Purchasing a condo unit at the time of its preconstruction might look like a straightforward approach. Unaware buyers can become prey to developers who sell units in the initial stages while they are in possession stage of 51 percent or more of the condo project. To prevent yourself from becoming a victim, it is important to know a few things when buying a pre-construction condo.
Decline in the value of units
A condominium that is unable to allure new buyers can experience a fast decline in the price of its units. When developers realize that it is no longer in demand for these units, they may rent out the unsold units. This ultimately brings down the entire unit value.
Condominium maintenance fees
One more thing to keep in mind is the fees related to maintenance of condominium. This fee is assured only for the first operational year, from the time unit owners take complete control of the building. GTA pre-construction condos VIP agents and developers mostly compute their initial budget to make condo units a lot more appealing to the buyers.
Assistance of lawyer helps
Buyers are advised to seek assistance of a knowledgeable lawyer and add their own conditions into buying contracts. By mentioning the timing of completion of the project, buyers can get their deposits back.
Till that time, the unit buyer needs to pay occupancy fees to developers. This fee amount is equal to the maintenance fees and the advance monthly mortgage payment. Such type of arrangement safeguards the values of the sold units.
When purchasing during preconstruction you must check the track record and reputation of the builder and developer. Considering the above factors would also ensure intelligent investment on a condo.