7 Most Important Things To Ask Yourself When Buying Pre Construction!

By: Joerg Everding

7 Most Important Things To Ask Yourself When Buying Pre Construction!

Tags: What To Consider When a Pre-construction, Buying A Home, Buying Pre Construction, Pre Sales

There reasons for and against buying a condo or townhouse pre construction. But what do I need to consider and what can I look forward to before and after I made the decision to purchase? What are the risks and benefits involved?

1. Where Do I Want To Live?
Most immediate question to ask yourself before even looking for pre construction. Except if you are fully open and not bound by work or other obligations to a specific area! 

2. How much space will I need when it is supposed to complete?
Depending on construction type, a few years will likely go by before you can take possession of your new home/investment. Take family planning, up & downsizing into consideration before signing a contract.

3. Do I buy as an investment or for myself?
If you plan to invest and rent it  out after completion, you should consider what type of people that area is attractive. If family, then a 3-4 bedroom property would be a better choice. If it is more lifestyle and nightlife you might be better off with a 1-2 bedroom condo.

4. Do I have a deadline when to move out?
When your landlord gives you a deadline or there are any other reasons why you might have to move out on a fixed date, it might be a good idea to arrange something so you won't be homeless in case the completion date changes. Which is very common.

5. How much is the downpayment(s)? Do I have enough money?
15%-25% is common. Most of the time it is 20%. That depends a lot on how desirable the project and area is but also if we are in a sellers or buyers market. Rather than changing the down payment, most developers like to give other incentives. Make sure beforehand that you get a mortgage or that you will have your finances together.

6. Is buying pre construction a good investment?
This again is dependent on the market when you buy as much as when it completes! Regardless of if you want to sell it or rent it out. But in general I would say, yes it is! After completion there is a 10 year builders warranty on the building which gives you a piece of mind when renting it out or the buyer when purchasing it from you. ( Always inform yourself about local regulations about flipping a property).

7. Will I be able to rent it out?
Ask your realtor to make sure that this will be a possible to avoid trouble with Strata and your neighbours.

Before you make any decisions do a thorough research about the market and talk to a professional so that you have a piece of mind! Feel free to reach out if you have any questions regarding pre construction properties or buying and selling a property in general. 
Please be aware that those points are things I believe are the most important! You might have more questions which I will be happy to answer.