Because price of properties will always appreciate except for Trump Tower, I guess ?
Why Should You Invest in a Pre-Construction House or Condo? Pros and Cons
Why Should You Invest in a Pre-Construction House or Condo? Pros and Cons
There are many reasons why one should and would invest in Pre-Construction condos and houses. Primarily, in Toronto, Pre-Construction condos are readily available, and offer many amenities that make them attractive as either an investment purchase or as a personal residential purchase. But along with those benefits, there are also cons in purchasing a Pre-Construction condo or house – they fortunately do not heavily outweigh the pros, but they are worth considering if you are looking to invest in a Pre-Construction property.
Let’s look at some of the actual benefits of investing in a Pre-Construction condo, specifically in Toronto and why that may be a good idea. Firstly, Toronto is a growing hub that continues to grow and grow and grow. There will ALWAYS be a demand for housing. This means two things – if you purchased a Pre-Construction condo.
1) You can buy it and rent it – this will give you a nice cash in hand benefit, that depending on the location of the Pre-Construction condo or house could be upwards of $500-$1000/month.
Or option
2) which is by far the most profitable and easier to deal with – buying the Pre-Construction condo or house and then flipping it.
If we look at how properties in high appreciation areas create profits of upwards of $100k – you’d be crazy NOT to do it. Unfortunately it is never guaranteed, much like other investments. There is an element of risk and patience involved that isn’t always the ideal way that people would like to deal with situations. There is a lot of thinking involved with these types of investments, and one must be sure that this is the route that they can manager, and would like to travel down.
On the flipside, reasons why NOT to invest in a Pre-Construction condo are fairly similar to why one shouldn’t invest in property. There is a big chunk of upfront down payment money needed, and not many people can just whip that out. In Toronto, those purchasing Pre-Construction condos are generally from a younger generation trying to get their foot in the door with real estate, while this is a good thing, generally speaking, there is a high element of risk involved – money being tied up for 3-4 years, and the possibility of things going sour.
There is heavy dependence on the assumption that there will still be high demand for housing in Toronto, and that inflation will raise housing prices. Can you wait that long? Can you actually afford that potential risk? These are all questions that you need to ask yourself before investing in Pre-Construction condos or houses.
Generally speaking, and speculating a little bit, the housing market in Toronto has been pretty stable for the past while. The demand is increasing, and there is no indication that this will slow down – if anything it will increase as time passes. So investing well, doing research, and making the right decision could make your Pre-Construction investment a great one. Let me help you understand the benefits and risks involved with Pre-Construction and assess what would be best for you in your situation. Either way, there is no doubting that Pre-Construction is an investment option, whether it is the right investment option for you has yet to be determined.
The condo market in Toronto is booming, and preconstruction condos are always something that is worthy of an investment.
Source: TorontoCondosVIP.com