5 Common Myths About Buying A Pre-Construction Condo

Purchasing Mississauga new condos can be a great investment. This type of property is cheaper than a freehold home and only requires a 20 percent deposit. However, many people need clarification about the buying process. These misconceptions can make the buying process seem daunting. This article will dispel these myths and help you make a sound decision when buying a pre-construction condo.

Pre-construction condos are a good investment:

If you are interested in purchasing a new condo, you should consider pre-construction condos. These are typically priced at 20% of the total purchase price and can offer excellent appreciation for three to five years. Plus, there is no need to worry about mortgage payments, tenants, or maintenance costs. You can also save for the down payment while the condo is still under construction.

They require a 20 percent deposit:

Purchasing a pre-construction condo requires a deposit equal to 20% of the total cost of the condo. The amount of the deposit is typically paid in installments over a year. This method of payment offers buyers more time to save. In most cases, the remaining balance is paid in five percent increments at intervals of thirty, sixty, ninety, and 120-270 days.

They are more affordable than a freehold home:

There are two main reasons why buying a pre-construction condo is a good investment. First, it is more affordable than a freehold home. Second, it has low maintenance costs. A pre-construction condo will typically have a lower maintenance cost than a freehold home because of how the building is constructed.

They are a hands-on process:

Many potential buyers avoid pre-construction condos because they fear the hassles of managing a property while it is being built. But there are some advantages to pre-construction condos. Unlike resale properties, pre-construction condos can be completed without interruption, and there is usually only one round of upgrades.

You will have to wait until the development is finished before you can move in:

A common misconception about pre-construction condos is that you will have to wait until the development is finished before you can move in. While this may be true in some cases, in most cases, you will only have to pay a mortgage once the development is complete. Moreover, the development won’t show up on your credit report, which means that it won’t impact your debt ratio or ability to borrow money in the future.

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