• Fri. Dec 9th, 2022

4 Mistakes Pre-Construction Condo Investors Make

Byadmin

Nov 4, 2022
4 Mistakes Pre-Construction Condo Investors Make

When investing in a new preconstruction in Mississauga, it is important to do your due diligence. You should talk to a real estate attorney and ensure that you’re comfortable with the details of your new home before committing to any transaction. Avoid these common mistakes to ensure your investment’s success.

Pre-construction condo investors should do their due diligence:

Before buying a pre-construction condo, you should do your due diligence to ensure it is a good investment. This includes considering the rental potential of the neighborhood. After all, if you have a property that sits empty, you are losing money. You can also do market research to find out how much rent a unit can fetch per square foot. Also, calculate the cap rate of the property. You’ll be stuck with tight numbers even after you get possession if these numbers need to be corrected.

Find out about any special provisions that might allow short-term rentals:

You should also find any special provisions that allow short-term rentals. Some developers include grandfather clauses allowing owners to rent the unit for short periods. These laws vary by province, but it’s worth checking with a real estate lawyer.

Understand all the nuances of the contract:

When investing in a pre-construction condominium, it is important to understand all the nuances of the contract. These contracts are different from those for resale properties or commercial properties. You need an expert to guide you through the process. If you’re planning to buy a pre-construction condominium, you should always consult with a real estate lawyer.

While the contract for a pre-construction condo will be familiar to a real estate lawyer, having a lawyer look over it is still a good idea. A lawyer can make sure there are no hidden clauses in the document. They can also review the purchase agreement to ensure that you are legally entitled to the property.

Understand the costs associated with closing:

It’s also important to understand the costs associated with closing. These costs will vary from one building to the next. Ontario has no standardized closing cost because each builder and building will have slightly different contracts. If you want to invest in condos, you should avoid making these mistakes.