2024 Construction Trends in Pre-Construction Condos in Toronto
Toronto’s real estate landscape is ever-evolving, with pre-construction condos becoming an increasingly popular investment and home buying choice. In 2024, it’s crucial that we understand the trends shaping their development within Toronto. In this blog, we’ll explore key construction trends that are expected to continue to shape pre-construction condos within Toronto’s real estate market.
Green Buildings, Smart Technology, Luxurious Amenities
The sustainable and green construction practices within the real estate industry continue into 2024 (read more about this in our “The Future of Pre-Construction in Toronto: Trends and Predictions” blog post from May 2023). Pre-construction condos frequently prioritize energy efficiency, green building materials, and sustainable design elements such as solar panels, energy-efficient appliances, and green roofs as ways of appealing to eco-conscious buyers.
Buyers are also increasingly looking for properties that offer smart technology features such as automated lighting, climate control, security systems, and voice-activated assistants, and developers are responding by including these technologies in their condo designs to provide residents with a seamless living experience. Read more about smart home technology in our blog post “Exploring the Top 2024 Interior Design Trends for Condos.”
Additionally, buyers can expect more lavish amenities such as rooftop gardens, fitness centres, swimming pools, concierge services, and co-working spaces in 2024 condos. This will enhance overall living experiences and attract discerning buyers who value premium lifestyle features.
Image: Strata
Unique Architectural Designs
Architectural design plays an essential role in ensuring the success of pre-construction condo projects, and this year we’re continuing to see innovative and eye-catching designs that set new standards for urban living in Toronto. We can expect to continue witnessing towers featuring modernist features alongside mixed-use developments with residential, retail, and commercial spaces. Developers are pushing boundaries to create iconic structures that transform Toronto’s skyline.
Focus on Health and Wellness
Pre-construction condo developers are placing increased importance on creating living environments that support well-being. Fitness centres, yoga studios, meditation rooms, green spaces, and other features and amenities that help to create healthy living environments will become one of the key selling points of new condo developments in Toronto.
Adaptability and Flexibility in Design
Flexibility has become increasingly important when designing pre-construction condos, as buyers look for spaces that adapt to their changing lifestyles and needs. Looking ahead, we can expect more multifunctional floor plans featuring options for customization as well as multifunctional spaces. Developers are creating layouts that maximize space efficiency while giving residents the ability to personalize their living spaces.
Virtual and Augmented Realities
As technology progresses, its integration into real estate transactions becomes more prevalent. In 2024, buyers should expect virtual property tours, interactive floor plans, and digital staging tools that provide realistic previews of pre-construction condos. This technology not only enhances buyers’ buying experiences but also allows them to visualize their future home in a more immersive fashion.
Conclusion
Construction trends shaping pre-construction condos in Toronto for 2024 reflect an innovative real estate market that continues to adjust and adapt to the ever-evolving needs and preferences of buyers. Sustainable green buildings, smart home technology, luxurious amenities, and adaptable designs are being adopted by developers in order to craft exceptional living spaces for residents. Looking toward the future, Toronto’s pre-construction condo market will continue its flourishing presence with buyers having access to options tailored specifically toward their lifestyles and preferences.
What construction trends in Toronto’s pre-construction condo market are you most excited to see? Connect with BAZIS on social media (Facebook, X, or Instagram) and let us know!
Why You Need a Real Estate Agent When Buying a Pre-Construction Condo in Toronto
Purchasing a pre-construction condo in Toronto can be an exciting yet complex endeavour. Navigating through the myriad of options, understanding the market, and making informed decisions require expertise that goes beyond general knowledge. This is where the role of a real estate agent becomes indispensable. Engaging an experienced agent can not only save you time and money but also offer invaluable insights and advantages throughout the buying process. Here are the key roles a real estate agent plays in purchasing a pre-construction condo in Toronto.
Understanding Key Market Trends
Real estate agents have an in-depth understanding of the Toronto real estate market, staying up to date with the latest developments and trends. This knowledge allows them to offer insights into the most desirable neighbourhoods, upcoming projects, and potential growth areas. Their familiarity with the market can help you identify opportunities that align with your preferences and financial goals.
