Investing in Toronto Pre-Construction Condos
Looking to invest in Toronto’s booming Real Estate market? Condos have become the #1 choice for real estate investors in the GTA. In this video, Toronto Realtor Yossi Kaplan explains the process of investing in Pre-Con condos, also known as VIP or Platinum sales.
Step 1: Find Your Project
Toronto and the GTA are booming. There are hundreds of condos projects you can invest in. Each investor will have their own ideas on what’s best for them, the most used criteria are:
- Location – where is the project
- Price – usually measured in $PSF
- Plans and availability – what is available for sale?
Where to find Pre-Construction Projects:
- TorontoCondosForSale.com – register to all upcoming condos
- UrbanRealtyToronto.com – details on selected projects
- YossiKaplan.com – special deals, assignments and more
Other Options include:
Step 2: Select Your Top 3 Units
Once you have found the project you want to invest in, and reviewed the floorplans, select the units you most want to invest in. This will be based on:
- The unit to best fit your needs (one, one plus den, two, etc)
- The unit to best fit your budget
- The unit to best fit your investment criteria (your projected ROI)
Step 3: Sign Contract and Post Dated Checks
Most Contracts will have a Deposit Schedule that looks something like this:
- $5,000 due upon signing
- 5% less $5,000 in 30 days (since signing)
- 5% in 90-180 days
- 5% in 120-365 days
- 5% in 180-4230 days OR on Occupancy
10-Day “Cool Off” Period
Once you have secured a unit, signed all contracts and amendments, and gave checks, you will receive your Executed Agreement and have your 10-day “cooling off” period:
- Use your 10 Day to review the Agreement
- Get Legal review and advice
- Ask all your questions
Ontario allows buyers to cancel their contracts (at no cost and without penalties) within the 10 Day period. You may cancel during this period, get your checks back, at no cost to you. It’s the law!
What Happens Next?
Once your agreement has gone “firm” ie. the 10-day period is complete, you are now the official investor holding that unit you signed for. Congratulations! All you have to do now is wait for the project to be completed and keys delivered to you.