Scarborough is one of the largest areas in Toronto, Ontario, that is home to diverse, multicultural people and beautiful scenery, including huge cliffs, beaches, hiking trails, and parks. The population of Scarborough is roughly 600,000, and it is a hot destination for new people looking to work, study, and live in Canada.
Scarborough real estate investing is known for its value. It’s no secret that Scarborough is one of the most affordable neighborhoods in Canada. With the new generation laying its roots in this friendly area, the demand for quality Scarborough new homes is heightening. Investing in Scarborough condos is proving to be quite profitable for many, with neighborhoods like Malvern boasting some of the highest condo appreciation rates in 2020.
Pre-construction condos in Scarborough are an excellent opportunity for personal purchase or investing. These are units in a condominium building that have not yet been built. That means you will strike up an agreement with a builder or developer agency before they start building the house. You will be with them every step of the way, meaning you get to give your condo a personal touch on the architecture and amenities of your condo unit.
Many find that the payments required for pre-construction condos are quite manageable and have to opportunity to have an excellent return over the lang term.
A significant benefit to buying real estate in Canada is the unique tax benefits available to investors in areas like Scarborough or Vaughan. Upon reselling your pre-construction condo after a few years, only 50% of your capital gains will be taxed. This increases the profit margin of your condo.
If you purchase your pre-construction condo as an investment, there are tax advantages in Canada that include deducted costs on mortgage interest, property taxes, and unit depreciation.When selling your pre-construction condo in Scarborough, you can claim the wear and tear of your property to defer some taxes. You can also use excess losses to reduce your taxes from other areas. This increases the potential amount of profit you can receive from your real estate investment.
The payment structure of a new construction condo can work in the favour of most people. The deposit structure for most Scarborough new homes is as follows:
You will also need to factor in closing costs too.
Some of these closing costs include;
A new home needs a warranty too. Just because it is new does not mean mishaps and accidents won’t happen. In Canadian cities such as Scarborough, Toronto, and Etobicoke, builders are required to offer home warranty coverage for new construction homes. It is mandatory under the New Home Buyer Protection Act.
It’s also important to note that many builders offer warranties for amenities such as windows, doors, electrical appliances, and finishing. Your builder may also contract a third-party company to take care of all warranties apart from home warranties. A pre-construction real estate agent can help you to bargain for extended warranties with your developer. Unfortunately, most inexperienced new homeowners may miss out on warranty discounts without the help of an agent.
This is a good question for both Investors and End Users.
First, let’s talk about Lockers. Due to the space constraints of modern condos, a locker can be an excellent storage solution. Our experience tells us that in most cases, a storage locker is a benefit and will add to the value of your investment. With the prices of a locker being reasonable, we believe that purchasing a locker is money well spent.
Parking is another matter. Today we are seeing prices for a single parking space exceeding $100,000 in many projects. You must make a more serious decision when it comes to purchasing Parking. If your condo purchase is for yourself and a car is very important to your lifestyle, then a purchase is a good decision. If you are an investor, looking to rent out a 1 bedroom property in an area with an excellent walk score, maybe this is not an expense needed. In the long term, we see that a parking investment will trend to higher prices eventually and may help with the resale value of your condo.
In pre-construction, Interim Occupancy occurs when your unit is ready and the building is able to be moved into. While the property is considered liveable, you cannot be granted Title until the property is registered. You can live in your unit but not legally be the owner yet. Instead of paying your mortgage, condos fees and property taxes, you will pay the builder an Interim Occupancy Fee. Once the building is registered, the next step is the final closing, where you will be required to pay final few such as land taxes, title insurance and any remaining down payments.
TFN Realty: Each office independently owned and operated. We do not represent the builder. All renderings are artist concept. Floor plans, incentives, pricing are subject to terms & conditions and may change at any time without notice – see sales representatives for more details. E&OE