Recommending the Best Projects
One of the primary roles of a real estate agent is to assist you in determining your criteria for a new condo, and how realistic they are given current market conditions and budget constraints. For pre-construction condos in Toronto, a specialized agent can recommend reputable projects backed by reliable developers and financial partners. Their established relationships with developers can provide you with early access to projects, floor plans, and special incentives.
Securing Special Access to Incentives
While public MLS listings are available to everyone, real estate agents often have access to exclusive, coming-soon listings. Their extensive network allows them to get you in to see a property before it officially hits the market. Developers frequently offer agents special access to pre-construction projects, giving their clients a competitive edge. These incentives can include preferred pricing, selection of units, and other benefits that might not be available to the general public.
Reading Floor Plans
Understanding floor plans is not a common skill among buyers, but it’s something an experienced agent excels at. They can explain the layout, show where key features are located, and help you visualize your future home. This understanding can be crucial in deciding whether the unit meets your needs or requires adjustments.
Expert Negotiation Skills
An experienced real estate agent is great at price negotiation, ensuring you get a fair deal. They understand the negotiating factors involved in purchasing pre-construction condos and can advise you on making the best offer. Their negotiation skills can help you secure the best possible price for your new home, which is crucial in a competitive market like Toronto.
Understanding the Total Cost
Buying a pre-construction condo involves more than just the upfront cost. An experienced agent can provide a clear estimate of closing costs, monthly condo fees, and other expenses. They use their knowledge of the neighbourhood, developer, and amenities to give you a comprehensive understanding of the financial commitment. This information is key for budgeting and determining whether a particular condo fits your financial plan.
Navigating Upgrade Options
Pre-construction condos often come with various upgrade options. A knowledgeable real estate agent can guide you through these choices, explaining the costs and benefits of each. From appliances to flooring, making informed decisions about upgrades can help you stay within your budget while creating your dream home or investment property.
Protecting Clients’ Interests
Buying a pre-construction condo can come with distinct challenges like construction delays, design modifications, or unexpected issues. A real estate agent serves as a mediator, helping you to navigate these obstacles and safeguard your interests. They also help to ensure that any problems are addressed promptly and effectively.
Recommending a Real Estate Lawyer
Just like a skilled agent, a good real estate lawyer can help you avoid potential problems by negotiating terms, pointing out red flags, and ensuring all contracts are in order. Experienced agents typically have a network of reliable real estate lawyers they can recommend, providing you with additional peace of mind.
Managing Project Updates
Keeping track of developments and updates in a pre-construction project can be overwhelming. A real estate agent will keep you informed about deposit schedules, construction progress, and any decisions that need to be made along the way. This helps reduce stress and ensures that you stay on top of important milestones.
Assigning Units
If you want or need to sell your unit before completion, a real estate agent can assist with assigning it to a new buyer. Their connections with buyers and investors can be invaluable in this process, helping you leverage their network to find a suitable buyer quickly.
Educating Buyers
Throughout the buying process, a real estate agent provides insight and answers any questions you may have. They help you understand every aspect of the transaction and ensure you’re well-informed to make the best decisions.
To conclude, the role of a real estate agent in buying a pre-construction condo in Toronto is multifaceted and essential. From providing market insights and negotiating deals to managing project updates and educating buyers, their expertise and support can make the entire process smoother and more successful. Engaging an experienced agent ensures that your interests are protected and that you make well-informed decisions throughout your journey to owning a new home.
Do you have any questions about the role of a real estate agent when buying a pre-construction condo in Toronto? Contact us today or Connect with BAZIS on social media (Facebook, X, or Instagram) and let us know!
Considering Using a Property Management Company? Here’s What You Need to Know
Investing in real estate can be a lucrative way to build wealth, but managing properties requires time, expertise, and effort. Property management companies can help investors maximize their returns and minimize the headaches associated with being a landlord. Are you a Toronto real estate investor considering hiring a property management company? Here’s what you need to know:
The Benefits of Hiring a Property Management Company
- Efficient Rent Collection: Property managers streamline rent collection with regular office hours and online payment options, ensuring consistent cash flow.
- Reduced Vacancies: Experienced managers reduce vacancy periods by finding and retaining high-quality tenants through effective marketing and tenant screening.
- Appropriate Rent Pricing: Property management companies use market data to set competitive rent prices, balancing maximum revenue with tenant affordability.
