Pre-Construction Condos in Toronto

If you’re looking to invest in a preconstruction condominium, you should procure the services of an investment agent, such as the experts at Turnkey Real Estate Investment Company.


Investing in Pre Construction Condos

When it comes to real estate investment, it’s challenging to choose the right development to place your investments. In Toronto, this has become increasingly difficult with the boom in preconstruction developments, which has seen prices creep up due to supply and demand. With this in mind and the forever fluctuating real estate market, it’s hard to predict how much your investment will be worth in a year or even a week. However, with an excellent real estate agent by your side, you’ll have access to in-depth pre-acquisition research, which will help you determine the value of properties and the estimated returns.

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Reasons to Invest in Preconstruction Real Estate

There are many reasons why investing in preconstruction real estate is beneficial, and something that you should consider as an investor. Let’s take a look at some of the top reasons to invest in preconstruction real estate

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INITIAL PRICING
One of the main reasons you should invest in preconstruction real estate is that the initial pricing is usually lower than what the property will be worth after completion. In other terms, investing in preconstruction condos assures you of a higher return on investment.
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INSTANT EQUITY
In preconstruction real estate, investors benefit from instant equity. This means that as soon as you invest and sign the contract, the condo or home is yours, and you begin to earn equity immediately.
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LEVERAGE
If you invest in a good preconstruction home or condo, you’ll have control over a property worth significantly more than the initial investment. Purchasing a preconstruction real estate development in a highly gentrifying neighbourhood is an excellent example of leverage. Keep in mind that preconstruction homes or condos only require you to place a deposit of 10-20%, which you pay over the construction period, i.e., there is usually a gradual deposit structure so you don’t pay the full deposit at signing. By placing the deposit, for example, $5,000, you hold the rights to a property that will keep growing in value over the next years.
asset-management
PASSIVE INCOME
The rent prices increase every year, by the time the property is built it can cover your mortgage and earn you a monthly income. The advantage of preconstruction condos or homes is that you’ll have time to find a tenant before the development is complete.
disposition
HIGH RETURNS
Compared to all resale real estate investments, preconstruction real estate has higher returns. This is particularly so if you purchase a home or condo in an up-and-coming location, which will see your property’s value increase as the area grows. The high returns on preconstruction condos are also because people want to reside in a home with high-quality appliances and other new things available in recently completed condos and not resale condos.
financials
FASTER RETURNS
Compared to all resale real estate investments, preconstruction real estate has higher returns. This is particularly so if you purchase a home or condo in an up-and-coming location, which will see your property’s value increase as the area grows. The high returns on preconstruction condos are also because people want to reside in a home with high-quality appliances and other new things available in recently completed condos and not resale condos.

Why invest in preconstruction condominiums?

This is a question that we, as real estate investment agents, tackle a lot, especially from aspiring investors and homeowners. Most of them are afraid that their investment won’t be worth much due to the considerable inventory currently in the market. One thing to keep in mind is that every investment you make should be smart and calculated. Even with the high number of condominium developments, there are many preconstruction developments set to have high ROI.

Investing in preconstruction developments gets you better deals, even when compared to resale condos. When you invest early enough, most developers offer incentives such as free upgrades, which only increase the value of your condominium and your returns.

Even with the fluctuating real estate market, you have total control of when to sell your condominium. You just have to invest in a good development, rent it out after completion, and sell it when the market is favourable. As a real estate investment company, we know the most reputable developers, the best condo layouts, premium neighbourhoods, and we conduct thorough pre-acquisition research on any development. Contact us, and we’ll help you make sound investments.

Do you want more information?

We offer our investment partners the opportunity to take advantage of different investment strategies available for duplex buildings. Sit down with our experts today. Let’s discuss your options!


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