How can you buy pre-construction condos in Toronto?

Buying Pre-Construction Condos in Toronto

How To Buy Pre-Construction Condos In Toronto – Today’s pre-construction market is not the same as it was five years ago. This was when almost any investment was a sure win. To make informed decisions about your options, you will need to be educated on the reputation of developers and do a thorough analysis of projected values.

Pre-construction buying can be complicated. I have been in the market for more than 13 years and have represented hundreds upon hundreds of buyers. I understand how daunting this process can be.

This guide is my attempt to help you understand the buying process. I will also explain what you can expect from working with me and my team, as well as how we choose good projects for clients.

Benefits of Buying A Pre-Construction Condo In Toronto

  • Extended Deposit Programs are available for many new projects
  • A VIP/Prestige Broker can help you get in the door first and make money within the first few weeks of the sales process
  • Buy at today’s prices by purchasing strategically and doing the right analysis
  • Clear and well-defined steps are required to buy a home.
  • Your investment will appreciate
  • Condos that are newly built tend to rent for less and sell faster than those that are older.
  • A mortgage is not necessary right away.
  • You have the option of renting or selling your property.
  • The Benefits of Working with a Pre Construction Broker
  • Let’s get the facts straight about VIP and Prestige Brokers.
  • A pre-construction buyer should work with a broker who is familiar with the market.

This applies to any investor, but it is especially important for first-time buyers. It is important to have someone who represents your best interests.

TRB has strong partnerships with many of our representing sales teams and has established relationships with some of the city’s most influential developers. This status allows us to be designated VIP or Prestige.

Working with a broker that is truly VIP is one of the greatest advantages. They get first access to suites once they are released. Their client can purchase at the lowest launch price, which allows them to make the most of their money.

Did you know that the developer covers all fees associated with your condo purchase before construction? A professional is available at no additional cost (only $0.00).

A financial expert broker can help you avoid being caught in a bad deal with bad developments. A pre-construction broker who is experienced will be familiar with assignment clauses, deposit structures and levy caps. These are all important elements that go beyond just signing the contract.

How Pre-Construction Condos Are Sold

The process of selling condos is the same for most developers in the area. To ensure smooth and easy selling of condos, they partner with experienced brokers who have worked with them.

As a Prestige Broker and VIP with some of the top developers in Toronto, I have refined our process to ensure that our clients get the best price, access, and understanding when buying pre-construction in Toronto.

This eBook is a compilation of everything I know, and everything my clients want. It will help you understand the process of buying condos in Toronto that are pre-construction.

This guide is packed with helpful tips and deposit structure examples. It also covers what to do after you have purchased your property and how to get it back to you. This guide will be helpful to anyone, whether you are just beginning to learn about pre-construction.

Click the button below to download. If you have any questions, would like to schedule a time for chat, or would like to discuss any one of our top preconstruction condo projects please get in touch immediately.

The Need of Real Estate lawyer as a buyer and seller

Ever wonder why your favorite movie stars look so beautiful? You might also wonder why the coffee shop you frequent is always clean and well-decorated for each season. They have a team that is meticulously focused on every detail.

Think about the many professionals who are there to help you find your dream home. You have more than your Real Estate Agent. There are many people who can help you find the right home for you, including a Real Estate lawyer.

Role of a real estate lawyer as a buyer

    • Check out the Agreement of Purchase as well as all other legal documents
    • Verify that there aren’t any claims against the property
    • Arrange for Title Insurance
  • Check that you have a valid title at closing
  • Make sure your property taxes are current
  • Calculate the land tax due at closing
  • Prepare the mortgage documents
  • Close the transaction and make sure all financial and legal conditions are met
  • With the seller’s lawyer, exchange legal documents and keys

Role of a real-estate lawyer as a seller

  • Before you sign, make sure to read the Agreement of Sale.
  • Assist with negotiation of terms and conditions
  • Prepare the deed for your house
  • As soon as title problems arise, deal with them and resolve them
  • Close the transaction
  • Make sure all legal and financial requirements are met
  • With the buyer’s lawyer, exchange legal documents and keys

You now have a better idea of what a Real Estate Lawyer does. It’s time for you to find the one who will represent you during the entire transaction. Your RE/MAX Agent will be able to help you choose a Real Estate lawyer. They often work with trusted professionals. For more information, you can visit our Finding a Real Estate Lawyer post.