- Property Maintenance: Regular maintenance and prompt repairs by property managers help maintain and increase property value, preventing small issues from becoming costly problems.
- Legal Compliance: Property management companies ensure all lease agreements comply with local regulations, reducing legal risks.
- 24/7 Support: With round-the-clock emergency services, property managers handle urgent issues, freeing landlords from late-night calls.
- Accounting and Tax Assistance: Property management companies provide year-end financial summaries, making tax preparation easier and more accurate.
- Cost Savings: Property managers often get discounted rates from contractors due to their volume of work, passing savings onto property owners.
Considerations for Investors
While property management companies offer numerous benefits, there are considerations you’ll want to keep in mind as a smart investor. These include:
- Cost: Management fees can range from 5% to 10% of rental income. However, the efficiency and expertise they provide often result in higher overall profitability.
- Transparency: It’s crucial to choose a reputable company that is transparent about their fees and services. Review contracts carefully to avoid hidden charges.
- Relationship Management: A good relationship with your property manager is vital. Clear communication and regular updates help ensure your investment goals are met.
Key Takeaways
Hiring a property management company can significantly enhance the profitability and sustainability of real estate investments. They handle the day-to-day operations, allowing investors to focus on growth and acquisition. However, it’s important to select a reliable and reputable firm to ensure you receive the full benefits.
For those considering whether to hire a property manager, weighing the pros and cons and understanding the financial implications is essential. Ultimately, a well-chosen property management company can be a valuable partner in your real estate investment journey.
In Conclusion
Property management companies offer a host of advantages that can make real estate investing more manageable and profitable. From efficient rent collection and reduced vacancies to legal compliance and cost savings, their services can transform the way you manage your investments. By carefully selecting a reputable firm, investors can enjoy the peace of mind and financial benefits that come with professional property management.
If you’re considering investing in Toronto real estate, we have plenty of tips for investors of all types. Learn why it’s the perfect time to invest in Toronto’s pre-construction market, the importance of location when buying pre-construction condos in Toronto, how to make your Toronto condo more renter-friendly, and plenty more on our blog (check out the handy Investors section).
Questions? Comments? Connect with BAZIS on social media (Facebook, X, or Instagram) and let us know!
Boost Your Rental Appeal: How to Make Your Toronto Condo Renter-Friendly
Investing in a condo in Toronto can be a great way to earn a steady rental income. However, with the competitive rental market, making your condo stand out is crucial. Here are some tips to make your condo more renter-friendly and attractive to potential tenants.
Apply a Fresh Coat of Paint
One of the simplest and most cost-effective ways to give your condo a facelift is with a fresh coat of paint. Neutral colours like soft greys, beiges, and whites are always a safe bet as they appeal to a wide range of renters. These colours make spaces look larger and more inviting, creating a blank canvas that potential renters can easily envision as their own.
Upgrade the Appliances
Old, outdated appliances can be a major turn-off for renters. Investing in new, energy-efficient appliances can not only attract more tenants but also save on utility costs. Stainless steel appliances are particularly popular as they add a modern touch to the kitchen. Look for energy-efficient models that appeal to environmentally-conscious renters and can lower utility bills. If you’re looking to rent out a newly-purchased condo, this condo will have likely already come with brand new, top-of-the-line appliances, which is one of the many benefits of buying new.
Modernize the Flooring
Replacing old carpets or outdated flooring can have a big impact on the look and feel of your condo. Hardwood or high-quality laminate flooring is highly desirable due to its durability and easy maintenance. For areas like the kitchen and bathroom, consider stylish and waterproof options like tile or vinyl planks. These upgrades can instantly make your condo feel more modern and well-maintained.
Again, if you’re renting out a brand new condo, this is not something that you’ll need to worry about.
Invest in Kitchen Upgrades
The kitchen is often the heart of the home, and a well-designed kitchen can be a major selling point for renters. Consider upgrading countertops to granite or quartz, installing a stylish backsplash, and updating cabinet hardware for a fresh look. Even small changes like replacing the faucet or adding under-cabinet lighting can make a big difference.
