How to Successfully Buy Preconstruction Condos in Toronto

Oct 3, 2020 | Pre-construction Condos, Toronto

How to Successfully Buy Preconstruction Condos in Toronto

Developers are known to play a little game when setting up for their initial launching of the pre-construction condo project and one very important piece of information is… the developer does the launch in generally five different stages

Developers Dilemma

Did you know that developers cannot move forward with obtaining their OWN financing for construction until they sell at least 75% of the units? This is just one of many bits of vital information that you should know how to successfully buy pre-construction condos in Toronto!

This is a key point as to why the price tag on a pre-construction unit is lower than at the time that the condo is completely built, and units go up for sale. This is also why a buyer only needs a good down payment to secure a unit in a preconstruction condo without having to flip the mortgage loan too…that can wait until the condo is completed.

Developers are known to play a little game when setting up for their initial launching of the condo project and one very important piece of information is…the developer does the launch in generally five different stages. As you may have already guessed, the best and most desired units are the top picks for buyers and the method for early sales usually runs as so:

Toronto Real Estate
  • Preference buyers (developers tend to let family & friends have first pick of units)
  • A ‘Platinum’ Launch (a select group of top agents are invited to work with the developer for the best prices)
  • The Launch for VIP’s (a few hundred real estate agents are invited to help sell remaining units)
  • All Agents In (any agents can now help sell the remaining units)
  • Opening for the public (anyone can make an offer on the remaining units)
  • Bend It to Your Favor 
Condo Building Under Construction

First Buyers Are Getting The Best Prices For Condos

Now that you know that the first buyers in usually gets the best prices and at the public opening, units are priced higher and are less desirable then, say, the top floor(s) units. If you can at least get in with your realtor at the Platinum launch or the VIP launch, you have a much better chance of saving some substantial money (timing could be everything and could cost you a difference of $100,000)!

Location sometimes has to do with essential timing and pricing on pre-construction condos; in other words, the location could dictate the starting pricing (which could be set higher) and then lower, staying consistent for the remaining launch stages. This basically means you could pay a much higher price then someone that came in a little later for the exact same unit size & style.

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Multipurpose Design: Versatile 30×50 Space Ideas

Multipurpose Design: Versatile 30×50 Space Ideas

In the world of modern design, the need for versatile spaces that can adapt and grow with us is more important than ever. One example of this is the 30×50 space, which offers endless possibilities for creating versatile and functional areas within buildings of this size. The limitations of space actually serve as a guide, challenging designers to think creatively and maximize functionality while still maintaining aesthetic appeal. Whether it’s transforming a steel garage into a cozy home, creating a work and play environment, or fashioning a garage haven, the potential for versatility in these spaces is truly remarkable. With the durability and environmental benefits of steel buildings, the possibilities are truly limited only by one’s imagination.

Maximizing Your Commercial Space: Tips for 40×60 Structures

Maximizing Your Commercial Space: Tips for 40×60 Structures

Are you looking for a cost-effective solution to maximize your commercial space? Consider utilizing a 40×60 steel building kit. These versatile and durable structures offer a green building alternative that requires less maintenance and provides longevity. To make the most of your 40×60 commercial space, start with effective planning and consider factors like functionality and workflow. Design an efficient floor plan, utilize vertical space, and embrace open-plan design to boost productivity. Additionally, investing wisely and ensuring flexibility are crucial for long-term success. By optimizing your commercial space, you can reduce operating costs, increase productivity, and improve customer satisfaction. Choose a 40×60 steel building kit to create a space that propels your business forward.

Utilizing Wide Areas: Making the Most of a 24×48 Space

Utilizing Wide Areas: Making the Most of a 24×48 Space

Are you struggling to make the most of a wide area in a 24×48 space? Don’t worry, we’ve got you covered! With a blend of architectural understanding, smart space management, and a dose of creativity, you can optimize this space for various purposes, whether it be a garage, workshop, gym, or even an extra living space. By implementing pioneering architectural concepts and maximizing space with innovative design techniques, you can turn this blank canvas into a functional and aesthetically pleasing area. Strategic zoning and visualizing the space through 3D design can further enhance its functionality. Consider embracing steel buildings, like a steel garage, for their versatility, durability, and ability to maximize space usage. With effective planning and resource allocation, you’ll be amazed at the potential of a 24×48 space!

Transforming Small Enterprises: 30×40 Business Space Innovations

Transforming Small Enterprises: 30×40 Business Space Innovations

Are you looking to transform your small business operation into a more productive venture? Working smarter, not harder, is the key to success. One way to maximize the utility of your workspace is by investing in a 30×40 steel building kit. This customizable and sustainable option offers several benefits, from cost-effectiveness to energy efficiency. However, transforming your business goes beyond just the physical space. Strategic investing and innovative ideas are also crucial. With the right approach, even a small business can generate impressive profitability. So why not consider a 30×40 small business transformation? It could be the catalyst for the thriving enterprise you envision.

