to the general public.

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The Right Questions

Your realtor has experience in pre-construction condos and will ask the right questions regarding building financing status, assignments, occupancy and so forth.

Negotiate on Your Behalf

Your realtor will be able to negotiate the agreement in your best interest. As price is usually not negotiable, certain fees (schooling, park levies etc) can be taken out or capped within your agreement.

Easy Updates

Your realtor can keep you updated on the project. Questions concerning building and occupancy can be easily answered.

Find a Buyer

If you are looking to assign your unit, your realtor can help you find a buyer while certain types of advertising is not permissible by the project builder.

Some things you need to know before buying a pre-construction condo in Toronto:

 

 • Prepare for the full deposit: When you can buy the resale house with less than 5 % down (with home loan insurance), investing in a preconstruction one usually requires a bigger down payment, such as for example 20 %. Commonly, you’ll deposit a 5-per-cent product sales deposit, and payout the balance from the deposit in instalments (at probably four, nine and 18 months into the purchase).

 

Work with an attorney: Get legal advice both before and after signing any preconstruction home contract. For condominiums, there is generally a cooling-off period – a time frame (generally seven to 10 days, depending on the province where you live) when you can cancel your contract and get any deposits back. Mr. Aaron, who generally assesses preconstruction home contracts 40 webpages long or more, says the cooling-off time is specific to condominiums unless created into an agreement for any other type of home.

 

Get ready to wait: It is not uncommon for targeted move-in times to be extended several times and by numerous months, as a builder could lawfully cite “inevitable delay” situations, such as building-trade issues. The warranty system within your province will spell out what delayed move-in payment, if any, you are entitled to and under what conditions.

 

You may be capable to secure your mortgage price for a bit longer: Builders have a tendency to work with chosen mortgage suppliers, who, in the event that you meet the criteria, would offer you a particular interest rate secured in over a protracted period, in comparison to what a loan provider not from the builder allows. Check if the expiry time at the locked-in rate includes a chance of getting extended in case your home’s conclusion is extended. Additionally, you don’t need to stick with the lending company preferred with the builder.

 

Manoeuvring the GST/HST: In case your preconstruction house is your principal residence, you can be eligible for rebates from the GST/HST, which utilize generally to “taxable product sales of the true property in line with the province in which the real property is situated,” according to Canada Revenue Agency. If you rent out your preconstruction home without first moving in, you may be on the hook for thousands in government taxes – check with your lawyer on ways you may be able to recoup that money.

 

Budget for closing costs, and expect surprises: Your real estate, legal and mortgage professionals can help you determine how much extra you will be paying in closing costs – which are on top of what you are paying for the home itself. Roughly, these extra costs can add from 1 to 3 percent or more to the price of your home, and typically include legal fees, enrolling in the provincial warranty program, title insurance coverage, property tax modifications and land-transfer taxes (First-time home purchasers may get some breaks on land-transfer costs). Other costs may include charges to keep tabs on your deposits, for using the digital land registration program and for tool meter installations. You might be capable of work out an agreement using the builder to cover so-called unlimited fees.

 

Plan the PDI: The predelivery examination – the very first time the buyer will discover the home inside its finished type – is normally done fourteen days to per month prior to the move-in time. Through the PDI, a consultant for the constructor will stroll you through the house, helping you have a look at all the functions and techniques (including mechanical, HVAC). Even though many contractors say you don’t have for you yourself to provide another celebration to the PDI – like a house inspector you employ at your personal price – you generally may bring along anyone you are feeling can help you within the examination procedure. The builder’s representative will bring an application to tag down whatever you experience needs repairing or modifying, or might have been overlooked from the initial sales agreement, as well as the constructor must follow through on dealing with them – before you move in, but sometimes after. Warranty programs tend to have specific PDI checklists obtainable online that break down what will become inspected and tips on what to look for.

 

Prepare to pay “rent” on your condo before you “own” it: In the case of a preconstruction condo, you do not officially own it until the building is authorized – which happens when it is mostly all lived in and passes conditions set out by the provincial land registry office. The registration process can take three months or longer, after which the title of your condo will be transferred to you – and that is when any mortgage or other payments you make are put towards ownership. While awaiting registration, you will be able to move in – during this “interim occupancy” period, you must pay monthly “occupancy fees” (a type of rent that will not be put against what you owe for the condo) to the builder. Each month’s occupancy fee incorporates the interest portion of the balance owing on the purchase price, the condo fees and a portion of your property taxes.

Frequently Asked Questions

How do I know if it's a good price?

The best offers on pre-construction properties come in their quite early stages once they simply release. Then contractors offer the greatest units at the cheapest prices. Because the task markets out, the constructor releases additional systems at higher costs. Agents tend to be given first selection on new tasks. (Selling with the builder’s sphere of impact, which is realtors that they use often, may be the contractors cheapest method of advertising.)

How does the deposit work?

The average down payment/deposit price in the town is 20% from the purchase price, however, many builders offer deposits only 10%. The down payment is usually payable in four sections of 5%. The down payment is held from the builder’s attorney in a have faith in account.

If you’re buying from the reputable contractor, your price includes a Tarion Warranty, which addresses your deposit up to a maximum of $20,000 within the uncommon chance there’s a total loss.
The debris goes communicate down payment once the condo or house is complete.

Can I buy it as an investment and sell it before it's complete?

If you sell your condo before the unit is ready, you avoid the closing costs which are as high as 5% of the sale price. But it’s important to have the resale clause in the contract. Sometimes builders also ask for a fee to allow you to resell it.

What are the out of pocket costs?

If you’re buying the condo being an investment:
– The debris (around 10-20% from the price)
– The Lawyer’s charge (around $1300-$2000)
– The agent’s costs to resell (around 5% from the sale cost)
– Half the revenue is usually taxable at 25%, minus deductions just like the agent costs and lawyers costs.
– Some builders cost a charge to owner if they resell the machine. (around $2000 to up to 1% from the sale cost)
If you’re purchasing the condominium as a house:
– The debris (around 10-20% from the price)
– The Lawyer’s charge (around $1300-$2000)
– The Land Exchange Tax (on $400,000 the LTT will be $8200; but also for a first-time customer it’s $2475)
– The builder’s growth levies and costs (Theoretically, these is often as higher as $50,000 in the event that you don’t cover them within the offer)
– The Nickle and Dime fees. (Some contractors will add little charges such as a fee for each period they cash among your cheques, a charge for dispersing their developing loans, or dual maintenance cost for the initial couple months to develop the reserve finance)
– The Tarion Guarantee (maximum price $1800)

Do I need a Real estate agent?

You need to make sure you purchase from the reputable builder, having an outstanding record for providing stellar customer support. Only look at a builder with honours in customer support and construction. That way you’re certain that earlier customers are pleased with their buys, and discovered the floorplans, facilities, and construction was what they anticipated. An experienced agent that offers preconstruction understands the towns top-rated builders, and may demonstrate the builder’s earlier projects, in order to notice their build-quality, and components. An agent will also assist navigate the product sales procedure, negotiate the agreement, and protect your passions. Also, the true estate agents charges are paid from the contractor.

Contact a VIP Agent Today!

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