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:
- 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
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.
Sugar Wharf Condos
“Canada’s Construction Boom: The Unexpected Shift Fueling Economic Revival!”
This blog post discusses the remarkable increase in non-residential construction investment in Canada. It analyses the recent statistics from Stats Can, which highlight a 1.1% uptick in investment in November 2021. The surge is attributed to factors such as low-interest rates, government support, booming e-commerce, and economic recovery from the pandemic. This trend hints at a potential shift from the traditional preference for residential construction towards the non-residential sector. This rise in non-residential construction is beneficial for the broader economy, predicting a promising future for the industry and signaling a robust recovery.
“Unlock Your Home’s Hidden Charm: How Advanced Stucco Repair is Revolutionizing Georgia’s Residential Beauty”
Georgia homeowners are revamping their house exteriors using stucco repair and maintenance solutions from Advanced Stucco Repair. Stucco is a classic, resilient finish that can last decades with minimal maintenance. Advanced Stucco Repair restores curb appeal and structural durability through services that fix common stucco issues and offer a variety of finishes and styles. From smooth to rough stucco finishes, this company is significantly leveling up Georgia’s residential scene by offering solutions that are both aesthetically appealing and structurally durable.
“Unleash a $300 Billion Mega Boom: ReNew Canada Reveals Top100 Game-Changing Infrastructure Projects!”
ReNew Canada has recently unveiled its Top100 Projects Report, showcasing an array of ongoing infrastructure projects worth around $300 billion. These transformative initiatives span multiple industries including transportation, education, health, and energy, signifying Canada’s expanding infrastructure sector. The report reveals an unprecedented opportunity for national and international stakeholders in the construction and real estate industries, potentially offering substantial returns. With a strong focus on societal betterment and sustainable solutions, these projects are set to significantly boost Canada’s economic growth and job creation.
“Unlocking a New Era: Transformative $45M Overhaul to Revitalize Edmonton’s Iconic Manulife Place”
Epic Investment Services have unveiled their ambitious $45 million redevelopment project aimed at revolutionizing Edmonton’s iconic 36-storey Manulife Place. Beyond a simple architectural facelift, this venture is set to modernize the structure and open up exciting opportunities for local economy and businesses. With this substantial development, the building will be equipped with modern, fashion-forward retail spaces and improved amenities, pushing Edmonton forward in its mission towards urban rejuvenation.
“Revolutionary Tech Alert: How Waterloo Engineers Are Using AR & VR to Reimagine Infrastructure’s Future!”
Canadian engineers are leading the way in using augmented reality (AR) and virtual reality (VR) to extend the lifespan of important infrastructure. Engineers at the University of Waterloo have developed a ‘Smart Infrastructure’ system that uses AR and VR to provide an immersive understanding of construction projects, helping strategize structural plans and anticipate potential challenges. This cutting-edge technology is anticipated to revolutionize the construction and real estate industries and can potentially upgrade the global infrastructure landscape.
“Brace Yourself, Canada: Are Spiraling Weather and Construction Costs About to Drive Your Home Insurance Sky-High?”
As the effects of climate change become intense, Canadians need to brace themselves for a surge in home insurance rates. This rise in premiums stems from an increase in extreme weather events coupled with the skyrocketing cost of residential building constructions due to labour shortages in the construction industry. Learn about the intertwined dynamics of weather patterns, building costs and insurance premiums, and explore ways homeowners can proactively manage this looming financial challenge. The broader perspective towards these issues would help us make better decisions regarding our environment, economy, and living conditions.
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.
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
Let Us Show You The Depth Of Our Expertise
With our in-depth knowledge of Toronto’s real estate market, we can help you find out what the next prime neighborhood will be to make a purchase in and whether or not it will be a positive investment with the potential for a good return or not among many other factors.
0 Comments