PART TWO: 10 Mistakes to Avoid When Buying Pre-Construction Condos

May 10th, 2023

After years of being in the real estate industry, Costas Kivelos, founder of First Access Condos, outlines ten common mistakes to avoid when buying pre-construction condos.

In Part One of this blog series, the first five out of ten common mistakes to avoid when purchasing pre-construction condos were reviewed. Now, in part two, the focus will shift to the remaining top five mistakes. By understanding and avoiding these pitfalls, investors can make informed decisions that maximize their investment potential in the dynamic world of pre-construction condos. Stay tuned to gain valuable insights and guidance that will help navigate the intricacies of this market with confidence and success.

5. Avoid Timing The Market 

Avoid trying to time the real estate market when considering purchasing pre-construction condos. It is impossible to accurately predict market fluctuations, even for experts. Instead, focusing on the long-term value is more reliable. Buying a property today is likely to appreciate in value over the next five years due to the imbalance of supply and demand. The construction industry is already operating at maximum capacity, and there is a shortage of skilled labor and companies to meet the housing demand. Additionally, factors like high immigration rates and increased foreign student enrollment contribute to a lack of supply, indicating that prices will continue to rise.

4. Avoid Inaccurate Budgeting 

It is crucial for investors to provide an accurate maximum budget when considering the purchase of pre-construction condos. A worksheet is a document that outlines your project criteria and purchasing preferences. It is used to find a suitable unit for you. Failing to accurately explain your needs and limitations can result in missing out on desirable units when they become available. The market may be slower in recent months, but it is picking up. By not providing an accurate budget, you risk losing out on good deals to other buyers who have higher budgets.

“Avoid missing out on the best time to buy by being clear and accurate about your budget.”

3. Don’t Miss Out on Front-of-the-Line Access

Avoid the common mistake of not understanding what a preliminary worksheet is when considering buying pre-construction condos. The preliminary worksheet is essential as it grants you front-of-the-line access to the most sought-after projects in the city and secures a unit for you to purchase. It is filled out based on insider information provided in advance, allowing you to secure a better position in selecting a unit. Even without exact pricing and floor plans, accurate estimates can be provided based on historical pricing data and knowledge of similar projects. By completing the preliminary worksheet in a timely manner and providing accurate information, you increase your chances of getting the unit you desire.

“The preliminary worksheet is the Holy Grail of pre-construction.”

2. Don’t Wait for Launch Day

Avoid the common mistake of waiting for the launch day before submitting a worksheet when considering buying pre-construction condos. By now, it should be clear that submitting preliminary worksheets well in advance is crucial. If others have already submitted their worksheets up to a month before the launch, coming in on the day of the launch puts you at a disadvantage.

“The goal is to fulfill everyone’s unit preferences, but if there is a lineup of people who acted earlier, you may miss out on the first round of unit selections.”

To increase your chances, it is important to be proactive and submit your worksheet early.

1. Don’t Wait for The Perfect Floor Plan

The most common mistake when buying a pre-construction condo is waiting for the perfect floor plan. The truth is that the perfect floor plan simply does not exist. Instead, focus on securing a unit in the first round, as that’s when you can get the best price. Whether it’s the sixth or seventh unit or the 34th or 40th floor, it shouldn’t matter. The important thing is to seize the opportunity in the initial round and not get fixated on specific details. Remember, the purpose is investment, not personal residence.

In conclusion, waiting on buying pre-construction condos and making the common mistakes outlined above can hinder investors from maximizing their investment potential in the real estate market. By reviewing these 10 mistakes to avoid when buying pre-construction condos, investors can make informed decisions and seize the current opportunities available. It is crucial to prioritize the big picture, remain proactive, and embrace the investment potential rather than getting caught up in personal preferences or market timing.

View the hottest pre-construction listings that just launched and register to get first access to coming soon condos across the Greater Toronto Area.

Watch Costas share more insights about all the reasons to invest in pre-constructions.

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