By: Ana Bastas
5 Tips for Investing in Pre-Construction
Tags: Pre-construction, Real Estate Investing, Real Estate, Realtor, Real Estate Agent
It’s no secret that I’m obsessed with investing in pre-construction, after all my business @5iveStarCapital is centered around it. So I wanted to share some knowledge on how to get started in this high-return investment industry. Here are some introductory tips:
Before you even start looking into pre-construction properties, you must speak to your mortgage lender (unless you have the cash on hand for the total amount of the purchase). Speaking to your lender first will avoid future disappointment if you fall in love with a property and find out you can’t afford it.
- Visit your bank or mortgage broker.
Reach out to your Realtor (me, right?) and set up a meeting to discuss up and coming areas and where they’re seeing the highest return on investment (ROI). We’re the experts in the field, and we keep on top of trends in the industry. We also have the experience to connect you with reputable builders. We’ve all heard the horror stories of pre-con investing, let us show you the many success stories.
- Choose an area
The pre-construction ROI is largely impacted by when you purchase a unit. The best time to purchase is on the first launch, as after that you see the builder start to manipulate the pricing (increasing). The great thing about that is that if you get in on the first launch, you will likely see the ROI right away. Sometimes by tens of thousands of dollars within a few weeks! The key to getting in early is to have that deposit cheque in hand and your worksheets filled out (will explain in next tip) so you’re first in line
- Have your deposit ready
Just as important as having the money in hand, you need to submit your worksheets ASAP. A worksheet is basically a request for a specific unit, or type of unit. Many will require some personal information such as a copy of your driver’s licence, SIN number etc. Don’t be scared, it’s mainly so we can show the builder that you’re a serious buyer, and to ensure we get you the unit that you want (within reason). Plus, with any pre-construction investment there is a 10 day cooling off period. This is where you can get your lawyer to review the documents and decide if you actually want to go through with the purchase.
- Get your worksheet submitted
The hard part is over, now it’s time for the fun. Typically, if you are lucky enough to get in on the first launch, you can start to see the ROI within a few months, or even weeks. There’s a reason why this type of investment is so lucrative and addictive!
- Sit back and watch your investment grow!
Now that you’ve got the basic knowledge for investing in pre-construction, it’s time to give me a call, or email. I’m happy to go over things in more detail with you over a coffee, or a video meeting. This way we can narrow down the areas you’re interested in, and we can inform you of new project launches! Feel free to contact me at 905-808-2957, or by email at: Sales@AnaBastas.com
Looking forward to chatting with you!