We are often approached by clients who purchased a pre-construction condo unit in previous years, are nearing building completion date and are now anxious to sell their unit(s). But buying from plans doesn’t automatically equal a windwall 3-5 years down the road.
The Globe and Mail had a great article about the risks of buying pre-construction. Hats off to our own Brian Persaud of Keller Williams Advantage Realty, whose book “Investing in Condominiums” is featured here.
If you’re considering such an investment, make sure you speak to a real estate professional who is an expert in your market. And do it BEFORE you visit a builder, so that they can advise you on the pros and cons of the neighbourhood, Builder reputation, whether or not the prices are reasonable and if you can actually expect to benefit in the long run. A good agent will also walk you through the contracts in detail and give you a clearer picture of what you can expect while you wait for the building to be built. Do this before you start the process, in addition to taking your contract to a lawyer after you sign on the dotted line.
