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There are many phases before the condo becomes habitable. The pre construction condo market is booming, thriving, almost 86% of the city’s horizon is a residential building, yet the demand is creeping up. From acquiring the land to occupancy, there are many phases building an apartment.
Pre construction sale
Building condo is pretty capital extensive, so the developer raises fund, before the construction phase. Typically try to sell 70% of the floor area, banks or lenders ask for 70% of the project’s total revenue before sanctioning the loan amount. The developer tries to sale the units to his acquaintances and family members; on the second phase, the builder deploys agents on a commission basis. This offer is exclusive, and many times the commission is not disclosed. The potential buyers can choose from the sanctioned floor plan of the building. The unsold apartments are offered to the public, who can buy a condo without a real estate agent.
By paying $5,000, the buyer can sign the deed of sale and purchase, followed by three installments of 5% of the balance over the first year. After getting the letter of allotment/ occupancy, the buyer pays full and final. On the other hand, if you want to buy a completed condo at least 20%, down payment is required. While the apartment is under construction, your money earns the bank interest.
Construction phase
After the developer raises the required fund, he starts the construction phase. It takes around one-third of the total project time to excavate, build foundation and underground parking. One the foundation is laid structural construction like columns, beams, frames and floor slabs are fortified. As the upper floors are in progress, utilities like electricity, water pipeline, sanitation are installed on lower floors. After complete utility installation and drywall installation, the work progress to subsequent floors.
The exterior works begin with the ground floor, which includes fixing windows, doors, and other furniture and fixtures. In this phase, the onlooker gets an impression of the overall appearance of the condo. Before occupancy, the developer contacts the buyer for color selection and finishes to complete the interior jobs.
Investing in Toronto pre construction condos is one of the surest ways to make a profit in the long term. Real estate is cyclical as any other financial market. It is better to book a condo when the market is stale, then waiting for a sign of revival. If you hold the property till the market is booming, you make a decent return on investment (ROI).
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