Real estate investors in Ontario: strategies to avoid capital gains tax

How to reduce taxes on the sale of Canadian real estate

In this article, we’ll cover everything you need to know about reducing taxes on the sale of real estate in Canada.

1. Capital gains treatment. 

First, you can reduce taxes by calling the capital gain from the sale of Canadian real property a capital gain. Capital gains mean that only half the profits from your Canadian real-estate sale will be taxable to you. 

Let’s say that a real property sale profit is $100,000. This means that only $50,000, or half of the gain, would be taxable at your marginal tax rate. This formula calculates the profit from real estate sales in Canada. Net sales minus cost equals profit or loss. The selling price is the net sales proceeds, while the cost is the original purchase. The original purchase price must be included on the purchase and sales agreement when you purchased the property. The property’s cost can include closing costs and land transfer tax legal fees for tax purposes. To arrive at net sales proceeds, you can also deduct commissions and selling costs.

2. Maximize capital improvements

Maximize capital expenditures in order to maximize capital improvements and lower property sale taxes. Also known as improvements, capital expenditures are also called capital expenditures. A lower price will result in a lower profit when you sell your property.

Let’s say you decide to replace all your windows. Window replacements can be expected to last between 10-20 years. This will increase the property’s tax-free life expectancy. These windows can be considered capital improvements and added to your property’s cost. Because repairs are not considered improvements, they won’t increase your property’s value for tax purposes.

Repairs are deductable as a current expense in your Canadian tax return. Repairs include painting, fixing leaky faucets, shampooing carpets and fixing holes.

3. Do not claim capital cost allowance.

You must consider depreciation and capital cost allowance when selling a Canadian property. Tax-deductible depreciation is the cost of physical wear and tear on your property. When you sell depreciable assets, such as Canadian real property, the capital cost allowance that you claimed in previous taxation years must be included within your taxable income for the year of sale. This is called recapture.

Let’s take, for example, $100,000 in capital cost allowance that you have claimed to date. This means that $100,000 of capital cost allowance you have previously claimed will be added to your taxable income for the year of sale. You will not be able to claim the capital cost allowance if you don’t. You should calculate the capital gain from your real estate sales. Maximize capital improvements and include capital cost allowance.

We are working real estate lawyers specialize in helping people with a variety of options when it comes to protecting their investments from capital gains tax. So let us show you our experts expertise by taking a look at your situation and advising on strategies that work for your needs.

Schedule your free consultation now!

Why Real Estate Syndication is a great option for Investors

A lot of people think that they need years before being able to move onto their next investment property but this couldn’t be further from reality! One great option for gaining financial momentum is through what’s called “real estate syndication.” Using property syndication method will allow investors like yourself leads them quickly towards becoming financially stable while still having control over all aspects including planning, acquiring property, satisfying registration and disclosure rules, and marketing allowing even greater return on cost than if purchased individually at market rates because fellow entrepreneurs may have lower overhead costs due simply by working together rather then Each person doing things separately.

If you’re eager to learn more about real estate syndication and how it can help your finances in the fastest way possible, keep reading.

Owning a piece of property can be a great way to invest your money and see some serious returns, but it can also be expensive and little bit risky.

The risks associated with real estate investment are well known – you could lose your investment if the property value goes down, or if you’re unable to find a tenant or make mortgage payments.

Real estate syndication is one way to help mitigate these risks. By pooling resources together, you can spread the risk among more people, and reduce the impact that any one individual’s misfortune might have on the group as whole. And if everyone in the syndicate does well, everyone profits!

Real estate syndication is a great way to get into the property market without having to go it alone. By teaming up with other investors, you can share the costs and benefits of owning property. This can be a more affordable and less risky option than buying a property on your own.

