Pre-construction condos are a great investment opportunity, especially if you’re looking for an immediate residence. These properties can be used immediately, offering you spatial clarity and visual certainty. Another advantage of new condo developments in Toronto is their affordability, making them an ideal choice for people on a budget.
Opportunity to reap a profit sooner:
One of the main benefits of investing in new condo development is the opportunity to reap a profit sooner. These condos are usually located in up-and-coming areas where the population is growing. These areas are less expensive to purchase than larger cities, and developers are capitalizing on this trend.
It allows you to lock in a low deposit while still enjoying 100% appreciation over three to five years:
Investing in a new condo development allows you to lock in a low deposit while still enjoying 100% appreciation over three to five years. You’ll also be able to avoid mortgage payments and tenants’ fees. Most pre-construction projects require a 5% down payment at signing, which can help you avoid paying large lump sums upfront. Some builders even offer 5% deposits every year until occupancy.
Long term planning:
When you invest in a new condo development, you’re investing in a future asset that will appreciate over time. Condos often sell for lower than their assessment value, which gives you a great opportunity to secure an asset that will appreciate quickly. As an added benefit, condominiums are often located in thriving communities.
Investing in a new condo development will allow you to own a new home in the next few years. Unlike existing condos, which are nearing the end of their prime and are getting increasingly expensive to buy, new condos are still in high demand. They will continue to appreciate above the market value during the construction period.
You will get the highest possible return:
Another benefit of buying a new condo unit is that you will get the highest possible return when renting or selling it. Because you’re not buying an existing home, you won’t have to deal with back-and-forth offers and bidding wars. Additionally, pre-construction properties are typically located in a growing neighborhood with more demand.