What Are The Top 10 Factors To Consider When Deciding To Purchase A Pre-Construction Property?

1. Location: Consider The Location Of The Pre-Construction Property And Its Proximity To Essential Amenities And Services, Such As Schools, Grocery Stores, Public Transportation, And More.
2. Developer Reputation: Research The Reputation And Track Record Of The Developer, Including Their History Of Completing Projects On Time And Within Budget.
3. Unit Layout And Amenities: Consider The Size And Layout Of The Unit And The Building’s Amenities And Services, Such As The Gym, Rooftop Terrace, And More.
4. Total Cost: Calculate The Total Cost Of The Property, Including The Purchase Price, Deposit Requirements, And Any Additional Fees Or Levies.
5. Occupancy Date: Verify The Estimated Occupancy Date And Be Aware Of Any Potential Delays Or Changes To The Schedule.
6. Financing Options: Research The Available Financing Options For Pre-Construction Purchases, Including The Ability To Secure A Mortgage Pre-Approval.
7. Resale Potential: Consider The Resale Potential Of The Property, Including The Desirability Of The Location And The Unit Layout.
8. Assignment Clause: Understand The Assignment Clause In The Purchase Agreement, Including The Process For Selling The Property Before Completion And Occupancy.
9. Maintenance Fees: What Are The Maintenance Fees Of The Building And Understand What Services They Cover.
10. Contractual Obligations: Carefully Review The Purchase Agreement And Understand All Of The Contractual Obligations, Including Deposit Requirements And Closing Costs.

What Is An Assignment Sale?

A Pre-Construction Assignment Sale Refers To The Transfer Of A Buyer’s Rights And Obligations Under A Pre-Construction Purchase Agreement To A Third Party Before The Completion And Occupancy Of The Building. This Allows The Original Buyer To Sell Their Interest In The Property To Another Party, Often At A Higher Price, Before The Building Is Finished. This Can Be A Lucrative Option For Those Looking To Invest In The Real Estate Market.

What Are Development Levies?

Pre-Construction Development Levies Refer To Fees Or Charges Imposed By A Developer On A Pre-Construction Property Purchase, Which Can Be Capped As An Incentive At A Specific Amount. These Levies Are Used To Cover Various Costs Associated With The Development And Construction Of The Property, Such As Infrastructure And Amenity Expenses. The Purpose Of Capping These Levies Is To Limit The Total Amount That A Buyer Must Pay And Provide Some Level Of Certainty And Predictability In The Pre-Construction Purchasing Process.

What Does The Right To lease During Occupancy Mean?

The Right To Lease During Occupancy In Pre-Construction Condos Refers To The Ability Of The Buyer To Rent Out Their Unit While The Building Is Under Construction And Before They Have Taken Occupancy. This Right Can Be Granted By The Developer And Is Included In The Purchase Agreement. The Purpose Of This Right Is To Allow Buyers To Generate Income From Their Investment Before They Have Moved In. However, It Is Important To Note That There May Be Restrictions Or Limitations On The Right To Lease, Such As Minimum Lease Periods, Restrictions On Subleasing, And Other Conditions Set By The Developer.