Q1: What is an off-plan?
The uncompleted plan is also called the building number. It was created by Hong Kong tycoon Fok Yingdong. It is an investment tool in the real estate market. At this time, the housing price is the cheapest, and it is also the best investment opportunity for real estate speculators.
Real estate development projects are sold in the form of uncompleted projects, which is very beneficial to developers. First, collect the money and wait 3-5 years before handing over the property, which fully protects the cash flow of the developer. For the buyers of uncompleted projects, there is a certain investment risk. , Including whether the cash flow is sufficient, whether the bank loan can be approved, the level of interest, and the integrity of the developer.
Q2: Why buy uncompleted projects?
1. The possibility of appreciation is high.
It usually takes 3-5 years for an uncompleted apartment to be handed over. Investors only need to pay the 15%-20% of the uncompleted price as a deposit when buying the uncompleted apartment. After the uncompleted apartment is handed over, they can choose to live in, rent or sell. In other words, investors only need to invest relatively little money and wait for the property to appreciate. In addition to self-occupation, investors can choose to sell the uncompleted homes to realize the appreciation in value, or they can choose to entrust them to professional real estate brokers for renting, and receive considerable monthly rental cash flow income.
2. It is easier to manage.
After the condominiums are collected, there is usually a special property management company to manage them. The owner only needs to pay a monthly management fee. There is no need to do work such as cutting grass and shoveling snow. The 24-hour security guards the personal and property of the apartment occupants. Safety. For most owners, the management of the entire building does not require them to bother.
3. Easy to rent.
Most of the APARTMENT apartments currently rented in Toronto are very old, many are more than 20-30 years old, and the rent is not cheap, and the maintenance is very poor. However, the CONDO apartments are relatively new on the whole, well maintained, and equipped with complete supporting facilities such as gymnasiums and swimming pools. Although the rent will be higher than that of the APARTMENT apartments, they are recognized and accepted by more and more tenants.
4. Liquidity and affordability.
Because CONDO apartments are generally built in convenient transportation and densely populated places, they can fully meet the needs of residents for work, study, leisure and shopping, such as DOWNTOWN, North York YONGE Street Corridor and Mississauga’s Square One, so CONDO The demand for uncompleted apartments is very large, and there are many potential buyers, so the liquidity is also very strong, which can ensure that they can be sold at a satisfactory price in a short time in the second-hand market. In addition, the price of CONDO apartment is generally much cheaper than other residential units in the same area, and ordinary families can generally afford it, especially for young people who have just worked recently, a monthly loan of 500,000 to 600,000 units The burden is not large, not much higher than the rent. But for buyers, the property rights of CONDO apartment are their own, so they not only enjoy the luxurious supporting facilities and various conveniences of the apartment, but also enjoy the value-added of CONDO itself. Generally, there are units of various sizes in an apartment building, from a studio of about 300,000 to 400,000 to a three-bedroom unit of 700 to 800,000, and even a Penthouse of millions, which can meet the purchase or investment needs of different groups of people.
5. CONDO apartment facilities are relatively advanced.
Condo ownerEnjoyquality of lifeIt can be higher than the owners of other residential units, because the CONDO apartments on the market are becoming more and more luxurious. Generally, the CONDO apartments have an indoor swimming pool, a gym, a movie hall, a yoga room, a sauna room, a multimedia room, a party room and Guest rooms, etc., the owner can enjoy without leaving home, these advantages are unmatched by other residential units.
6. Adopt the latest energy saving and environmental protection standards and open design.
The newly-built CONDO apartments generally adopt the latest LEED (leadership in energy and environmental design) energy-saving and environmental protection standards. This kind of building will save a lot of electricity and gas compared with ordinary buildings, and in terms of apartment design, generally open Style kitchen, so the use of space is more efficient. Residents will not feel depressed even if they live in relatively small units in CONDO apartments.
Q3: New off-the-plan properties are constantly pouring into the market. How to choose a real estate that suits you?
Please be sure to choose the real estate according to your own situation, you can focus on the following aspects:
1) Is it planned to invest or live in? Because most off-plan apartments are delivered in 4-5 years of investment purchase, you must consider whether the location of the real estate can meet your future life plan. For self-occupied buyers, is this location closer to my workplace? Is life convenient? Will family members change in the next few years?
2) Does the real estate price meet your budget? Can it guarantee a relatively loose cash flow?(For example, the developer will require buyers to make a pre-approval loan agreement to ensure that the uncompleted apartment can be handed over on time, and the developer will require a deposit of 15-20% in batches according to the Deposit structure.)Does the delivery time of the real estate match your future financial situation and life plan?
2) What is the goodwill of the developer? Please fully understand the developer's background and reputation before buying.
3) Floor selection, interior design, fitness and entertainment center and surrounding supporting facilities, materials and electrical appliances, etc. You can learn more about whether there are some service facilities you want in the real estate, such as swimming pools, gyms, etc., and even whether there are any special regulations for pets in CONDO.
Q4: What is the difference between buying an uncompleted apartment directly at the sales center and looking for a broker?
According to the practice of the Canadian real estate market, developers and builders will provide the first-hand promotion plan including the price of off-the-plan units and real estate information, such as floor plans, to the TOP SALES real estate that maintains a close cooperative relationship with them before each new building is launched on the market. Broker (also known as "Franchise Partner" or "Platinum VIP Broker").