Not only will you be able to invest in some of the best properties in the market, but you’ll also have access to expert advice and support from the rest of the syndicate. This can be an invaluable resource when it comes time to make decisions about your investment.

In most cases, there are two roles in real estate syndication: the syndicator and the investor. The sponsor is also known as the syndicator.

What you’re best suited for is determined by your talents, competencies, means, and funding available.

The Difference Between Crowdfunding and syndication

In the last decade, the terms “syndication” and “crowdfunding” have been used interchangeably. These two words, however, are not synonymous. Investors are found through syndications, which are financial interactions or partnerships between them. One method of locating these investors is to use crowdfunding.

What is real estate crowdfunding?

The process of seeking for and engaging investors is referred to as crowdfunding. It might be utilized for a variety of reasons outside real estate syndications. You may have come across or given money to a GoFundMe site, for example. “Crowdfunding” would be the catch-all phrase that describes this sort of marketing and accepting fast cash. Entrepreneurs or individuals wanting to start up a new business or buy real estate might also crowdfund – they can create a blog or website where they advertise their objectives in the hopes of gathering a “crowd” of investors. Each type has three basic types: equity-based, donation-based, and debt-based.

What is a real estate syndication?

Signing over your partial investment and agreeing to the conditions set by the project’s manager is how syndications work. You can then leave the rest of your decision-making responsibilities to the project/investor manager, who will hopefully help you achieve your agreed-upon return on investment. The following are some of the major advantages of investing in syndications (1) the ability to invest in a larger transaction than you could do on your own, (2) you don’t have to worry about day-to-day specifics and procedures, and (3) at the same time, you may potentially make more money than with a smaller solo investment.

Make sure you choose your position wisely.

If you’re good at finding and managing houses but don’t have a lot of cash, a position as syndicator might be ideal. The sponsor searches for and secures the property with a contract, usually controlling the investment as well. Occasionally, the sponsor will put in a little bit of money (maybe 5%–10%).

The syndicator typically receives an acquisition fee for bringing in the deal, which is essentially a commission. The fee varies, but it averages around 1%.

The lender provides the funds to purchase, renovate, or operate the property. The syndication is complete once it’s secure or sold in a planned exit strategy. Those members are looking for a passive role in which they put their money into the deal and receive a return on that investment every month or quarter.

The sponsor receives a share of the profits, regardless of whether or not he or she put money down. The sponsors, on the other hand, offer the other investors an annual “preferred return” ranging between 10% and 12%.

There are several options for sharing the profits.

Consider the following scenario. You’re a sponsor who bought a property for $1 million. Four lenders provided $250,000 to make up the total of $750,000, but all five of you have agreed to invest in 20% of the business.

A deal has been done between you and the other investors. You’ll receive a 1% fee of $10,000, which is a total of $1,000 each. The building’s yearly net operating income is $80,000. Each investor who put cash in receives a 5% preferred return, or $12,500 per person. You distribute the remaining $30,000 five ways at a cost of $6,000 each.

For the investors, this is a 7.4% yearly return on their money. That’s in addition to any appreciation in the property they may profit from when it sells. You’ve made $16,000 without putting any of your own money into it as the sponsor.

If the property is managed by a third-party property management firm, this scenario takes place. You may charge a management fee based on rents if you,

Let’s assume the group agrees to pay you to collect rents, maintain the property, pay the bills, and keep it in good shape. They’ll give you a 10% management fee on $120,000 gross income. This is $12,000 more than the $6,000 profit you’ve made as a return over the previous five years.

Of course, you don’t have to split the returns equally. You could give 70% of the profits to the passive investors and 30% to you as the sponsor. It’s possible that 80/20 or 50/50 is more appropriate. It’s up to the syndicator and investors to work it out. It might be connected to how much effort you invested in getting and maintaining your investment.

If you buy a home with a lot of work ahead of it and will handle it on your own, you should take a greater percentage of the profits. Evicting tenants, maintaining the property, or making improvements to make it more appealing to renters might be necessary. That’s unquestionably worth more money.

