If you have made up your mind to invest your hard-earned money in toronto pre construction condos, then it is imperative at your part to understand preconstruction condo phases. There are many phases from planning to designing and construction period before it is ready to move in. This article will give you better insights to understand about preconstruction condominium industry. You will be able to understand the different phases from preconstruction to occupancy.
If you have earlier invested in real estate, then you may be aware that condominium developer is supposed to raise funds to build the units. This is the reason why they start selling the units before construction begins. Developers need to sell 70% of the entire building. This facilitates them further as they get approval for financing.
The sale of your preconstruction condo will start in different phases. In the beginning, your developer will try to sell the most preferred units to their friends and family. After this, there is platinum launch in which condo developers will approach to their preferred agents and give access to all their units. This phase offer the lowest prices. At last, but not the least there comes a public launch. This is a phase in which interested buyers can purchase toronto pre construction condos direct from the developer.
You have read that developers need to sell at least 70% of the units before construction. This depends on how soon they sell the building. If you have a real estate agent serving as an intermediary, then he may be aware of the developers who have good reputations. This will help you choose the right developer who is sticking to his projected timeline.
Remember that interim occupancy will start sooner on lower floors in comparison with higher floors. Even if some units are ready to move in for occupants, but there may be some areas, which are not yet completed like common spaces and amenities.
Between 3 to 8 months after interim occupancy, the building will be registered. You will get the title transferred to your name.
It may be possible that your preconstruction condominium will take three years or more for completion. This is enough time to earn significant equity. You can ask your real estate agent to understand the market value of your condo. This will help you understand how much you have earned on your investment. If you will take care of these things, then you will be able to invest in another preconstruction condo by using earned equity. Soon you will find that you have developed a wonderful portfolio of real estate investor.