Nov 15, 2024
Pre-Construction
Sabina Hassan
Real Estate Broker
When it comes to buying real estate, many people envision a classic resale property, with established finishes, a fixed layout, and, often, a bit of a “lived-in” feel. But an increasing number of savvy homebuyers and investors are turning to pre-construction properties, and for good reason. Whether you’re looking for a new home to live in or an investment that will grow over time, buying pre-construction can offer unique advantages you won’t find with resale properties.
Below, we’ll explore the top benefits of buying pre-construction real estate and why it might be the perfect choice for your next property purchase.
One of the biggest draws of pre-construction is the price advantage. Builders often sell units at a lower cost during the early phases of a project. This means that buying pre-construction can allow you to lock in a lower price compared to similar completed properties. By the time the project finishes, property values in the area may have risen, potentially providing you with immediate equity gains.
Pro Tip: Early buyers, especially those who purchase during the “VIP” or “friends and family” stages, often benefit from the best pricing and access to premium units.
Buying pre-construction allows for a level of personalization that’s typically not possible with resale properties. Many developers offer a variety of finishes, layouts, and upgrades that let you customize your future home to your tastes and lifestyle. From choosing kitchen finishes and bathroom fixtures to selecting flooring and cabinetry, pre-construction buyers often have the opportunity to make the space their own.
Pro Tip: Opt for neutral and timeless finishes that can boost resale value if you decide to sell later. Classic materials like hardwood floors and natural stone are always in demand.
Pre-construction projects are designed to meet today’s lifestyle needs and often include modern amenities that can greatly enhance your living experience. Features like fitness centers, co-working spaces, rooftop terraces, and state-of-the-art security systems have become standard in many new developments. Older properties may not have these amenities or the infrastructure to support modern technology, which can make a difference in comfort and convenience.
Pro Tip: If you’re purchasing as an investment, amenities like gyms and entertainment rooms can also make the property more attractive to renters, boosting rental income potential.
Most resale purchases require immediate financing and a single closing, but pre-construction offers a staggered payment structure. Buyers typically pay an initial deposit and then make scheduled payments over the course of the building’s development. This can make it easier to save and plan, especially if you’re buying your first home or adding to an investment portfolio.
Pro Tip: Review the payment schedule carefully to ensure it aligns with your budget and financial plans. Consider speaking with a mortgage advisor who specializes in pre-construction for tailored advice.
5. Warranties and Peace of Mind
New builds usually come with extensive warranties that cover structural issues, building systems, and sometimes even appliances. This can provide buyers with peace of mind, knowing that if anything goes wrong within the first few years, the builder will address it. In Canada, for example, Tarion warranties provide coverage for up to seven years on structural defects in new homes.
Pro Tip: Review the warranty terms so you know what’s covered and understand any additional warranties offered by the builder for specific finishes or appliances.
One of the most appealing aspects of pre-construction purchases is the potential for appreciation. In many cases, property values increase significantly between the initial sales phase and the time the project is completed. Buyers who purchase at the earliest stages may find that their property is worth considerably more by the time they take possession.
Pro Tip: Consider the location carefully, as some neighborhoods appreciate faster than others. Areas with new infrastructure, transit improvements, or urban revitalization projects are often great spots for pre-construction investments.
While there are many benefits to buying pre-construction, it’s essential to weigh these against potential drawbacks, like longer wait times for completion and the risk of delays. However, if you’re looking for a modern, customizable, and potentially lucrative investment, pre-construction could be an excellent option.
Remember, working with a real estate professional who specializes in pre-construction properties can make a huge difference. They can provide insights into the best projects, negotiate favorable terms, and guide you through the process from start to finish.
If you’re interested in learning more about upcoming pre-construction projects or want to explore specific developments, reach out to our team. We’re here to help you find the perfect pre-construction opportunity that aligns with your lifestyle and investment goals.