The Toronto real estate market has quite a good amount of pre-construction condominiums that you can invest in. And there’s no doubt about the fact that a pre-construction condo investment can be quite beneficial for the investor. There are so many different factors that determine a Condo’s market price. Before investing, you should be aware of these determining factors to ensure that you’re getting the right value for the investment you make.
1. Location is the key!
There’s no arguing about the fact that when investing in a real estate property, the most important determining factor is the location. If you choose to invest in a property located in a trendy area then you’ll obviously have to spend a fortune. But if you choose to bid on a property that’s set in a more remote neighborhood and wait till you get a good deal then it might prove to be rather beneficial. Although you can’t predict what a neighborhood would look like in a few years, there are a few constant factors that help determine a location:
● Amenities: If there are a lot of amenities like hospitals, restaurants, shopping centers, schools, universities, etc available close by then that’s surely a highlight.
● Demographics: The kind of people that lives in a neighborhood tells a lot about the place and attracts similar tenants – students, professionals, families, etc.
● Transit access: Who doesn’t love a property that’s close to public transit? Condos near transit systems are extremely convenient for the renters which means greater value for the property.
● Walkability: If a property is only at a walkable distance from grocery stores, cafes, drug stores, and other necessities then that adds quite a value to the property in the market.
● Future projects: Future projects help determine what the neighborhood will look like in a few years. Pre-construction properties take a few years to complete construction so this is a huge determining factor.
2. The builder’s reputation.
The builder has a huge role to play when it comes to assessing a property. A no-so-trustworthy developer might offer apartments for reasonable prices in a great location but don’t fall for it. It’s always better to play it safe and buy from a reputable builder. This reduces the risk of buying pre-construction properties. To build up an authentic brand name you need years of experience. And with years of experience comes expertise. Such builders would know what’s best and what’s not. They would know all about locations, property value, the real estate market, and much more.
Hence you would have less to worry about. To assess a property, you need to first assess the builder based on:
● Their previous projects.
● Their active years in the field.
● Their performance in the resale market.
● Their property development delays.
3. Property Value.
Investing in a Pre-Construction property means that you’re obviously planning for resale. In that case, you must closely evaluate the value determining factors related to the building. Let’s check them out:
● Floor plan: This is a game-changing factor. The floor plan of the unit is the soul of the property. If anything goes wrong with the floor plan then that will greatly affect the market value of the property.
● Comparable projects: It’s always good to study the resale value and history of similar units nearby. This will help you get a more clear idea about your unit and how much it can sell for in the market.
● Amenities included: Tenants would love it if they wouldn’t have to step out for amenities like a pool, gym, meeting area, and much more. Amenities surely add to the value of a property.
● View: Although this is not a huge determining factor, it definitely makes a bit of difference. Waking up to a good view sure sounds soothing right?