You should find a TOP SALES real estate agent, so that you can not only get a good price in terms of price, but also give priority to choosing the apartment type you like. And these professional TOP SALES real estate brokers can also provide you with professional advice for your reference, including various precautions in signing the contract, so as to protect your consumer rights to the greatest extent.
On the contrary, the sales staff in the sales center focuses on promoting the real estate of a single developer and serving a single developer. They cannot, like TOP SALES real estate agents, provide you with objective comparisons and professional opinions on different real estates.
Q5: What should I pay attention to when signing a contract?
1. Is the development fee capped?
2. Is HST included in the quotation?
3. Are you registered in the Tarion warranty plan?
4. Can uncompleted purchases be transferred for free? If it is not free, what is the transfer fee?
5. You have a cooling-off period of 10 days.
6. Let a professional lawyer help you review the house purchase contract.
7. Can the house be rented out after the house is acquired?
Q6: How much do I need to pay for the pre-completed deposit?
There are also many types of uncompleted projects in Toronto, from high-rise apartments to detached houses. Of course, the most discussed off-plan for us Chinese should be the off-plan of high-rise apartments. The deposit for an uncompleted apartment is generally 10-20% of the house price.
Generally speaking, if it is an off-plan house of a detached house, the developer will control the delivery within one year. The construction time for a wooden-framed house here is relatively short, and the deposit will be about 10%. In general, there are not many off-plan houses for independent houses, and the deposit ratio is still very reasonable. If the market is on the rise, it is a very good choice.
If it is a townhouse, the construction period will be longer than that of a single house, and the deposit ratio will be slightly higher, about 15-20%. It is also required to pay the deposit in installments, which may be 5%, 10%, 5%, and generally require payment in about 1 year.
If it is an apartment building, most developers currently require a deposit of 15-20%. The delivery time for apartment buildings is generally about 4 years. The deposit is also required to be paid in installments, and the amount of 15% will be paid within 1-2 years. , Every time it is about 5%. The annual payment is about 5%-10%, which is easier for buyers, and there is no need to pay the entire deposit in the first time. This is also one of the reasons why many investors or self-occupiers like to buy off-the-plan properties. You can choose a house in advance, determine the price, and pay the deposit slowly in installments while you wait. The financial pressure will be much less.
Q7: How to find the latest real estate listings and information?
You can follow our off-plan information network www.canadabestcondo.com, Here is the latest and most comprehensive information about off-plan properties in the Greater Toronto Area.
In addition, other channels include online inquiries, recommendations between relatives and friends, newspapers and real estate magazines. However, the most direct and effective way is to find a TOP SALES real estate agent who is familiar with off-plan information. Because these real estate agents maintain a close cooperative relationship with the developers, whenever the developers are ready to introduce a new property to the market, they will provide these TOP SALES real estate agents with a detailed promotion plan at the first time, including exclusive VIP customers Concessions, uncompleted unit prices, real estate information, house plans, etc.
Q8: How long does it normally take from buying an uncompleted apartment to handing over the property?
Generally, it takes about 4 years from the opening of the apartment to the completion. Because in Canada, the developer will not start construction until the first year after selling off the pre-completed 70%–80%. The reason is that the bank needs the developer to sell the 70-80% off-the-plan unit before giving the developer a loan for construction funds, plus the construction period It is about 2-3 years, so a 4-year cycle is more common.
Q9: Can I check out and refund the deposit after I bought an uncompleted apartment?
There is a 10-day cooling-off period after the contract is signed for the purchase of uncompleted flats. During this period, you can unsubscribe without any reason, and the deposit will be refunded in the same way. However, once the period expires, unsubscription will be regarded as a breach of contract. Need to bear corresponding responsibilities.
Q10: Can the purchased uncompleted property be resold before delivery?
The transfer conditions of uncompleted flats usually have corresponding provisions in the contract signed with the developer, called "Limited Right Of Assignment". The corresponding regulations of different developers or real estates are different, and they can usually be transferred once. Usually, the condition of allowing the transfer is that the 15% of the house payment or the entire deposit has been paid.
Q11: Can overseas persons/non-Canadian residents buy uncompleted units?
Overseas persons/non-Canadian residents can purchase off-the-plan properties in their own name. Buyers need to provide personal information including name, address, email address, phone number, date of birth, ID and passport copy, etc. The deposit is required to pay a total of 35% before handing over the house. . Please note that overseas companies cannot purchase off-plan properties in Canada.
Q12: What do the two Closing dates of an off-plan property mean?
There are usually two Closing dates for buying off-plans, one is Occupancy Closing and the other is Final Closing. When Occupancy Closing, the owner can get the key to move in, but has not obtained the property right, so cannot sell the house, but must pay the Occupancy Fee, including management fee, land tax and loan interest. Property rights can be obtained during Final Closing. It usually takes about six months from Occupancy Closing to Final Closing, because the property rights can only be processed when the building reaches 70%.
Q13: How long is it legal to delay the delivery date?
The delivery date of the uncompleted apartment is flexible. Usually the developer has four dates in the contract. The first is the Earliest Date and the fourth is the Latest Date. There are two dates in between. The Earliest Date and Earliest Date During the latest date, the developer will send a letter to the owner to notify the change of the delivery date, within this range, the delivery is legal, up to 5 years. If the actual delivery date has passed the Latest Date, the buyer can request to check out and refund all deposit and interest. Therefore, buyers should try their best to buy real estate projects from reputable developers. Generally, there will be no delay in the delivery date of these developers. Therefore, it is especially important to find a real estate agent who understands off-the-plan properties and developers.