Can a Presale Condo be a Good Investment?

Purchasing a presale condo can potentially be a good investment, but it also carries some risks that should be carefully considered.

One potential benefit of investing in a presale condo is that you may be able to purchase the unit at a lower price than it will be when it is completed and ready for occupancy. This can potentially give you a good return on your investment if the value of the condo increases over time.

However, there are also risks associated with investing in a presale condo. For example, the construction of the building could be delayed, which could impact the value of the unit when it is eventually completed. Additionally, there is a risk that the completed building may not meet your expectations or that the neighbourhood may not develop as planned.

It is important to do your due diligence and carefully research the developer and the location before investing in a presale condo. This can include looking at the developer’s track record and the location’s potential for growth. You should also carefully review the terms of the purchase agreement and any contingencies in place to protect your investment.

Overall, investing in a presale condo can be a good opportunity, but it is important to consider all potential risks and benefits before deciding.

7-day period on a presale condo

It is common for real estate contracts to include a provision for a “cooling off” or “contingency” period, during which the buyer has the opportunity to review documents and conduct inspections before committing to the purchase. The length of this period can vary, but a 7-day waiting period is not uncommon.

During this period, the buyer may review the contract and any related documents, such as the condominium’s bylaws and rules, and may also hire a professional inspector to assess the condition of the unit and any common areas. The buyer may also negotiate with the seller to make any necessary repairs or address any other concerns.

If the buyer decides to move forward with the purchase, they can waive the contingency period and proceed with the sale. If the buyer decides not to proceed, they can typically cancel the contract and receive a refund of any deposit they have made.

It’s important to carefully review the terms of the contract and seek legal advice if you have any questions or concerns.