As the name “pre-sale” indicates, this is a condo that has not yet been built. But even though you may not have been able to physically walk through the condo and see it, pre-sale condos offer many advantages over buying a condo that has already been completed.
One of the biggest incentives to buy a pre-sale condo is the fact that prices are often much lower early on as developers work to generate construction capital. Prices can be anywhere from 10 to 40 percent less than similar-sized properties once they are completed.
Pre-sale condos also give you more options when it comes to which floor, what view, and which condo layout you want to buy. Some condo developments will also offer special incentives, such as an appliance upgrade or other special amenities.
One of the main reasons people choose a pre-sale condo is the significant discount. Developers have to find ways to finance the building and these special condos are often what they use to do that.
The developer may offer a flat discount of 5 to 10 percent or they may offer a sliding scale discount depending on how early you buy into the pre-sale. Discounts may increase on a weekly or monthly basis, or they may even lower when the close of the pre-sale is getting near.
In addition to the discount, you may have a variety of payment options, such as using a mortgage to finance your condo as part of the pre-sale, making minimum cash down payment of 20 to 30 percent, and paying the balance in one lump sum, or paying the balance all at once.
With a pre-sale, you can pick the specific unit you want within the development and have the developer deliver it to you in a timely manner.
Many developments will offer a few different types of units depending on the theme or location within the development. For example, you may have the choice of a loft-style condo or a one-bedroom or a two-bedroom unit.
You may also have a choice of a corner unit, a unit with a view, or a unit on the top floor. The list is endless, but having the ability to make these choices is a major benefit.
Pre-sale condos offer the opportunity to buy a new condo with features and amenities that might not be available on completed units. This may include options for outdoor entertainment spaces, different flooring options, and storage solutions.
These may be just extra perks for you or they may be part of the selling point for the new development. In both cases, it pays to stay on top of what the developer is offering in their pre-sale units.
Pre-sales are a great way to jump onto the condo market before prices go up and make it more difficult for you to enter. Just make sure you are aware of the risks of buying a pre-sale condo, and that you understand what the pre-sale features and amenities are, so you can make informed decisions down the line.
If you are looking for pre-sale condos near your area, you have come to the right place. Roger Rampuri has been in business for years and is considered the leading real estate brokerage firm for pre-sale condos in Canada. Regardless of where you live in Canada, we have pre-sale condos available to suit your needs.