Some Hidden Facts To Know About Pre-Construction Condos
A pre-construction condo is often available in the early stages of development, which means the buyer may have access to the unit before the building is finished. The pre-construction period doesn’t allow the buyer to make mortgage payments until the building is complete. Still, you’ll have to pay the developer an occupancy fee each month until the building is finished. There are some commonly believed myths about buying a preconstruction in Mississauga. These myths range from down payment requirements to the cost of living.
They are more expensive:
There are a lot of misconceptions about buying a pre-construction condo. These myths make buying a pre-construction condo scary to first-time home buyers. These condos are more expensive than newly built ones and require much more work. However, if you’re willing to put in a little extra effort, you can save a significant amount of money.
You need to put down a large deposit right away to make a purchase:
Another commonly held myth about buying a pre-construction condo is that you must immediately put down a large deposit to make a purchase. While this is true to some extent, it is not necessary. You can pay your deposit over several months, allowing you time to save for the full amount. This way, you can avoid unexpected costs and unexpected issues.
Down payment requirements:
Pre-construction condominiums usually require a larger down payment than resale condominiums. While 5% is typical, some developers require as much as 20 percent. This makes it more difficult for buyers to afford the entire down payment, but some developers offer deposit structures that let them pay the down payment over time.
If you purchase a pre-construction condo, you know the possible delays. These delays are often the result of supply chain problems or labor shortages. Regardless, it would help if you considered the following tips to avoid delays in your pre-construction condo purchase.
The first thing you should do is check the builder’s timeline. You should ask if construction has begun and the construction permit has been obtained. If not, it could mean a substantial delay. Also, ask what percentage of the units have been sold. Many builders cannot sell a large enough number of units based on their plans, which leads to construction delays.