Why PreCon as an investment vehicle?
ROI and limited housing inventory for the foreseeable future are two reasons that come to mind. With immigration predicted to welcome 1M new residents, and development assumption less than half, the demand will continue by both investor and family oriented end users for quite sometime.
…an apartment like building or a series of homes where the individual unit is owned by the person living in (or tenanted) but there are shared areas owned by everyone together.
An assignment is essentially a sale of a contract or right to acquire property. An assignment is a transaction whereby the original purchaser (the “Assignor”) of a property sells, and thereby transfers, their interest and obligations under the original contract to a new purchaser (the “Assignee”). The Assignee will generally assume all of the Assignor’s duties and obligations under the original Agreement of Purchase and Sale. These rights and obligations are stated in the original Agreement of Purchase and Sale and include terms such as interest payments, taxes and maintenance fees during interim occupancy. Upon completion, the Assignee is granted the title to the real property and will incur all final closing costs.
a) Assignor: An Assignor is the original buyer of the unit from the Builder/Developer.
b) Assignee: An Assignee is the buyer of the Agreement of Purchase and Sale from the Assignor. ~ TRREB
Each project will have it’s own structure for deposit from the initial money due at time of agreement followed by a series of increased amounts at specified timelines as the project progresses. Below is an example from one of the projects below, but only as an example. If interested in a specific project, I can go over these details in person.
Normally it is a 20% deposit made in the following manner:
+$10,000 on signing
+Balance to 5% in 30 days
+5% in 120 days
+5% in 270 days
+5% in 450 days
…basically it’s an opportunity to buy a unit before ground is even broken, either as an end-user or an investment strategy which could offer your best savings and/or your best returns.
The Occupancy Period for pre-constrcution condos is really broken down into two specific times, but without definite dates. 1) When you’re able to move in, but yet DO NOT own the unit, is called Interim Occupancy, and
2) Final Closing is considered when the transfer of title takes place and your fees paid during the interim living will now go towards your mortgage.
Yes, I’m glad you picked up on that. Interim occupancy is when the unit is considered ready to be lived in, which the developer will be expecting you to start paying a fee based on the interest portion on the balance of your purchase price, the estimated monthly taxes, and the estimated monthly maintenance fees.
PLEASE, consult with your lawyer before you enter into any agreement.
I’ll have more on this in my Blog/FAQ’s later. In the meantime, let’s talk!
Platinum or VIP Access comes by way of strong relationships between developer and real estate brokerages/agents. This is a huge benefit to you provided you are lucky enough to have someone with this privilege type access AND you do since you at some point decided to #CallToddSmith.
Such Incentives could be access to additional floor plans; Free assignment sales; Cash Back programs; Special upgrade options are all but a few examples. Each project will differ but through me as your Platinum Agent, you’ll have access to what the Developers offers.