Consider Bathroom Upgrades
A clean, modern bathroom can significantly boost your condo’s appeal. Consider installing a new vanity, upgrading to a contemporary sink, and replacing old fixtures with modern, stylish ones. Adding extra storage options like shelves or cabinets can also be a big plus for renters. Simple touches like a new shower curtain and updated lighting can make the space feel brand new.
Boost Appeal with Smart Technology
Incorporating smart technology can make your condo stand out in a competitive market. Smart thermostats, lighting systems, and security features such as smart locks or cameras can appeal to tech-savvy renters. These upgrades not only enhance convenience but can also improve energy efficiency, which will save you money in the long-term.
Enhance Storage Solutions
Condos often come with limited storage space, so maximizing every inch is crucial. Adding built-in shelving, closet organizers, or even installing a Murphy bed can help make the most of the available space. Renters will appreciate thoughtful storage solutions that help keep their living space organized and clutter-free.
Include Pet-Friendly Features
Pet ownership is common, and many renters look for pet-friendly accommodations. Welcoming pets can broaden your potential tenant pool. To make your condo more appealing to pet owners, consider durable, scratch-resistant flooring and installing pet-friendly amenities like a small built-in pet bed or feeding station. Ensure your condo building’s rules align with your pet policy and clarify any size or breed restrictions in your listing.
Create an Appealing Balcony
A balcony is a highly desirable feature for many renters, offering private outdoor space in the heart of the city. Make your balcony more inviting by adding durable, weather-resistant furniture and plants. Consider installing privacy screens or balcony flooring tiles to enhance comfort and aesthetics. Ensure the balcony is well-maintained and safe, with secure railings and a clean, appealing look.
Wrapping It All Up
Making your condo more renter-friendly doesn’t necessarily require a massive investment. Small, thoughtful upgrades can significantly boost your condo’s appeal and help you attract and retain quality tenants. Whether it’s a fresh coat of paint, modern appliances, or smart technology, these improvements can make your condo an even more desirable place to live in Toronto’s competitive rental market. Investing in these upgrades not only increases your rental income potential but also enhances the overall value of your property. So, roll up your sleeves, make some strategic updates, and watch as renters flock to your beautifully improved condo so you can reap the benefits of your condo investment.
Which upgrades do you think attract renters the most? Connect with BAZIS on social media (Facebook, X, or Instagram) and let us know!
The Importance of Location When Buying Pre-Construction Condos in Toronto
Location can make all the difference when investing in pre-construction condos in Toronto, and one of the key influences on investment success is location. Finding an ideal property location will not only increase your new home or condo’s value, but can also enhance your quality of life. In this blog post, we’ll examine why location should matter when making investment decisions in pre-construction condos in Toronto.
Downtown Toronto: At Its Core
Downtown Toronto is one of the premier locations for pre-construction condos, with its vibrant atmosphere, cultural attractions, and close proximity to major business districts all converging to create a great investment opportunity with promising returns. From its top restaurants to world-class entertainment venues, downtown Toronto is not only an attractive investment choice but a great place to live.
Emerging Neighbourhoods: The Next Hotspots
Although downtown Toronto remains the primary focal point for real estate activity, several up-and-coming neighbourhoods in Toronto should also be taken into account for pre-construction condo investments. Liberty Village, King West, and Leslieville have seen rapid development over recent years, making them all promising locations for long-term appreciation in property value. These vibrant districts feature trendy cafes, boutique shops, and green spaces for an engaging urban lifestyle, making them ideal choices for young professionals as well as families seeking dynamic urban lifestyles.
Accessibility and Transportation: Key Factors
Accessibility and transportation options should also be considered when looking at pre-construction condos in Toronto, as this can increase desirability significantly. Being close to public transit options like the TTC subway and GO Transit makes commuting simpler, while being near major highways such as the Gardiner Expressway and Don Valley Parkway provides convenient access across Toronto and beyond.
Elevate Your Experience: Amenities and Lifestyle
Amenities and lifestyle offerings near a pre-construction condo can play an instrumental role in its value and appeal. Choose neighbourhoods that feature parks, recreational facilities, shopping centres, dining options, and experiences that meet your personal lifestyle preferences, be they urban or suburban. Investing in properties that match these preferences will result in greater returns over time.
