Nick Kyriacopoulos founded a group holding and finance company in 2012 with the vision of building townhouses in underserved markets. Since that time he has developed over 400 homes and units in Ontario, including a wide range of projects including custom-made and pre-constructed condos, townhomes, commercial and industrial property.
As a result, he has the experience and expertise to provide a full overview of the Toronto pre-construction homes market. Let’s start with the pros and cons:
Pros For Buying A Pre-Construction House
If you buy early in the pre-construction process you might be able to purchase your home with a smaller down payment. You can also buy at today’s prices and enjoy the higher future value.
Many new homes tend to be built in underdeveloped suburbs, helping you to avoid high costs and the bidding wars you might see in Toronto’s more expensive urban areas. Finally, newly built homes often offer more living space and feature better insulation to save on energy costs.
Buying during pre-construction also opens up more customization options. These can potentially improve your home’s value and also differentiate it from your neighbors’ homes before you move in, avoiding the inconvenience of renovating while you are living there.
New houses and condos are also usually equipped with the latest tech such as alarm systems, smart speaker and heating systems, fiber internet connections, and more, saving you the time, money, and hassle of arranging this yourself.
Additionally, your brand new systems and appliances will need less maintenance and repair, and will often be covered by warranties as part of the agreement.
Cons of Buying A Pre-Construction House
First, brand new homes can cost more than existing homes in the same area. While convenient, the optional upgrade features in new homes are marked up to ensure they are profitable for the builder, potentially costing you more than expected.
Additionally, new housing developments are often located at a distance from important destinations such as schools and commercial zones. If you are going to be one of the first to move into a new development, then on top of being surrounded by construction sites, there may be limited public transportation available until the development is more complete.
When the time comes to sell your home, newer houses might not be as appealing to buyers who want to fix up an old home to their exact preferences. Another consideration is that newer homes, although often larger in size, are often on smaller lots, giving you less yard space and potentially less privacy from the neighbors.
While buying a house during the pre-construction phase for a project might be an ideal choice for many people, especially first-time buyers, it is important to remember that you are buying into the location and neighborhood as well as the home itself.
Getting started in the Toronto housing market can be intimidating because of the competition, but according to Nicholas Kyriacopoulos in Toronto, pre-constructions can provide a more affordable entry point for both first-time buyers, people moving to the area from a less expensive housing market, and also for investors looking to start their journey of making a profit from the Toronto housing market.