Buying Pre-Construction for investment, how to utilize your primary residence
Purchasing a pre- construction property is an excellent investment – and one that doesn’t have to break the bank. You can utilize the equity in your primary residence to buy an investment property, especially in today’s hot market.
How to utilize your primary residence
How can you go about utilizing your primary residence to purchase a pre-investment property? It’s simple, take this example. If you purchased a home five years ago in the Greater Toronto Area, it might have cost you $550,000. The house has appreciated significantly over the years, and after getting an appraisal from the bank – with the current hot housing market – it’s now worth $1.2 million dollars.
How is the additional equity helpful?
That gives you an extra $550,000 of equity that you have the potential to have access to! You can then go to the bank and ask them to re-mortgage your house. If you loan 70 per cent of the value of your home, you have access to $840,000. Depending on how much mortgage you already have will depend on how much money you can use.
Now, you have the ability to purchase an investment property
Investing in pre-construction is an excellent option because you don’t have to take out a mortgage until after the property has been developed! With the value of property continuously appreciating in the Greater Toronto Area specifically, it’s an excellent investment opportunity that is sure to be quite profitable in a few years. According to the government of Ontario’s population projections, the Greater Toronto Area specifically is supposed to experience the largest amount of growth. It is expected to increase by 2.9 million by 2046, which will only make the housing market more competitive, and therefore, more expensive. And, more profitable for you if you’ve invested in a pre-construction opportunity.
Get started today
At Torlon Realty Corporation Brokerage Inc., we have a number of pre-construction opportunities available in this competitive market! This includes Ravines on Main – The Village In The City,
Ultra Towns – with three inventory units available now that are move in ready. Each unit features over $40,000 in upgrades. We also have our Central opportunity, with one single detached unit remaining. It features a spacious 2800 square feet living space, elevators for convenience and 10” ceilings.
Work with experts
We have experienced leaders that focus on pre-construction- builder direct representation, development land management, investment property management, retail MLS, exclusive and corporate resale and loss mitigation.
Back in 2017 we were founded by Frank Longo and John Torchia, who each have over 30 years practicing in both commercial and residential sales.
We would love to work with you on this exciting journey towards purchasing a pre-construction property for investment. If you have any questions or would simply like to know more, you can reach us by phone at 416-613-1010, or by email at firstname.lastname@example.org.