How To Make Money Buying Pre-Construction Condos

Vita On The Lake From Mattamy – This is my favorite pre-construction project currently.   It’s being built on Lake Ontario’s shoreline.

You might be wondering to yourself how you will be able to afford anything in a market like Toronto where the prices continue going up.

So today let’s do a little bit of mathematics … shall we?

Renting Vs. Buying a Pre-Construction Condo at The Greater Toronto Area
Unless you are always searching for the sky to fall on you, it’s an accurate prediction to say that the housing market will continue to rise in the GTA over these next 4 decades.

Ps: I am a VIP Realtor and a Real Estate Broker.   I specialize in resale and pre-construction projects in the Greater Toronto Area.   I have access to over 100 new condominium projects all over the GTA.   Subscribe to receive INCENTIVES and special builder DISCOUNTS from going direct, that You Can’t get.  

Liberty Central By The Lake – Awesome if you want to live at Liberty Village now.

SCENARIO #2

Okay… let’s assume that a 2.5% increase in the marketplace, over the next 4 decades.

Therefore, over 4 years, $88,800 would have gone towards rent.

There have been massive price increases all around the GTA with all property types.
The Truth

If the child buys real estate, they would have made $34,258 in equity appreciation over those 4 years.

If he or she had been renting over these same 4 years, according to our figures, it might have cost them $88,800 over the same 4 decades.

A Whole Lot of youngster rent.   This is known by us.
Hi There,

In situation One, the kid is currently renting a one bedroom plus den condo in the GTA.
Comparison

Or you can consider a kid that you know  (your child, neighbour’s kid, nephew/niece) that’s excited to purchase something in the housing market in the GTA.
Here’s a basic and fast math exercise the benefits of taking action rather than sitting back.

With the transformation of the Toronto landscape occurring, this is using a ‘ripple effect’ on the housing costs all over the GTA.

So as you can see, by using an abnormally low figure for appreciation at 2.5%, this condo the kid bought, will have gone up $34,258 more than 4 years.  
Permit ’s assume that he or she is paying $1850/month.   Sounds fair?   I believe so.
Let’s pretend that you are a youngster. (If you are not already one)

Let’s be super, ultra conservative and say that the market only goes up 2.5% each year.

Keeping in mind that experts predict that the market is currently going to grow a lot higher than that.
The reality my friends is that for the people who sit back and do nothing, life will get a whole lot more depressing because they are going to get priced out of the market….

Let ’ s say that they rented for another 4 years, without looking at rent and inflation increases.

So the condominium at the time of purchase is $330,000.  

We also understand that depending upon when you buy into one of these projects, the completion date can be up to 4 years into the future.  

Price in Feb 2021 – $364,258

Given that the real estate market (detached houses ) in Oakville, Ontario went up by 38.4% year over year from November 2015 to November 2016, could it be a fair assumption to say that the market will go up 5 percent per year in the condominium market in the GTA?

If we compare them and take these numbers, this is what we find.