What points do you consider if you want to buy a pre-construction house? There are so many projects under construction that you should have a consultant to make the best decision within your budget. Let me make your dream, and give this warning that Buying a townhome can be as rewarding as it can be, but it can also be a hassle. But fear not; the professional GTA Home Network team has written this comprehensive guide you are reading so you can pre-construction your desired townhome without any worries.
What Is The Meaning Of Pre-Construction Townhomes?
If you buy a townhome before its construction is completed, it means that you have pre-construction. The most critical competitive advantage of the pre-construction house is that you pay less for the purchase than other people who buy after the completion of the project. But this is not the only advantage; the pre-construction of a house has unique advantages; of course, it also has disadvantages and risks that we will discuss together.
Top Cons Of Pre-Construction Townhomes In GTA
If you plan to pre-construction a house, consider the disadvantages as much as you think about its advantages.
- Delivery time delay
Delay in delivery is another negative risk to consider. Usually, in pre-construction contracts, there are clauses related to delay by the manufacturer. The buyer should read these points carefully before making the final decision and ask for help from a real estate agent if needed.
- Failure to build the project in the specified time
One of the issues the buyer may face is the failure to build the project on time. If this happens, the delivery of the house will be delayed, and the buyer may even have doubts about buying the house.
- Disapproval mortgage
Another risk of the pre-construction of a house is that conditions may change when you apply for a loan. The buyer may be unable to get a loan due to job loss or reduced income. Another situation is that banks’ lending conditions change, and the buyer needs the necessary conditions to obtain them.
The Pros of Pre-Construction of Townhomes That You Should Know
Pre-construction of a townhome is an exceptional opportunity that can be very rewarding if executed correctly. Do you want to check the benefits of the pre-construction house together?
- You become the owner of a newly built home
One of the benefits of pre-construction of a townhome is getting a newly built townhome. Naturally, a newly built unit has fewer problems and lower maintenance costs than older apartments. So you don’t need to spend time and money on repairs. You can ask us if you want to know how much your home is worth.
- Buy at a lower price
At the beginning of the sale of project units, builders consider concessions and discounts for those who buy first. Therefore, those who buy units at the beginning of the sale will pay less for the purchase.
- Buying a property with a small down payment
Sometimes, the buyer may need more financial ability to pay for the common down payments of buying a house all at once. The good news is that in the pre-construction of the house, scheduled and gradual payments are made over one to several years, and the buyer does not experience any pressure.
This cash-out opportunity is particularly suitable for those who need to sell another property first, selling their first townhome at the right time for a good price without rushing.
- Participation in the selection of materials used
We all like to choose the colour of the rooms, tiles and cabinets of the house according to our taste. In the pre-construction of the house, this opportunity is provided for the buyer to choose the desired materials from among the available colours and designs. This allows the buyer to have a unit as close to his taste. While buying a built unit and changing it to desired design is very costly and sometimes impossible.
- Security of initial capital
Unlike other investment markets, the capital is reserved when pre-purchasing an apartment. Many think that the builder uses this money to build the project, but the reality is something else. By law, buyers’ deposits are held in an escrow account and can only be withdrawn once the project is completed.
- Less headache for investment
Pre-purchasing and selling an apartment after delivery is less hassle than other real estate investments, such as buying or renting a home. The most important advantage is that you are freed from messing with the tenant and facing negative risks such as non-payment of rent or damage to the unit. In addition, with the initial down payment, you become the owner of a housing unit.
- Use of new materials
In pre-construction house projects, the newest and most up-to-date materials are usually used to minimize energy consumption. All the used accessories are in fashion, so you will definitely like them. Another positive point is that if you intend to sell your unit, due to the eye-catching nature of these materials, you can quickly and without worry sell it at a reasonable price and make a profit.
Top Points To Keep In Mind Before Pre-Construction
We know the advantages and disadvantages of buying a house in advance, but more is needed. For the pre-construction process of your house to be successful, you must follow some points:
- If you plan to invest, be careful in choosing the right place.
- Ask for help from well-known, reliable builders with experience building several successful projects. You can ask the GTA Home Network consultants for help introducing the best projects.
- Write all the points in the contract arranged between you and the seller.
- Pre-construction a townhome that you can afford.
Townhome pre-construction is one of the trending topics that we hear a lot about. Due to the importance of this issue, we have prepared a comprehensive guide so that those who need experience can make better decisions and avoid losses. You can read in this guide the most important advantages of pre-construction a house, its disadvantages and points to be observed when registering. If you need more advice and guidance, you can contact our consultants.