As the economy is reviving after a slowdown due to Covid-19, price of real estate in Canada is reviving. Many are considering investing in pre construction residential units. But it can be challenging to pick a viable, profitable project to put your money. Price of pre construction projects are continually wavering due to demand-supply mechanism. The real estate market is finding a base price after wild fluctuations. According to the last census conducted by Statistics Canada, 1.9million condominiums are owned by Canadian citizens in 2016. According to the national survey, the prevailing rate was $1,000 per sq. ft. in central Toronto and $1,345 sq. ft. in downtown Vancouver in 2018.
Property value appreciated considerably in Canada, which encouraged many new construction projects;60, 000 property transferred was recorded in 2017-208.4,031 new projects were initiated by developers in February 2019. Pre-construction condo markets are booming, and many retail investors are allocating funds, hoping for future appreciation. But you must consider many factors before investing in pre construction projects.
Investment in real estate has inheriting risk, especially in pre construction projects. Henceforth finding a reputable, experienced and knowledgeable builder is crucial. Try to know the gestation period of the project, and if delayed for how long. Look into the previous projects of the builder, and estimate the maintenance cost of the ongoing project. Many investors made an agreement with the builder, but for some reasons, the project was delayed or cancelled.
A reputable builder is a crucial factor in a pre condo, but the most significant feature of a real estate project is location. Toronto and Vancouver constitute 54% of the entire condo market of Canada. These two metros are the largest housing market in the country. Price of condos on other Canadian cities does not command a premium price as that of these two cities. With the growing economy and urbanization, many new condo projects are coming up in smaller towns. With condos, new house and townships are coming up, as land is not scarce as in major cities.
A business strategy is imperative for investment success. Buying pre construction condos in Toronto is an excellent business strategy, which has enormous potential to grow. Chalk out a pragmatic real estate investment plan considering the price of the condo, location, and reliability, the concerned developer’s experience. Invest when all these criteria are fulfilled, till then, cash is the king. A long term goal is another important factor when you are considering investing in ore construction condos.