Make a decision.

Syndications are generally set up as a limited liability company or a limited partnership. The sponsor in these instances is referred to as the managing member or general partner, depending on your state’s legislation. Limited partners or simply members make up the investors.

The possibilities for a syndication agreement are endless. To assist you in drafting a contract that protects everyone, get guidance from an experienced real estate lawyer. Working with someone who has prior syndication expertise is ideal.

Make sure everyone is on the same page at all times by establishing voting rights and communication standards. You may also want to hold quarterly lunches or meetings to talk about the property’s development and future steps.

Exercise caution

While being a sponsor appears to be an excellent opportunity, you have a significant duty to your investors. They’re counting on you for knowledge and diligence, as well as for fiduciary care of their money. You must be skilled at active asset management, but you’re also responsible for reporting and accounting. As a result, you’ll need the ability to manage files effectively.

Make sure you can do the job well when you’re applying for investment funding for a project. The sponsor’s duty is usually to handle any issues that arise, and your passive investors are inactive for a reason. They don’t want to deal with the day-to-day frustrations of operating an income property. That’s why they pay you extra money.

Keep a close watch on the situation, and be ready to respond to risks as they arise. To advise your investors on the property’s exit plan, as well as suggested selling windows.

Despite the difficulties, real estate syndication may be a success for real estate investors. Just make sure you put in the effort and have faith in your partners.

 

How To Boost Your Home’s Curb Appeal This Spring

This Spring, enhance your home’s curb appeal to improve its attractiveness to potential buyers.
Spring is a fantastic time to put your house on the market! Spring’s momentum is rapidly increasing, but many homeowners are still concerned with thawing ice, a coating of muck, and even snowfall. With changeable weather in the early spring months, achieving that stunning summer curb appeal may be tough. While buyers are well aware that the spring weather has an impact on how people see your home for sale, making that ideal first impression is never far from their thoughts when selling theirs.

We have some fantastic ideas for making your home’s curb appeal outstanding in this spring months.

Keep your home clear of debris as the snow melts.

Spring is coming, which means the snow will start melting! All that snow covered up all the extra clutter on our porch lawn. Now it will be melted, and we have to deal with all of that mess!

This can be an excellent opportunity to clean up your home’s exterior and increase your curb appeal. By following our tips, you will make your house look amazing and get it ready for potential buyers. Curb appeal is vital in getting people interested in your property – so make sure to follow our tips!

Actually, Cleaning up your exterior space is essential to giving that excellent curb appeal. Remove any waste bins, trailers or boats from the driveway so it’s clear and easy to see what you have available for potential buyers who are looking at moving into their next home! If there’s anything left behind like gardening tools in summertime, then be sure not forget about them as well – this will only help improve how attractive our neighbourhood looks on foot when people pass by walking along Main Street.

It may seem like some small tasks, but they can make a difference if taken care of. By cleaning up your home’s exterior, you can make it look nicer and improve its value.

Create an Inviting Entrance through your door.

It’s all about making a good first impression! Make an impression on potential buyers by setting the stage. It is entirely feasible to accomplish with little effort.

While watering the ground and planting a beautiful garden may not be possible until later in the spring, including a few hardy container plants will brighten up your doorway while Mother Nature catches up! Tulips, daffodils, and hyacinths are wonderful, hardiespring flowers that will provide a lovely burst of color. A modest amount of durable greenery is also permissible. You could keep your container plants in the car or in the mudroom till the storm passes or overnight temperatures rise.

Paint your door and trim on your front porch to bring fresh life into your home after a long winter and to brighten it up. You may either keep the same colors or try something new for fun.

Finally, a welcome mat is an excellent method to add warmth and color to your front walk. A simple welcome design on a clean coco coir welcome mat will go a long way in making your outside more inviting.

There are a few more reminders to bear in mind while designing an appealing threshold is that less is better. It’s tempting to go overboard, but it may ultimately be distracting to your home’s natural appeal. A clean, bright entryway is preferable to having too much clutter. For additional ideas on decluttering your house, check out our blog post about organizing your possessions.

