For many people who are considering investing in a property, buying a pre-construction condo is a good way to maximize the return on investment. If you decide to start investing early, such as purchasing pre-construction condos in Montreal’s Mile-Ex, you will have a better chance of getting the best units available. You can choose your preferred floor or the condo with the best view and layout.
Another advantage of making an early investment is that you can be offered a better price along with certain incentives. So, should you decide to invest in a pre-construction condo.
Below are some factors and advice you might want to consider.
- First and foremost, you need to find a good realtor who specializes in pre-construction. Your realtor should be able to assist you in setting up appointments and meeting up with builders and developers and also help you in looking for the best project to invest in.
- The location is an important factor in choosing a property to invest in. It should be in close proximity to public transit, so that whoever will live there will not have any difficulty in getting around. The location should also have signs of growth potential in terms of social diversity, arts and culture, as well as commercial and industrial spaces. If you are planning to rent out your condo, you should also know the rental rates in the area as well as other condominiums that can be your competition. You need to know how much cash flow will come in to offset your projected expenses as well.
- In any investment, the brand is an important factor. You need to carefully consider the quality and reputation of the builder. It is easy to build a good reputation on paper, but the actual and final projects are more important. Know the past projects of the developer to see their experience, accountability, as well as community development. Make sure that their past projects do not lack quality and design as these are red flags in an investment. Keep in mind that when investing in pre-construction condos, it is very important that you trust the developer, especially since you cannot see the actual unit yet.
- The size of your investment is another important factor. Most investors get one bedroom units with dens because these properties offer great value. Tenants can also occupy this kind of layout as an almost two bedroom unit. However, the problem with one bedroom and den units is that they are very common in the marketplace. This means that the supply is abundant, but the demand is scarce. Buck the trend and deviate from the norm. Take advantage by getting a two bedroom unit which can offer greater returns, especially if you are planning to rent it out in long terms. With a two bedroom unit, there are a few supplies, but there is a higher demand. Also, keep your amenities simple because the more complex the amenities are, the higher the condo fees will be.
- It is also critical to monitor the economy and consumer demand in the area. It may be hard to predict, but you should be able to find ways on how you can always be informed and to protect yourself as well as your investment from various risks that may come up.
Many say that pre-construction is a good way to get more bang for your buck. Still, keep in mind that the success of investing in pre-construction condominiums may also depend on your decision making as well as choosing the right property at the outset. Make sure that you do your own research and do not just rely on the information that will be given to you by your realtor.