Scarborough is a district in Toronto. It boasts a rich cultural mosaic and stunning natural landscapes including the Scarborough Bluffs and Rouge National Urban Park. Its real estate market offers diverse options for you from affordable condos to family-friendly homes
Are you interested in owning one of the brand-new homes in Scarborough? Pre-construction properties offer a unique opportunity to buyers. But they come with their own set of potential upsides and drawbacks too. Let’s take a closer look at the key pros and cons of investing in pre construction homes in Scarborough.
The Pros of Buying Pre-Construction
Buying pre-construction in Scarborough comes with several benefits. You can often secure a lower price compared to completed homes. There’s also the chance to customize your unit with preferred finishes and layouts. New buildings often include modern amenities and energy-efficient features. They enhance your living experience.
Lower Purchase Price
One of the biggest lures of pre-con? The ability to secure pricing below what that same home would cost once built. Developers tend to offer attractive initial pricing and incentives to generate early interest and sales momentum. You’re getting in at the lowest possible entry point.
Customization Opportunities
Unlike a resale home, pre-construction provides an opportunity that allows buyers to customize finishes, fixtures, layouts and more to their personal tastes. Many builders give pre-con purchasers the option to select flooring, cabinetry, counters, etc. essentially tailoring their new home. However, this is not possible in all condominiums. You should learn about this when requesting floor plans and VIP details of particular condo developments in Scarborough.
Moving into a Brand New Home
There’s something to be said for being the first resident of a freshly built, never-lived-in property. No need to deal with the wear-and-tear, outdated elements or unknowns that come with resales. Your pre-construction home will be move-in ready with all the latest features, untouched by previous owners.
Value Appreciation During Construction
Time is on your side with pre-con investments. As construction progresses over months/years, the home’s value steadily appreciates before you ever take possession. Many buyers see substantial gains in their home’s worth between purchase and closing.
The Cons of Pre-Con Homes
Pre-construction homes in Scarborough have their downsides too. There can be delays in construction and you may see a pushback in your move-in date. You might also face unexpected costs during the building process. Furthermore, buying something that doesn’t yet exist means there’s always a risk that the final product won’t meet your expectations.
The Wait is Long
Patience is definitely required when venturing into pre-construction. The timeline from signing a pre-con contract to finally getting keys and closing can range from 2-4 years in many cases. You’ll be committing to mortgage payments well before taking occupancy. But remember, you’re not the only one doing so.
Potential for Delays and Missed Deadlines
Construction delays, permit issues, material shortages – a host of factors outside the buyer’s control could unexpectedly come. They push back your purchase’s closing date. It’s important to learn about the history of the developers and know whether their previous projects were completed on time. And pre-construction contracts rarely offer compensation for such delays. Be prepared for changing timelines.
No Model Home to Realistically Preview
That dazzling showroom model home and renderings are great. They still offer an incomplete picture of what your pre-con home will truly look and feel like when built. You don’t need to be discouraged by this because most models today are precisely what they will look after completion. You will get a true, tangible sense of the space after construction.
Temporary Nuisance of Active Construction
Vibrations, noise, dirt, traffic and general chaos – living near or next to active construction zones is unavoidable with pre-construction. Disruptions and inconveniences will persist for some time until the job sites fully wrap up. Not ideal if you desire immediate tranquility in your new neighborhood.
Risk Factor
Investments have some sort of risks always entailed. More uncertainty generally equates to more risk. Builders could declare bankruptcy. Condo corporation issues could arise. Taxes and construction costs could escalate dramatically over long build cycles. It’s not a straightforward deal like a resale property but it’s still worth the investment. You know it depends on your preference, requirements and budget.
Key Advantages for Scarborough Pre-Con Buyers
Are the upsides worth the potential drawbacks when investing in pre construction homes in Scarborough? For many buyers, absolutely. Consider factors like:
- Scarborough represents relative affordability within the Toronto housing market. Pre-con provides an accessible entry point for first-timers and those on tight budgets.
- Scarborough is a rapid growth area with rising home values projected for years to come. That pre-construction investment has significant appreciation potential over the build timeline.
- Plentiful new low-rise and condo developments are planned for Scarborough’s central neighborhoods like Agincourt and beyond. Great selection for pre-con buyers.
- Vibrant amenity-filled master-planned communities are materializing around Scarborough’s transit hubs. An ideal spot to establish yourself in a pre-construction home.
Do Your Due Diligence
While the advantages are enticing, it’s critical to enter into any Scarborough pre-construction investment with eyes wide open to the risks and lengthy process involved. Thoroughly vet the builder’s track record and negotiate contractual terms that protect your interests. Understand your cancellation rights in case circumstances change. And prepare financially for the wait until closing day finally arrives.
Pre construction homes in Scarborough represent an exciting opportunity to get in on the ground level of fresh modern living spaces. They are great for buyers with the right expectations and level of commitment. But it’s not a decision to take lightly – carefully weigh both the pros and cons before signing on the dotted line.