Building Bright Futures: Access to Schools and Education
For families with children or those looking to the future, access to high-quality schools and educational institutions should be an important consideration when purchasing pre-construction condos in Toronto. With a diverse array of public, private, and specialized schools available in this city offering educational opportunities suitable for students of all ages, investing in an area near quality educational facilities can not only increase the value of your property but also foster its growth and development for generations of families to come.
To conclude, location cannot be underestimated when buying a pre-construction condo in Toronto. Whether you prefer city living or the more charming surroundings of an up-and-coming neighbourhood, selecting an ideal spot can have a dramatic effect on both your investment performance and overall quality of life. By carefully considering factors such as accessibility, amenities, schools, and lifestyle offerings, you can make informed decisions that align with both your investment goals and personal preferences, ensuring a successful real estate venture right here in Toronto!
What do you think is the most important factor when considering location for a new home? Connect with BAZIS on social media (Facebook, X, or Instagram) and let us know!
End User’s Guide to Buying Pre-Construction Condos in Toronto
If you’re considering buying a pre-construction condo in Toronto, you’re in for an exciting journey. Toronto is known for its vibrant real estate market and many pre-construction condo opportunities. However, purchasing a pre-construction condo requires careful planning and research. In this guide, we’ll walk you through the essential steps involved in buying a pre-construction condo in Toronto.
What Is a Pre-Construction Condo?
Pre-construction condos are new condominium units that are sold before they’re built. The primary advantage of buying pre-construction condos is that buyers can get a lower purchase price. If the condo market is rising when the unit is completed, the buyer can usually sell the property for more than the purchase price. Additionally, buyers have the opportunity to pick their preferred units from the available floor plans and building specifications, and to select the features and finishes that best suit their personal style and lifestyle. That means customization and affordability are additional benefits of buying pre-construction condos.
Next, here are the steps you’ll want to take if you’re considering buying a pre-construction condo in Toronto or the Greater Toronto Area.
Research the Market
Start by doing thorough research of the condo market. Understand the current trends, demand, and supply dynamics in Toronto. Look at factors like location, amenities, transit options, and future developments in the area. Familiarize yourself with the price range for pre-construction condos in different neighbourhoods and assess what fits your budget and lifestyle.
Understand the Timeline
Pre-construction condos have longer timelines compared to resale properties. Understand the estimated completion timeline for your chosen project. Developers usually provide an estimated occupancy date, which is when the building will be ready for residents to move in. Keep in mind that delays can happen due to various factors, including construction issues, weather conditions, or unexpected circumstances. Prepare yourself for potential delays and plan your living arrangements accordingly.
Review the Floor Plans
One of the advantages of buying a pre-construction condo is the opportunity to select from different floor plans. Carefully review the available options and consider your lifestyle, spatial needs, and preferences. Pay attention to the unit size, layout, number of bedrooms, and overall functionality. Visualize how the space will work for you and whether it aligns with your long-term goals.
Understand the Pricing Structure
Pricing for pre-construction condos in Toronto is typically based on a per-square-foot basis. Developers usually have a tiered pricing structure, with prices increasing as the building progresses. Understand the pricing structure and consider factors like floor level, unit size, and view when evaluating prices. It’s essential to have a clear understanding of the total purchase price, including any additional costs such as parking or locker fees.
Get Legal Advice
Hiring a real estate lawyer who specializes in pre-construction condos is vital. They will review the purchase agreement, look out for any red flags, and ensure your interests are protected. They can also guide you through the legal aspects of the purchase, such as deposit protection, warranties, and closing procedures. Make sure to choose a lawyer who is familiar with the intricacies of the pre-construction condo market in Toronto.
Understand the Deposit Structure
Pre-construction condos require a deposit structure different from traditional purchases. In Toronto, developers often require a deposit of around 15-25% of the purchase price, paid in installments over the construction period. Deposits for pre-construction condos are typically held in trust since the property remains under construction. This means that the deposits are protected if the builder goes bankrupt or fails to deliver the property as specified. Familiarize yourself with the deposit structure and its payment schedule. Ensure you have your finances in order to meet the deposit deadlines.
Stay Informed and Updated
Throughout the construction process, stay informed with regular updates from the developer. Developers typically provide progress reports and construction milestones. Attend any buyer meetings or open houses to get a first-hand look at the progress of the project. Staying updated will give you peace of mind and help you plan ahead for your eventual move-in.
