Why Buy a Pre-Construction?
The price of the preconstruction unit is cheaper than buying a unit after construction is completed.
When you buy a pre-construction unit, you can customize your unit to some extent. The developer will give you options as they are building your
pre-construction and you can choose among them. Also, you can increase your newly bought property’s value in the pre-construction stage by choosing to make additions like a separate entrance or finished basement.
One of the best advantages of purchasing pre-constructions is the deposit payment structure. In most cases when you buy a resale house you need to pay approximately 20% of the buying price until the closing date. But in preconstruction there is a different payment structure. Instead of putting the 20% down payment on closings, the developer is collecting the down payment in a much longer time period which in most of the time is spread out over 4 years.
When you buy a pre-construction house or a unit, you don’t need to worry about keeping your house maintained or fixing things for a long time. Everything will be new and under warranty.
When buying pre-construction, you don’t need to get the mortgage until the completion of the development which is the time you will take possession and so you have time to improve your credit score until then.
Higher Resale Value
Buyers are more likely to pay higher prices for a brand-new home than a house/unit that is 15 years old.
In most cases, if you need to sell your unit before the completion of the construction you can do that too! This means you can sell your unit before getting a mortgage for it and you can sell your pre-construction unit at a potentially higher than what you paid for it. This is a great way to invest!
No bidding wars or multiple offers to contend with when buying a pre-construction.
Cooling Off Period
You’ll have a cooling off period of 10 days after you sign a pre-construction deal. This is a significant advantage for pre-construction buyers as it allows you the time and space you need to perform your due diligence. If you decide to not continue with the transaction during these 10 days, you can get out of the agreement penalty free and get your signing deposit back.
No Bad Surprises
After you move into your preconstruction, you will not face any bad surprises like an old roof in bad shape or a furnace system that stops working after you move in.