Pre-construction is a popular option for home buyers seeking new and customized homes in Guelph, Ontario. When considering purchasing pre-construction, buyers should research the developer’s reputation, the location, and the unit’s layout and size. It is important to have a lawyer review the contract, including the final price, deadlines, and potential hidden fees. Buyers should also consider their financing options and take into account unexpected delays or changes in the market. Pre-construction can be a great opportunity for homebuyers to tailor a new home to their preferences, but careful consideration and planning are essential.
Why Guelph’s Stable Market is Great News for Investors
Purchasing pre-contruction is also a great opportunity for investors and something I have encouraged with my clients (depending on the product (many times). Buying in the first phase of construction or in the first launch gives you an opportunity to purchase at potentially a lower cost. Depending on the real estate market at the time your investment could increase by hundreds of thousands of dollars by the time you close. Which just means more equity in your pocket! And when you can turn around and sell it OR use the equity to leverage more properties for your pro-folio. With Guelph’s stable environment this has served both my clients and myself well over the past decade.
Why buy in Guelph? Here are just a few great reasons:
- What Does Guelph Have that Toronto Doesn’t?
- The Pitfalls and Payoffs of Real Estate Investing in Guelph
What Is the Difference Between Resale and Pre-Construction?
Pre-construction and resale properties differ significantly in terms of the buying process. Pre-construction refers to properties that are yet to be built, while resale properties are previously owned. On the one hand, pre-construction allows buyers to customize the properties according to their preferences, though they may have longer wait times before move-in. When thinking about purchasing a new home, buyers are “at the mercy” of the construction process and their timelines. These timelines can vary from a few months to a few years. The longer the potential closing date is, the more flexibility we would suggest having when planning to move in.
On the other hand, resale properties offer buyers the opportunity to inspect the homes before purchasing and may come with established communities and neighbourhoods. These homes can be ready for occupation immediately and buyers can choose and negotiate on the closing date that works for both parties. In addition to considering these factors, buyers may also want to consider the paperwork involved, because there is a big difference with the documents associated with a pre-construction and resale.
With a pre-construction purchase, most builder agreements are substantially long (50-100 pages) and cover much more information in the build and construction process. Because what a buyer is purchasing is not yet built, every detail of the property must be written out and signed off on by both the buyers and the builder. It is strongly advised to have a lawyer review these new construction agreements as it is a lot of material to cover and directly affects the property being bought. With a resale, the standard OREA resale agreement can be as little as 6 pages long.
Plan for a Successful Purchase
Secrets to a successful pre-construction purchase are to plan well in advance, be prepared for delays, and work with a real estate agent with pre-construction experience. It’s important that buyers take their time during the due diligence period to ask as many questions as possible. The conditional period for a pre-construction purchase is usually 10 days to review everything and decide if it is the right decision for the buyers. It is important to make the most of this time to ensure the buyers signing the agreement understand every detail and part of the process. There is a lot of material to review and understand, and discussing them with a realtor, lawyer and the builder is very important to ensure there are minimal surprises when the keys are made available for move-in.
One of the most exciting and crucial steps in the pre-construction homeownership process. Buyer’s need to consider their personal style, budget, and functionality. Key areas to focus on include flooring, cabinets, countertops, and bathroom tiles. While trends and fads may change, quality finishes and neutral colours will always add value to the home. It’s critical to look for reputable vendors and materials that meet the preferences of the buyer while still meeting the builders standards. With some careful planning and attention to detail, the perfect home can be created and tailored to a specific lifestyle. Ultimately, the choice between pre-construction and resale depends on buyers’ individual needs and preferences.
Are you ready to explore the many options for pre-construction in Guelph? Reach out today at nick@cbn.on.ca or call directly at 519-830-4823 for more information.
