If you are planning to invest in a pre construction condo, it is the right decision both for occupancy and as an investment plan. But buying a condo without considering specific facts, can backfire, it can be a liability. Purchasing pre construction condos can be an exciting prospect if you have selected the right developer and location. Here are some fact checks before you invest in a condo.
Invest in the builder, not in the land
Investing in under-construction real estate projects becomes more viable and profitable when undertaken by a reliable, efficient and experienced builder. Choose a developer with an impeccable track record of building sound apartments within the deadline without too much delay. Past projects by the builder show his efficiency and expertise in construction, check those to have a comprehensive idea about his proficiency and professionalism. It is imperative to remember when you are investing in pre construction housing; you agree to buy the floor plan, without any brick and mortar.
Use the ten days
The Ontario law ensures a ten-day cooling off period when you purchase a condo from a developer. The ten days calendar period is look back time to decide you want to continue with the agreement or not. If you’re going to void the deed, no penalty, no interest is levied on the purchaser. The Canadian real estate is booming, and builders take advantage of the situation by increasing the apartment price and altering the incentives as they open public sales. During the ten-day cooling period, the builder cannot change the price, terms and conditions, or sell to the third party.
Interim occupancy
Interim occupancy is the period between the day of occupancy and day of absolute ownership. As soon as the building gets clearance as habitable, safe by building authority of the jurisdiction, interim occupancy starts. This period usually lasts for three to six months. Though the building is under construction, the apartment is declared habitable by the authorized department; the homeowner needs to pay interim occupancy fees, even if they do not dwell in it.
Interim occupancy fees are not included in the condo’s final price but treated as rent as you are not yet the legitimate owner of the apartment. The legal ownership bestows on you when you register the deed in the assigned land registry office. At this point, interim occupancy and fees cease. As you become the legitimate owner, you can sell, rent the apartment and can secure a mortgage if you desire.
