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Why do people purchase pre-construction? That's a lot of money to put down on a plan and a promise that it will be built in a few years.
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Homebuyers thinking of purchasing a new or pre-construction condo are often confused about the HST rebate. Questions like, "Who pays HST on new homes?" are often top of mind. And for good reason. The HST rebate can mean upwards of a $30,000 difference to your bottom line.
The biggest lessons I've learned about investing have come from the biggest mistakes I've made. I bought a pre-construction condo unit in a popular Toronto neighbourhood. I forked over a 20 per cent deposit to make the purchase. That was four years ago, the property still hasn't been built so I can't sell it or rent it out.
Let's take a look at the subject of floor plans. After all, the easiest way to ensure you make a good investment when buying a condo is to ensure you've chosen a great floor plan. Insiders know that being amongst the first to purchase a unit in a pre-construction development isn't so much about the lower prices, as it is about getting first pick of the best layouts. But what exactly should one be looking for when choosing a floor plan?
Until a few years ago, pre-construction condos offered buyers a true deal compared to resale properties. You would have likely paid $400 per square foot for pre-construction while prices at the two-ye...