This days, the condo market is getting quite hot. No wonder that there are many people looking for pre-construction condos to buy. This post looks at why there is a rush to buying preconstruction condos.
Upon agreeing on details and signing an agreement, the buyer of a preconstruction condo will be required to provide a deposit of between 5 %.-20 %. Part of 5% is paid when the agreement is signed and the balance paid within 10- 15 days. The remainder of the amount may be paid in this order: 5% within 30 days, 5 % within 90 days 5% within 180 days and so on. This mode of payment makes it easier for buyers to finance their pre-construction purchases. It gives them time to arrange for financing, get approval and have the agreement reviewed by their lawyers. The buyer is free to back out of a contract and the contractor is obligated to refund the deposit without making any deductions.
Even though builders are required to provide the completion date, on very few occasions will most of the condos be completed on time! Luckily, you can take care of this by providing for penalties in the initial agreement.
Buyers are protected from material change
The agreement cushions the buyers from unscrupulous developers who may want to change the design of the pre-sold units. Builder are not allowed to add, subtract or change the layout of the condos the way they want.
Interim Occupancy Period
During this period, the buyer is free to take possession or move into the unit. Even though, he does not own the unit. For this to happen, the buyer should pay the builder an amount equivalent to mortgage payment, taxes and condo fees. The transfer of land does not take place at this point.
You Can Invest Less and Get More Money
Unlike other investments, investing in preconstruction condos allows you to leverage limited funds for greater returns. For instance after paying a down payment of 20 % and allowing your bank to fund the remaining 80 %, you will get more money when you resale the condo after it has appreciated by 100 %.
Allows You To Have Funds For Other Activities.
The initial down payment is spread over the course of construction. The exact figures or percentage may vary from one developer to the next. It saves you from outlaying huge amounts of your savings into a single project whose returns will not be available immediately.
They Are Good Long Term Investments
Purchasing a preconstruction condo is a good long term investment strategy. Once it has been completed, you may let it out to a tenant and use the monthly rent he pays to reduce the principle owed to the bank. If the interests are low you will cheaply and consistently pay the mortgage.
Since you will not incur inspection fees, buying preconstruction condos is cheap and is the best option for you. In addition, you will not have to repair anything as soon you get the permission to occupy it. This drastically reduces costs and makes investment in such property profitable in the long term.
M city condos is a new condo development coming soon by Rogers development. It’s a city in a city that’s why it’s known as M city or Mississauga City Condos.