Close the Deal
When the building is near completion, you’ll be asked to prepare for the closing process. This includes obtaining a mortgage pre-approval, securing home insurance, and coordinating with your lawyer to ensure all the necessary documents are in order. Your lawyer will guide you through the closing process, including the final payment and the transfer of ownership.
Prior to closing, the builder may carry out a walk-through with you to address any concerns and ensure that the unit is completed as specified. You should also request a warranty statement, which should outline warranties and after-sales support for the unit.
On the closing date, you will sign the final purchase documents and receive the title deed. This is when you’ll be required to pay the balance of the purchase price and any closing costs.
Buying a pre-construction condo in Toronto offers a unique opportunity to invest in a new property and experience the excitement of being part of a growing community. By thoroughly researching the market, understanding the pricing and deposit structure, and seeking legal advice, you can navigate the process with confidence. Stay informed throughout the construction process and be prepared for any delays. With careful planning and the right guidance, your pre-construction condo purchase in Toronto can be a rewarding and profitable experience.
Do you have any questions about buying a pre-construction condo in Toronto? Connect with BAZIS on social media (Facebook, X, or Instagram) and let us know!
Everything You Need to Know About Toronto’s 2024 Real Estate Market Forecast
As we head into 2024, things are looking bright for potential new home and condo purchasers in Toronto. While the Toronto real estate market has been facing some challenges, there is hope for a rebound in 2024.
According to reports from RE/MAX, there was a decrease in average sale prices and the number of sales in the Greater Toronto Area (GTA) between 2022 and 2023. The average sale price decreased by 5.9%, from $1,203,916 in 2022 to $1,132,681 in 2023, and the number of sales decreased by 13.5%, from 67,452 in 2022 to 58,367 in 2023.
In the GTA in 2023, the market was considered a seller’s market. However, there could be a shift toward a balanced or buyer’s market by the end 2024, depending on the neighbourhood in question. Average residential sale prices are predicted to drop by 3%, whereas the number of sales is expected to grow by 10.4%.
The top three areas to keep an eye on in the GTA are the Durham Region, Markham/Richmond Hill, and downtown Toronto. Durham Region is particularly attractive due to its affordability and value. Markham/Richmond Hill is gaining popularity due to improved affordability, and downtown Toronto remains desirable for its access to public transit and walkability, as well as its proximity to endless amenities and cultural attractions.
In terms of new construction trends, there is a focus on smaller condo units that offer desirable amenities like terraces, swimming pools, and fitness facilities.
According to the Toronto Regional Real Estate Board (TRREB), the condo market has become more balanced, with sales increasing but listings growing at a faster rate. This has led to a slight decrease in the average price, providing some relief amidst higher borrowing costs. The market conditions have provided more choice and negotiation power for first-time buyers, resulting in lower selling prices on average. While the market is expected to tighten in the second half of 2024, relief in borrowing costs (including interest rates) is anticipated in 2024 and 2025 due to population growth and market trends. This, coupled with a relatively resilient economy, should make home ownership affordable for more households this year and moving forward.
According to the Royal LePage Market Survey Forecast, the aggregate price of a home in Canada is projected to reach $843,684 in Q4 2024, with a 5.5% annual increase, while the median price of a condo will jump 5% to $616,140. The majority of price appreciation is expected in the second half of 2024, with modest quarterly increases in Q3 and Q4. The prediction is based on the assumption that the Bank of Canada has finished raising interest rates and will hold the key lending rate at its current 5% through the first half of the year. Modest interest rate cuts are expected to begin in the late summer or fall, potentially pushing home prices up.
Overall, this is good news for the Toronto real estate market. A rebound in home sales is anticipated, driven by lower borrowing costs and increased affordability. According to Phil Soper, the President and CEO of Royal LePage, with the right conditions, the market could return to mid-single-digit home price appreciation, which is a healthy long-term affordability level.
Despite the challenges posed by the current market conditions, according to a Leger survey commissioned by Re/Max, 73% of Canadians consider real estate a sound long-term investment. What do you think? Learn more about new condos and townhomes for sale in downtown Toronto by checking out BAZIS’ new communities.
Do you have questions about the Toronto real estate market? Connect with BAZIS on social media (Facebook, Twitter or Instagram) and let us know!