Use artificial turf to revive your damaged lawn.

Front yards are the first thing potential homebuyers notice about your property. If it’s looking worn or outdated, they may walk away without considering listing with you because of how unimpressive that area is compared to other listings in better condition.

Front yard upgrades can be costly and time-consuming, but if done suitable – even synthetic lawns- will make any house more appealing on paper (and maybe turn heads before someone walks down those curb appeal streets).

Installing our artificial turf will revive your damaged lawn, make it look new again in just a few hours, and increase your curb appeal. Plus, you won’t have to worry about pesky maintenance or watering.

Keep up with Springtime Home Maintenance

When your house is in need of attention, it’s easy to see. As a result, keeping up with your spring home maintenance should always be at the top of your priority list, especially if you are selling your property. Cleaning out and maintaining your gutters will improve the curb appeal of your property and get it in the best shape possible for purchasers.

Adding some exterior lighting, either functional or decorative will impress buyers and boost your home’s curb appeal. This is especially beneficial during the spring since we know that the days are starting to get longer, but evening showings may still be darker hours of the day. Since the exterior is often a great selling point, consider adding conversation areas or outdoor living spaces.

Finally, make sure your entrance and pathways are clear of snow, mud or ice as well. Depending on how many showings your home has scheduled, you may want to incorporate this into your daily routine so pathways are clean and clear at all times.

Here are the top five costly mistakes home buyers make.

1. Mistake Uncertain of what they can afford before they make an offer.

The most effective way to prevent this from happening is to apply for pre-approval for a mortgage, which means you know precisely how much you’re able to pay. Pre-approvals typically cost nothing.

2. Uncertain of who the agent represents.

If the agent isn’t acting as your buyer’s agent and represents the seller. Most people aren’t aware of this.

3. Mistake The wrong mortgage to choose.

A poor mortgage could result in tax penalties of thousands and interest. Ask an accountant for advice prior to you decide on the mortgage you want to take out.

4. Mistake Finding no issues with the house prior to buying it.

Always get a professional inspection at the house prior to buying it, as you might end up with enormous repair costs later. Learn this article to avoid the trap of a financial loss.

5. Mistakes Unaware of how their credit will affect their ability to buy or refinance a house.

Find a mortgage expert to guide you through and create your credit report before buying a home.

The most important thing is to hire a trusted and licensed realtor who will assist you throughout the buying process.

5 Tips for Buying an Investment Property

If you’re considering buying an investment property, there are several things to keep in mind before you commit to the purchase. The key to your success with the property will be researching and planning to know what factors will affect the house’s value and how much of your time and money you’ll need to put into it to maintain its value over time. Here are five essential things to consider before investing in a property. If any of these crucial things don’t make sense to you, or if you find them too complicated, be sure to talk with an expert who can help guide you through the process.

1. Risk in Real estate investing.

Real estate investing is a lower-risk option than other investments, such as stocks or cryptocurrencies. To assess the risks involved, it is essential to thoroughly research the property, the area, the appreciation over time, and future plans. You should also consider operating, mortgage, and maintenance costs when investing in property. 

2. Your Financial Situation

Before you consider investing in property, It is essential to assess your financial situation. These investments are not cheap, so be prepared to invest substantial money upfront and over time if you have to mortgage. When determining your financial situation, consider your income to debt ratio. This could make a difference in whether you can use your existing funds for the investment or not. Consider how much cash you have available after the acquisition. This can help with closing costs and emergency fund requirements.

3. Property Management

Depending on the type and size of your property, you might need management services to maintain it operational after you have bought it. It is wise to hire a property manager to manage your rental property. They can find tenants, handle legalities, and maintain the property. This will take the burden off your shoulders and allow you to concentrate on other investments and personal ventures.

