Condo Market - Some Myths About Buying A New Condo: Fact or Fiction

By NextHome Staff
February 24, 2017
There are still a lot of misconceptions about buying a new condominium — even here in one of the ‘condo capitals’ of the world. A couple come to mind...MYTH #1: There are too many condominiums being built; we will have more than we need. That is FICTION. The FACT remains that one thing the 100 plus buildings we have under construction at any given time have in common is at least 75 per cent of the suites were pre-sold in order for them to get under construction in the first place. Many were sold out prior to starting, and in many cases, most of what was available prior to completion was sold during the construction phase.MYTH #2: The prices of condominiums are relatively high. That also is FICTION. The difference between the price of a new condominium and a new home is at an all time high and the spread continues to grow. We may be in a very long cycle of growth, but there is no good reason to think that affordability won’t continue to drive the housing market; hence this phenomenon won’t likely stop any time soon.MYTH #3: Buying New Means Long Wait Time until Completion: While it’s possible that this happens, this isn’t the norm and a reputable builder will do their very best to get you in your home as closely as possible to the original timing. Ensuring that you purchase from a builder with a solid track record will mean that you don’t wait too long. You can check out a builder’s history on TARION’s online builder directory.MYTH #4: Deposit payment are due right away. More FICTION. Whereas the builder needs bonafide deposits to obtain construction financing, they will often help you take the time you need to gather yours. Quality and trusted builders won’t require the full deposit at once and they will often work with you to spread them over a reasonable amount of time, provided that they meet the lender’s financial criteria.MYTH #5: involves a sense of fear of the safety of the deposit once handed over. Your deposit is fully protected up to and including the final closing; Tarion Warranty Corporation’s enrolment fee protects the first $20,000, the balance is secure as it is held in the Vendor’s solicitor’s trust account. So you’re safe in the unlikely event that the condo isn’t completed.MYTH #6: There are lots of surprises, some not pleasant, in the process. Again, more FICTION. Some buyers are concerned that they won’t get what they paid for. And others are concerned about hidden costs at closing or otherwise. Once again, this is where it’s important to do your research. Explore the presentation centre and take a close looks at plans, finishes and amenities. Ask questions ‘en masse’ and if you like, visit other buildings by the same developer to see what they’re like. Ask about closing costs and what the builder will do to cap and/or eliminate some of them. The reputable builder won’t hide anything from you and they’ll be completely transparent in this regard.MYTH #7: The best choice suites are always sold at the beginning of the project . While this happens often, sometimes buying after the opening has its advantages. Builders often hold choice suites, or in some cases, they will change the configuration of suites to suit the wants of the buyer based on their specific needs. Combining suites; two into one, three into two, often provides buyers with something truly customized with their personal preferences in mind. A terrific example of this can be found right in the heart of our great city at “The Davies” by Brandy Lane. Soon to rise on Avenue road where Forest Hill meets Yorkville, a limited selection of large expansive suites wrapping around two corners of the building are newly designed and available, a pure reflection of that builder’s desire to give purchasers everything they could ever want in a condominium; a combination of innovative design and function, incorporating house like features often not found in the most luxurious new condos anywhere. This builder is offering the best of the best in a trophy location where Avenue Road leads both up and down to the city’s most valuable location.This is happening in other projects in the location of your choice; sometimes it’s just a question of asking for what you want! Happy hunting....MARK COHEN is a founding partner of The Condo Store Marketing Systems, a firm specializing in the design, marketing and sales of condo and new home communities in and outside of the GTA.condostorecanada.commark@condostorecanada.com

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