Optimizing a 30×30 Space for Versatile Use

Optimizing a 30×30 Space for Versatile Use

Welcome to the first step of transforming your 30×30 space into a versatile and functional environment. Whether you envision a steel garage or an artist’s studio, optimizing this space requires careful planning and a clear vision. Start by mapping out functional zones and incorporating dual-purpose areas to maximize usage. Consider the interconnectedness of design and layout, creating cohesive zones that flow seamlessly. Don’t forget to think vertically and utilize space-saving solutions such as floor-to-ceiling shelves and movable furniture. And finally, harness the power of lighting to transform the space and create the desired ambiance. With proper planning and creativity, your 30×30 space can be a game changer!

Dual-Purpose Designs: 20×30 Garage and Workshop Ideas

Dual-Purpose Designs: 20×30 Garage and Workshop Ideas

Are you looking for innovative ideas to transform your 20×30 garage and workshop into a dual-purpose space? With a 20×30 steel building kit, you can customize your space to meet your unique needs and goals. Investing in a steel building offers durability, flexibility, and sustainability, making it an ideal choice for your garage and workshop. Consider creative designs such as a garage and art studio, workshop and gym combination, parking garage and home theatre, or workshop and office space. Expand your space with a larger building if needed. Remember to plan wisely, consider professional assessment, utilize every inch of space, prioritize lighting and ventilation, and tailor your design to your lifestyle. With the right choices and thoughtful design, your garage and workshop will become a cherished part of your home.

Monde Condos by Great Gulf

The Realtor & Developer Relationship

Knowing how to successfully buy pre-construction condos in Toronto is to know upfront that developers and realty agents & brokers have a unique relationship that benefits them both. During a Platinum launch, the developer basically opens their roll-a-dex and plucks out their top realty contenders for the Platinum launch, which benefits the ‘Platinum’ realtor and the developer for a quicker/secure unit sale.
The Platinum realtors have an excellent track record of working directly with developers, sell many units for them and expect the developers to call them up when a new development is approved for construction to further pre-sell units. This relationship does save the developer money…but how?

Developers could spend a small fortune if they skipped the second, third and fourth stages of the launch and went straight to the public after the first stage and it is this that lends to the attraction of directly using real estate agents and realtors to push the preconstruction suites & units. Sure, developers must worry about realtors & agents/brokers commissions, but it is less work and less money for the developer to create relationships with realtors.
It is the real estate agents, brokers and realtors that shoulder the major costs involved when promoting a preconstruction condo. The developers respect this expense, and THEREFORE the developer protects the realtors and gives them the earliest chance to sell units.

Toronto Waterfront Developments

Time Equals Money in Pre-construction

Not every investor ‘gets it right’ because they either jumped too quickly on a preconstruction condo or they waited too long to make their move. You have already learned some highly valuable information that can be a big help when deciding on an investment in condominiums on the verge of construction commencing.
Realtors, real estate agents and brokers get the inside scoop on preconstruction condos in Toronto long before the public is made aware of them…so tip # 1 is to secure a Platinum realtor if possible, and if not, a reputable realtor to work on your behalf.
Guess what? If a developer does not hit their 75% sold margin to obtain financing for their construction loans, then they have to ‘sweeten the deal’ by offering better terms & prices on units, which of course is not advertised and only ‘whispered’ to a select few realtors!
Buying low provides the ideal option to sell high and isn’t that the point of being an investor? Many people will buy a condominium unit and at some point, down the road, sell it for whatever reason (so wouldn’t it be nice if there was a healthy profit)?

Platinum Agents Leg-Up

Let’s face it, Platinum agents are the go-to realtors when it comes to successfully buying preconstruction condos in Toronto for a wide swath of reasons:

  • They are the first realtors that developers turn to because of their abilities to sell large volumes of condos
  • These agents are a powerful force within social media outlets and are marketing wizards
  • They have sizable budgets for marketing & selling
  • They can get in on a preconstruction condo on behalf of their clients and get the best pricing/unit for their clients
  • These agents gain priority & sometimes unit incentives over all other agents in the real estate industry
  • Platinum agents can secure desirable suites & units faster for their clients

When the developer and sales team favor Platinum agents over all other real estate agents & brokers, it does make a huge difference when a condo buyer wants to get into a pre-construction condo strategically and save money along the way!

Check also

Identifying The Best Pre-construction Condo Investments

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