Investing in pre-construction condos in Toronto.

Pre-construction condos are one of the more talked-about ways to invest in Toronto real estate, and one of the more complicated. A bad pre-construction purchase can take years to unwind — and while it's tied up, you lose the chance to act on other opportunities.

Invest in a builder, not just a building

It can be tempting to buy the first pre-construction unit that catches your eye. It's usually a better move to invest in a reputable builder first. A track record of delivering on time, with the quality promised, matters more than any single floor plan — a builder with a history of delays or disputes can tie up your money for years beyond the original closing date.

The cooling-off period

Ontario gives pre-construction buyers a 10-day "cooling off" period after signing to change their mind. Use it: have a lawyer closely review the agreement of purchase and sale, and make sure your financing is actually in place, among other things, before that window closes.

Interim occupancy and closing

Pre-construction has two closings, not one. Interim occupancy — living in or paying occupancy fees on a unit before the building's final registration — can run for months, during which you may not be able to rent the unit out. If you're not paying attention to these dates, you can end up carrying a unit you can't yet generate income from, which directly affects your return.

Closing costs, development fees, and levies

Some pre-construction units are priced the way they are because of the closing costs attached to them — development charges and levies can add up well beyond what a resale closing looks like. Budget for these explicitly rather than assuming a pre-construction closing behaves like a resale one.

Work with someone who's done this before

With 15 years in the Toronto market, Pierre Carapetian has guided investor clients through pre-construction purchases across the city, from choosing a builder to navigating occupancy and closing. Get in touch to talk through a specific opportunity, or browse current listings to see what's available now.