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
“Unlocking the Future: Explosive Growth Predicted in Construction Partnerships – Are You Ready?”
The global Building Construction Partnership market is primed for major growth between 2025 and 2032. The industry includes residential, commercial, industrial, and institutional construction, and is set to dominate markets across the Americas and Europe. These partnerships boost efficiency, reduce costs and risks, and increase profitability. This rise signals an increase in trust and cooperation within the industry, indicating promising opportunities for partnerships, investors, and stakeholders. This blog post dives into the promising future of the building construction partnership market.
“Building the Future: Discover Canada’s Game-Changing Construction Breakthroughs of 2025!”
This blog post gives a detailed insight into the latest developments and innovations in the Canadian construction industry. It sheds light on how the sector is evolving to embrace advanced technology for improved efficiency, sustainability, and overcoming contemporary challenges. It explores significant infrastructure projects of 2025, the shifting dynamics of construction investments, uptake of innovative methods, and strategies professionals need to stay competitive. The post also highlights the role of various resources that help professionals stay informed and ahead in the industry. Stay tuned to understand how these developments are reshaping the Canadian economic landscape.
“Unlocking Hidden Opportunities: Canada’s Construction Industry Surges Despite Setbacks”
This blog post delves into the recent report by Statistics Canada, discussing the slight decline in investment in building construction, notably in the multi-family category. However, the downturn is not a cause for alarm as the non-residential construction sector has shown significant growth. Despite the changes, the construction industry in Canada remains resilient, offering promising opportunities for adaptable investors. The post further explores how understanding these trends can suggest innovative investment strategies in response to these shifts in the construction and real estate market. Discussing the importance of diversification and adaptability, the post provides valuable insights into navigating the dynamic Canadian construction industry.
“Skyrocketing Success: Saskatchewan’s Construction Boom Sets New National Standards!”
Saskatchewan, a prairie province in Canada, is witnessing an unprecedented construction investment boom, ranking it second nationally, according to Statistics Canada. This construction surge is largely due to the province’s proactive investment initiatives, aimed at creating resilient communities and jobs amidst challenging economic times. This development is not just influencing built environment; it is revitalizing the local economy, creating investment opportunities, and positively impacting the real estate market. The province is showing potential to become a prime spot for investment in Canadian construction and related sectors, benefiting locals and investors alike.
Montreal’s $7 Billion Green Marvel: How Eco-Friendly Innovations are Transforming the Future of Urban Living
Explore the ground-breaking $7 billion mixed-use project in Montréal, setting new standards for sustainability in the booming construction sector. Read about their eco-friendly waste management strategies and how their commitment to the environment is attracting a wider consumer base. Discover the rippling effect this has on the industry, inspiring small to large-scale projects to adopt green principles, ushering in a new era of sustainable construction. Dive into this thought-provoking topic, and join in the discussion on the key role of green initiatives in the construction field.
“Steamatic Canada Invades Nova Scotia: Unlocking New Horizons in Restoration”
Discover the latest expansion move by Steamatic Canada as it opens its first franchise in Nova Scotia. This development reflects the company’s impressive growth strategy and brings a wealth of opportunities for the local construction and restoration industry. As a leader in the cleaning and restoration sector, Steamatic’s arrival will enhance service standards, contribute to job growth, and drive significant impact on the Nova Scotia market. Dive into the strategic choice of this location and what it means for customers and the province’s commercial environment.
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