As markets across Canada begin to cool from last year’s highs, the world of pre-construction faces its share of changes too. Although interest rates are on the rise, there is still a lot of potential in the pre-construction condo industry for those who know where to look! So with that in mind, read on for an optimist’s perspective on the current pre-construction condo industry and learn more about why pre-construction condos are still a fantastic investment.
Affordability
Although average prices of a house in Toronto have cooled from their peak of $1.37M in March 2022 to $1.15M in July 2022, as per the CREA, house ownership is still out of reach for many. Luckily, condos and especially pre-construction condos offer more affordable alternatives for housing options. Plus, they allow you to live in or closer to bigger cities and central business districts that would otherwise be unaffordable.
Rentability
Toronto continues to see a steady stream of demand for rentals. With predictions of a population increase over the next few years, there will be no shortage of tenants looking to rent when a building is complete! So buying a pre-construction condo is a sound investment in the long term.
Current Interest Rates Do Not Necessarily Affect Pre-construction Condos
Pre-construction condos are a solid investment for the future. Qualifying for existing interest rates to purchase does not mean you will have to pay that same rate 4 or 5 years later. As the traditional saying goes, “what goes up must come down.” Furthermore, unlike purchasing resale, where the 15-20% deposit is required immediately, developers provide a variety of deposit payment plans, allowing you to save for the necessary amount over an extended time, giving you a larger down payment at the time of closing.
Appeal For Condo-living Lifestyle Remains The Same
Condo living offers so many benefits! Not only can it be more affordable than buying a house and allow you to live closer to the city, but you’ll also get a variety of amenities that would be unaffordable in a home. For example, most condo buildings have state-of-the-art gyms, dog washing stations, underground parking, rooftop terraces, children’s play area and more. Plus, living in a condo means much less maintenance, as all the common spaces and outdoor areas are taken care of as part of your monthly condo fees. Lastly, if you live alone, work long hours, or love to travel, living in a condo is often safer and more secure, giving you peace of mind!
As you can see, there are several great reasons to be optimistic about the current state of the pre-construction condo industry! So if you’re looking for a solid investment and a fantastic place to call home, visit gemterra.com today and browse for the condo of your dreams.