In this article and videos, Yossi Kaplan, Toronto expert Realtor explains the three steps and process of buying a pre-construction condo in Toronto.
What is a Pre-Construction Condo?
Developers sell units in condo buildings way long before the building itself exists. This type of sale is called “Pre-Construction” sale. At this point, the price of the condo is deemed to be the lowest it will ever be. The more units are sold, the higher the prices. Once the building is complete and residents start to move in, we expect prices to be the highest.
That is why investors flock to Pre-Construction (VIP) sales: to get the cheapest price, and, the best unit allocation.
The pre-Sale may be called a VIP Sale, Platinum Sale, Insider Sale, etc.
Why do Investors Love Toronto so much?
Toronto is one of the fastest growing metropolitans in North America. Life is good and safe here. The city is brilliant and attracts an approximated 150,000 new residents each and every year. All these new comers require accommodations and that’s where we come in:
We (investors) acquire condos that are best suitable for renters, and once completed we lease them in the open market. The proceeds from rents are used to finance our investments (pay for mortgage, condo fees and municipal taxes). Investors may keep the units for the long-term, or sell them anytime, take profits and re-invest elsewhere.
See the newest Pre-Construction Condos here:
Three Steps in Purchasing Pre-Construction Condos
Step 1 – Selecting Your Unit
The best investors find the best units to buy They spend time researching new buildings, and contact Toronto’s VIP Agents – such as myself – requesting access to these new investments.
I will then send you information regarding the building:
You will then select your top 3 floroplans and fill a worksheet.
Step 2 – Worksheet
In the worksheet, you will give this information:
- Name & Contact Info
- Your Top 3 Choices
Many first-tome investors get stuck on the “3 choices” part. Why? Because they do not have enough experience to make a good selection and they are afraid that they will not select the right one.
This is where I come into the picture, I will help you select the best possible units for your taste and budget.
Remember that worksheets do not guarantee you the unit you are hoping to get, or even a unit at all: in many launches, the demand far exceeds the supply, and only some of the investors will get units.
Moreover, the developer will allocate you a unit based on your worksheet, but it may not be the exact unit you were asking for. If, for example, 900 worksheets have been submitted and only 150 condos are available, only 1 in 6 that have filled a worksheet will get a unit. That’s how it is.
Step 3 – Signing
In the days after you have submitted your worksheet you and your agent (me) will be called to sign for the units you have selected. You may or may not get the exact unit you asked for, especially in a wold-out situation. Most investors take the units allocated to them, as they know that prices in the next round of selling will be much higher than the previous one.
What you need to bring to signing is:
- Identification (DL, Identity Card or Passport)
- Five Personal Checks
- Winning attitude!
The process takes about an hour, and an be proceeded by a wait of one to three hours. So bring water, snacks and prepare to stay for a bit.
For a list of new condos coming up, visit:
How about Re-Sale Condos ?
Re-Sale condos are pre-Construction condos that have been completed and registered (deeded). Re-Sale condos are usually bought by those who require 1) immediate housing (going to reside in the unit) or 2) immediate cashflow (going to rent the unit out).
You can find Re-Sale Condos here:
King West: https://urbanrealtytoronto.com/king-west-condos-for-sale
Queen West: https://urbanrealtytoronto.com/queen-west-condos-for-sale