Tips for investing in pre-construction
Thinking about investing in pre-construction real estate for the first time? Congratulations – investing in pre-construction real estate has historically excellent yields!
However, there is important information to educate yourself on before jumping in. Read on to stay informed with some tips for investing in pre-construction real estate.
Know the local housing market you are focusing on
One of the most important things to do is to know the local housing market; a solid knowledge base can ensure you’re getting good value for your investment. Many times, investors purchases are based solely on emotion or trends and worse yet the “FOMO” factor – “Fear of Missing Out”. Before making the investment jump, a prime strategy is to work with a realtor who is immersed in the local housing market. They can easily flag worthy investments and advise you on which ones may be more profitable.
Choose a growing community
Where you choose to invest is perhaps just as important as the specific property that you choose to invest in, especially when it comes to pre-construction. Selecting a community that has already flourished may result in limited potential for future appreciation. It’s important to select an area that is vibrant and developing. Checking out predicted population projections and the provincial guidelines on “Places to Grow” is an easy way to stay informed and know what to expect from the community that your investment property is located in. For example, the Greater Toronto Area is expected to be the fastest growing region in the province over the next few years, increasing in size a whopping 36.7 per cent by 2046. However, this does not apply equally to every community in the GTA. Educating yourself on what specific areas to focus on will maximize value for your investment dollar.
Inspect materials and features
Staying informed and engaged throughout the process is important. Reviewing the materials and features to be used is key to determining not only if it’s going to be a quality build but if they are using the most updated and current products and practices. You should research the builder and developer of the project, examine their past projects for any issues or lengthy delays which could make you think twice before deciding if investing with them is worthwhile.
With excellent reputations for the quality of their builds and their commitment to using the latest and most durable materials while still blending in with their surroundings, Torlon Realty works with some of the finest builders in the GTA.
You can never ask too many questions! Asking questions can help the sales team to find what’s important to you, clarifying concerns you may have, while also giving information you may not have thought to ask about before purchasing. No one likes surprises, and as the builder’s representatives, Torlon Realty’s sales personnel are knowledgeable about every aspect of the project and can help you to understand exactly what you’re buying before you buy.
Consider the nearby amenities
Location – Location – Location.
Study the community that you’re thinking about investing in. Would it appeal to future tenants/buyers? Does it have good schools? Is it safe? Does it have access to green space, transportation, health care, and a variety of restaurant and grocery options? Although certain amenities may come later, it’s always a good idea to see if the community you’re purchasing a property in today would appeal to people considering moving to the area.
Work with us
At Torlon Realty Corporation Brokerage, we have experts that focus on pre-construction. Our two founders, Frank Longo and John Torchia have combined more than 60 years of experience practicing both commercial and residential sales. They’ve worked for Canada’s largest franchises, independent brokerages, and developers. We have the experience, expertise, resources, and network to help find the perfect pre-construction investment for you.
Contact us today
No matter where you are looking invest, or whom you are looking to invest with, we will endeavour to answer any questions you may have about investing in pre-construction. Give us a call at 416-613-1010, or send us an email at firstname.lastname@example.org.