Why is Toronto Property Always Going Up In Price?
With the number of people moving to Canada for either business, school, or a better life, it is no surprise that the real estate business is growing at a rapid pace.
What About Affordability?
However, one thing is for certain: the future of certainly affordable housing in Toronto in the GTA is going to depend on density. Building upwards in major cities should be a priority to make sure that people coming here can live on their own terms. A key marker of success is being able to live well- and we want all new Canadians to have just this!
Why Is A Condo An Investment?
This fact is what creates value for most investors in Toronto. When focusing on financial necessity, very few people in the GTA have a million dollars in their account to purchase a home in the city of Toronto.
People must rent at least temporarily, and with the increasing population, the houses and condos for sale are becoming harder to find. Owning a condo for rentals and to sell down the road is an easy way to invest in Toronto and the GTA’s market.
So the big question is, why specifically should we be investing in pre-construction condos versus just buying resale condos?
Is it better to buy resell or is it better to buy pre-construction?
The answer to that question is: it is always better to buy pre-construction!
Now you must be wondering why that is…
#1: Condos hold value
First and foremost, because condos are commodities, the newest condos are the best condos to own.
- When you own the newest condo on the block, you have the condo that’s the most desirable from a resell and a rental perspective.
- You’re going to have the highest demand, and thus it’s going to command the highest prices and the highest rents.
- It’s also going to have the lowest maintenance fees.
#2: Newness means no renovation
Everything is brand new, so all the amenities, all the common areas, everything in the building that you can leverage as an owner.
This carries over to your unit. There is no need to modernize or renovate as long as you consistently move yourself or investment to newer buildings. It becomes a matter of slight DIY work and less TLC!
#3: Your Investment Grows Before It Is Built
Thirdly, if you can buy something that’s not yet built, or that’s not going to be built for three, four years at a cheaper price. In contrast: existing resale condos today that might be three, four, five, tens years older by the time the value increases.
By the time your preconstruction project is completed in a few years from now, those existing resale buildings have aged that same amount when your pre-construction building is complete and brand new.
So you’re going to sell your unit at a premium to what those units are going to sell for at that time in the future. As property values increase, you will experience all the benefits without your investment aging.
#4: You Will Buy Low and Sell High!
Lastly, you will be taking advantage of the differences between markets. Also known as “arbitrage”. It is when you have an opportunity to buy at a discount and sell at a premium. When you understand that basic idea you can see how you can make a significant profit when you’re able to purchase something for less than it’s worth and to sell something in a sense for more than it’s worth. Now that’s exactly the opportunity that is possible when you buy pre-construction.
Where Can I Buy Pre-Construction Condos?
Zia Abbas is a seasoned real estate professional who is an expert in preconstruction condos. By focusing efforts in trying to buy his clients the best possible investment and residence he has gained quite the reputation.
His commitment and large return client base have been noticed by builders and development companies and therefore he has the front of the line access to projects. That means the best first-day sale prices, incentives, and offers on condos that are in high demand.
How Can I Learn More About Pre-Construction Condos?
If you still have your doubts, don’t hesitate to call Zia. His client’s happiness is how he measures her success. Her goal is to listen to all his clients’ needs and then recommend a project. Based on instincts and experience he can find the best property matches for them.
He has a reputation for being upfront and honest with clients and will tell you the pros and cons so you know exactly what you’re getting.