Buying a New Condo: The Pros and Cons

You can buy a new condo from the developer before or during its construction and also before the condo corporation is formed. A developer may have some unsold units available after the condominium has been completed and registered.

In some markets, the developer may wait to sell a large percentage of the units before registering the condo corporation or even starting construction.

Usually, a deposit is required to secure or reserve, a condo unit in a new development.

Buying a new condo. The Good Side:

• New home warranty protection. (Up to five years)
• You have more choice of locations within the building; floor level, different views, etc.
• Customized design (in some cases); more options and upgrades to choose from.
• Newer buildings have less risk of having to undergo costly repairs and renovations.
• The purchase price could be lower than resale market condos. Especially in pre-sale phase of the construction.

Buying a new condo. The Bad Side:

• If the constructions have not started, you cannot physically see what you are buying and have to rely on floor plans and sketches that are subject to change.
• Your initial deposit will be locked up for the duration of construction.
• Some banks may refuse to give you a mortgage if the condo corporation has not been registered.
• The construction of the units may not be completed by the expected date. And the delivery date can be a lot later than originally agreed.
• It’s possible that you may move into your unit while construction continues in others.
• Last but not least; More taxes. New constructions have to pay GST and QST. (Not the same as the Land Transfer Tax) But, the good news is: you might be eligible for a housing rebate.

So there you have it. The choice is yours.

Still want to buy a new condo? Send us an email. Perhaps we can help you.

Need more info before buying? Subscribe to the Montreal Real Estate Blog

How to repossess your income property

You found an income property you like.

The place is perfect for you; great location, in fantastic condition. It’s fully rented with good paying tenants in long term leases. The revenues are good enough to cover all the expenses; including your own part of the mortgage….Because, after all, you are buying the place to move in. Right?

Living rent free, what a dream!

But wait a minute. Isn’t the building fully rented?

“Yes, but as the new owner, I can take back one of the units whenever I decide to” - You might be thinking.

Well, it doesn’t really work that way. You see, according to the Régie du logement:

“All tenants have the right to remain in the rental unit indefinitely as long as they respect the terms of the lease…”

How can you repossess one of the units, if there’s no problem with the terms?
Do you have to wait until someone decides to leave in order to move in?

Fortunately, the law also mentions…

“(However) the landlord may terminate the lease under certain circumstances.”

Now, that’s interesting >>

Are you financially ready to buy?

So, you’ve finally decided that homeownership is right for you. Now you need to determine if you are financially ready to buy a house. Check out these formulas to calculate the size of your loan and evaluate your current financial situation.

Knowing your net worth is important because you will need this information when you discuss a mortgage with your lender.
Your net worth is the amount left over once you’ve subtracted your total liabilities from your total assets. It will also give you a snapshot of your current financial situation and show you how much you can afford to put as a down payment. Read more