Are New Development Condos in Toronto a Better Investment Than Resale?
When it comes to investing in the real estate market in Toronto, prospective buyers often find themselves debating whether new development condos or resale condos are the smarter choice. While both options come with their own set of advantages and drawbacks, this blog will dive into why new development condos may offer a more rewarding investment opportunity compared to resale condos.
New Development Condos
Lowest Possible Price: One of the most appealing aspects of pre-construction condos is the ability to secure the best possible price. Builders and developers are looking to sell units to fund construction, so you get amazing value. Buyers also often have the opportunity to negotiate favourable deals directly with the developer, resulting in a lower purchase price compared to resale properties. Plus, you secure a price before the condo is built and ready to move in – by which time it has most likely appreciated in value quite considerably.
Flexibility in Down Payment: New development condos provide buyers with the advantage of spreading out the down payment over an extended period, usually across the first year. This longer timeframe to make your payment allows for better financial planning and flexibility.
Personalized Home: Unlike resale condos, new development condos in Toronto allow you to personalize your home from the very beginning. From choosing the layout to selecting the features, finishes, and other elements, you can tailor your condo to your exact preferences and requirements.
Top-Notch Amenities: New development condos often come with an array of luxurious amenities such as fitness centres, swimming pools, lounges, terraces, daycare facilities, and ground-level retail spaces. These amenities not only enhance your quality of life but also make the overall living experience more convenient and enjoyable. They also help to secure and increase your home’s resale value.
Better Investment Potential: As pre-construction condos are brand new and no one has lived in them, plus since they have top-notch features, finishes, and amenities, they have the best potential to appreciate in value over time. This aspect makes them an appealing choice for investors, as they stand a higher chance of gaining value when it comes time to sell.
Consideration of Long-Term Goals: Investing in a new development condo requires careful consideration of long-term goals. Because the wait times during the construction phase can be lengthy, you need to contemplate factors such as potential life changes, including marriage, starting a family, and needing more space, as well as whether you will still want to live in that area in the future.
Prime Location: Pre-construction condos in Toronto are usually located in popular neighbourhoods. These areas have everything you need: easy access to transportation, shops, entertainment, and all the modern conveniences. Living in these prime locations doesn’t just improve your quality of life, it also adds value and desirability to the property.
Smart Technology and Sustainability: Pre-construction condos often use smart technology and sustainable features that make life easier and more convenient but that also save you money on energy costs. Plus, they contribute to the overall long-term value of the property.
Resale Condos
Immediate Availability: A significant advantage of resale condos is their immediate availability. Buyers can occupy the property right away, making them a suitable choice for those who need a place to live or want to generate rental income immediately. Some new development condos may also be available for immediate move-in, however – depending on the stage of construction at which you make your purchase.
Potential Maintenance and Renovation Costs: Unlike pre-construction condos, resale properties may require costly repairs, renovations, or modernization. Buyers need to take into account the potential expenses associated with making the property suitable for their needs.
Bidding Wars: Due to the scarcity of available properties in Toronto, the resale condo market often fosters bidding wars. Buyers may find themselves competing with others and having to pay above the listed price to secure the desired property. With new development condos, there are no bidding wars and the prices advertised are guaranteed.
Potential for Limited Appreciation: Resale condos may not appreciate in value as much as newer or less-used units. Buyers often gravitate toward newer constructions, which can decrease demand for resale condos in the future.
In conclusion, while both new development and resale condos have their own merits, new development condos hold unique advantages. These include the potential to secure the best price, flexibility in down payment, the ability to personalize the home, prime locations, enticing amenities, and a higher likelihood of future appreciation. However, buyers must carefully consider their long-term goals and commitments before investing in pre-construction condos. While resale condos offer immediate availability, buyers need to factor in potential maintenance costs, bidding wars, and the potential for limited future appreciation. Ultimately, the choice between new development and resale condos rests on your individual preferences, investment goals, and financial capabilities.
Which do you think is the better investment option – new development or resale condos? Connect with BAZIS on social media (Facebook, Twitter or Instagram) and let us know!
How Does the Inclusionary Zoning Policy Affect You as a Buyer of a Pre-Construction Condo in Toronto?
