26 Apr What is the best time to invest in pre construction condos?
You might be considering to invest in GTA condo market? Timing is one of the most important factor when purchasing a pre-construction condominium. There are few phases in project launch time lines where you can get the best deals like cap levies, discounted parkings, free lockers with maximum return on your investment.
1. At the Platinum VIP Launches
Developers knows that this is the most important phase of condo project when the hype is maximum in the market and press loves to report on project launches. Developers offers the best prices, cap levies, rent guarantee, free maintenance for an year or two, lockers or cash back incentives to lure investor community and buyers.
2. Inventory sale to get financing for development from bank/lender.
Developers are required to pre-sell certain percentage of unit before they get financing to develop. Sometimes a developer is struggling to make up the last 5-10% of sales so that they can start construction. At this time, a developer may do a special one day sale where they offer incredible incentives so that they can start construction and make the money back by increasing prices on the final batch of units once construction has already began.
3. Special discount sales to through Platinum VIP Agents for certain high end units.
Sometimes developer quickly sell studios, one bedroom units being most popular because of less cost. Developer run exclusive discount sales to selected VIP agents to sell those units.
4. Early phases of sales for Master Plan Communities.
For single condo it is indeed possible to look at trends and neighbourhood directions. Master planned communities has timed phases of project/unit launches. This creates yet another form of artificial price growth as the newer units establish the new baseline price and increasing return on investment.
These are general criteria for the time line, of course every condo project is different and need to looked from different angles. Be sure to join my list for real estate updates, top condo projects and valued tips for real estate investment. Feel free to contact me at 416 877 0172 or email KULWANT@HOTMAIL.CA for your real estate needs, for buying and selling.