Enter the new home marketplace sooner rather than later!
They say that timing is everything, and in the new condominium market, that statement is true. Think about the people who purchased condo suites a decade or two ago, or even five years ago, and how much return-on-investment they have enjoyed. Mortgage interest rates are still amazingly low, and those who act soon can purchase at similar single-digit rates our parents and grandparents enjoyed. The moral of the story is to get into the new condo ownership market sooner rather than later.
First-time buyers today usually turn to condominiums for financial attainability, and owning a new condo is one of the wisest moves they can make toward their future. Building equity opens the door to numerous options as people age and life circumstances change. Nowadays, families are opting for condos as well, because the condo lifestyle frees up precious time they can spend together. Buyers who are right-sizing their lives to a condominium suite can achieve a more compact, convenient and fun lifestyle.
When considering timing, look at where condos are in the marketing /selling cycle. Projected occupancy dates may or may not fit in with your plans. If you buy early in the cycle shortly after a community is announced, you enjoy the best price and the most choice of suites, floors and views. Ask, too, about Grand Opening specials that can save you thousands. Again, depending on your plans, you may be happy to wait anywhere from three to six years to move in. This time can be used to save money toward your purchase and to plan for the move. And remember that you might earn equity even before you move in!
Then again, waiting until construction begins offers a lot of peace of mind to some purchasers. Once there is an obvious acceptance by the public and the developer can go ahead with construction, we typically see a jump in sales. You are wise to ask sales representatives whether you can still choose features and finishes if you wait for the onset of construction.
We also see a lot of condo buyers who prefer to buy late in a condo’s sales process so they can have a quick move-in, as the suites may already be built. Developers often offer the final few suites with special incentives that are incredibly attractive. You may have to select a suite finished with standards, but today’s level of standard appointments is so high, you are sure to enjoy beautiful, luxurious surroundings. Buying at this stage means you can start your carefree condo lifestyle right away.
You may also want to time your purchase with respect to location. For example, investors tend to buy in communities that are located in up-and-coming neighbourhoods, because prices are better before amenities are in place and the area’s revitalization is complete. Or perhaps you want to move into an already established location, and the increased price is well worth it to you.
So, when is the best time to buy a condo in the GTA? No matter how you slice it, the answer is NOW!
BARBARA LAWLOR is president and CEO of Baker Real Estate Incorporated, winner of the pinnacle 2017 Riley Brethour Award from BILD, and an in-demand columnist and speaker. A member of the Baker team since 1993, she oversees the marketing and sales of condominium developments in the GTA and overseas. Keep current with The Baker Blog at blog.bakerrealestate.com