As the demand for housing in Toronto continues to grow, the city has implemented various policies to address the issue of housing affordability. One such policy is the Inclusionary Zoning Policy. In this blog, we will explore how the Inclusionary Zoning Policy affects you, as a potential buyer of a pre-construction condo in Toronto.
What is the Inclusionary Zoning Policy?
The Inclusionary Zoning Policy, also known as IZ, is a proactive approach to combat the rising housing prices in Toronto and to promote housing affordability. According to recent statistics, only 2% of housing built or approved in Toronto in the last 5 years has been affordable. The City of Toronto states: “Our city is growing and we want to make sure new housing is affordable for those who call Toronto home.”
Through the Inclusionary Zoning Policy, the City hopes to:
– Increase the amount of affordable housing;
– Continue to encourage market housing development by supporting a diverse range of housing supply; and
– Create more inclusive, complete, and equitable communities.
How does the Inclusionary Zoning Policy work?
Under the Inclusionary Zoning Policy, developers in Toronto are required to set aside a percentage of units in their new residential developments for affordable housing. These units are usually priced below the market rate and are targeted toward individuals or families with lower to moderate incomes (households earning approximately $32,000 to $92,000 per year, depending on household size).
The Official Plan and Zoning By-law amendments for inclusionary zoning outline how this new affordable housing policy applies in Toronto, including:
– Requiring developments located in both a Protected Major Transit Station Area and an Inclusionary Market Area to provide affordable housing;
– Requiring 5-10% of condominium developments to be affordable housing;
– Increasing those requirements incrementally to 8-22% by 2030;
– Ensuring units stay affordable for at least 99 years; and
– Setting ownership prices based on new income-based definitions of affordable.
What does this mean for new homebuyers of pre-construction condos in Toronto?
The new Inclusionary Zoning Policy has many benefits for new homeowners, especially if you find yourself within the low-to-moderate income bracket. For lower income individuals or families, this means:
More Affordable Housing Opportunities: Lower to moderate-income families who have previously struggled to find suitable housing options can now purchase a home at a price that aligns with their budget, ensuring the long-term affordability of their home.
Reduced Financial Burden: With the cost of living in Toronto increasing, many individuals and families are struggling to make ends meet and are facing challenges when it comes to saving for a substantial down payment or qualifying for a mortgage. With the availability of affordable units in pre-construction condos at below-market prices, it becomes more feasible to secure financing and manage the ongoing costs associated with homeownership.
Stable and Secure Housing: For individuals and families who have experienced the instability of rental housing, the Inclusionary Zoning Policy provides a much-needed solution. By purchasing a pre-construction condo in an affordable housing development, families can gain stability and security in their housing situation, and can even secure an asset for future equity. This stability can foster a sense of belonging, improve overall well-being, and empower families to focus on other aspects of their lives, such as education and career growth.
Built-In Community Support: Pre-construction condos in Toronto often include community amenities designed to assist residents. These may include access to childcare, fitness centres, parks, and recreational spaces. By incorporating these amenities, the Inclusionary Zoning Policy creates a holistic environment that fosters community well-being and enhances the quality of life for all residents, regardless of income level.
The new Inclusionary Zoning Policy also has many benefits for ALL homeowners, regardless of income bracket. These include:
Social Inclusion and Diversity: The Inclusionary Zoning Policy promotes social inclusion and diversity within Toronto neighbourhoods. By deliberately creating mixed-income communities, people from different income brackets can interact, share experiences, and learn from one another. This diversity adds vibrancy and richness to the community, promoting understanding and breaking down social and economic barriers.
Sustainable Living: Many pre-construction condos encouraged by the Inclusionary Zoning Policy are designed with environmentally-friendly features and sustainable practices. By investing in these developments, homebuyers can contribute to a greener and more sustainable future, aligning their values with environmentally-conscious living.
Whether you are a lower-income family seeking affordable housing or an individual with a higher income considering ethically-conscious homeownership, the Inclusionary Zoning Policy opens doors for a wide range of buyers. By understanding the advantages offered by this policy, you can contribute to the growth, vibrancy, and inclusivity of Toronto’s housing market.
Do you have any questions about the Inclusionary Zoning Policy in Toronto? Connect with BAZIS on social media (Facebook, Twitter or Instagram) and let us know!