The sales of condos in the largest housing markets in Canada have skyrocketed over the recent past. That has led to many looking to make investments in pre-construction condos such as the Sky Tower at One Yonge. In as much as making such an investment is a good idea, there are numerous factors that you need to put into consideration before making the final decision. Below are a few of the things that you need to know before you invest in a pre-build condo in Canada.
The Reputation of the Builder Matters
Putting your money in a condo unit that has not yet been constructed comes with its risks. It is for that reason that you should look for a developer that has an impressive reputation. The simplest and best way to determine the reputation of builders is to check the work that they have done previously and assess the quality of work. Find out if they completed the job on time and if not, the causes and duration of the delays. Also, find out if the developer raised the maintenance fees after completing the condo construction.
Location Can Influence Your Profits
The site location of the condo is another crucial consideration to make. Statistics indicate that about 54% of all condo sales in Canada are in Vancouver and Toronto. That means that such places have the highest demand for condos. Because of higher demand, the returns to your investment will be a lot higher if the condo will be constructed in such areas. More so, the demand will be even higher if it is located strategically, close to many public amenities.
You Might Have to Pay Interim Occupancy Fees
If you choose to invest in a pre-construction condo, you should be ready to pay the developer what is known as interim occupancy fees or phantom fees. The fees are charged to cover the maintenance costs of the condo, starting from the project completion to when it is registered. A good example is when some units of the condo are completed before others in a multi-story condominium. The interim occupancy fees will be paid until all the units are completed.
You Can Take Advantage of the Cooling-Off Period
After you sign a contract to purchase a pre-build condo, you will still have a cooling-off period, which is usually ten days. During that time, you are allowed to consult with your lawyer and do whatever else you need to do to ensure you are happy with the deal. If you change your mind, you can still opt out of the contract within the cooling-off period, without any legal implications.