4. Property location

The “where” is much more important than “what” when investing in property. Property prices heavily depend on the location of the property. The property price in urban areas will always be higher than those in rural and suburban locations. The high cost of living in urban areas will result in higher long-term profits. Because of the ease of access to transportation and social factors, urban lifestyles are often more appealing to the masses. Once you have purchased the property, the property’s location will be determined by who your target audience is. If you plan to rent your property out to families, you might consider buying a property in Brampton and Mississauga, the best places to purchase real estate in Ontario.

5. The One Percent Rule

The real estate’s one percent rule states that the monthly rent should not be less than 1% of the property’s price. Your property rent should cover your monthly mortgage payments. This ensures that you don’t invest your income in the mortgage but rent the property. This is what will make renting a rental property worth the investment.

Canada Real Estate Statistics You Need To Know

There are over 140,000 real estate brokers, agents, and salespeople in Canada. Working through 79 boards, the Canadian Real Estate Association (CREA) reports that these professionals help more than 4.8 million consumers purchase homes every year.

In Canada alone, Statista.com reports 258,054 employees in the Canadian real estate industry in March 2021.

The largest real estate association in Canada is OREA, which is made up of 82,000 REALTORS® from 36 real estate boards. 

The most expensive residential property in Canada is a mansion Chelster hall in Oakville, Ontario.

TREB is the real estate board for Toronto, North York, Scarborough and all of the Greater Toronto Area – one of the largest housing markets in Canada. TREB represents more than 62,000 salesperson and broker members who are responsible for more than 560,000 active residential real estate listings across the GTHA.

Although the real estate industry is booming, it is also highly competitive. A NAR study reported that an estimated 87 percent of all new agents fail within the first five years, with only 13 percent of agents being able to make it.

The national average home price in December 2021 was $716,585.

6 Things You should consider before Buying a House

The most important thing about moving is choosing the right neighborhood. What are the key characteristics to look for when choosing a neighborhood?

You can’t change the location of your home. Make sure it is in the right place.

6 things you should look out for in your neighborhood

1. Safety

Many homebuyers are concerned about the safety of their neighborhood. You should look for a safe neighborhood with a low crime rate.

Take a look at street lighting. Is the area well-lit? Are you considering buying a property near a well-lit area?

Is there a watchdog in your neighborhood? What is the crime rate in the area? Ask residents if they are walking their dog, or mowing their grass.

2. Commute

Consider your commute to and from the home. It’s not just about your commute to work. If you frequently travel, consider your commute to an airport.

Even if your work is remotely, it’s likely that you will be visiting the same places regularly. Perhaps you plan to visit a local physical therapist or take monthly business trips. You can find out what the commute costs to most frequently visited places by doing a quick search.

3. Walking Paths and Community Parks

You can take note of the community parks and walking paths in the area if you have children or dogs. You should look out for good parks, trails, and paths in your neighborhood.

Are the sidewalks in good condition? Are the playgrounds in good shape? Is the house close to trails and parks you enjoy?

4. School District

The school district in which the home is located is one thing you can’t change. This is why it’s important to find a great school district in your neighborhood. Ask your agent to provide information about the school district, including the reputations and test scores of the schools.

Even if your children do not live with you, or you are planning to send them to private school, the school district will be relevant for your resale. It doesn’t have to be a deal breaker. However, it is important to know that a less desirable school district may impact your property value when you refinance or resell.

5. Shopping, Restaurants, and Entertainment

Consider the proximity of shopping, entertainment, and restaurants. Consider the distance between your home and the grocery store. Also, consider whether there are nearby restaurants or coffee shops that you might enjoy.

Is there an event venue nearby? What about nightlife? These may be considered pros or cons, depending on how you live and what level of traffic and noise you enjoy.

6. Medical Facilities

No matter how often you need medical attention, it is important to find quality facilities in your neighborhood. Check out the reputations of nearby hospitals.

You should consider whether primary care providers are available near the property. How close is your home to any specialists if you need them? While many people are happy to commute to see the right provider for their care, it is important that you understand these details before you make your final decision.

We are available to assist you when you’re ready to move. Get in touch with us today to get going!

Mississauga Location

268 Derry Rd W Unit 101, Mississauga, ON L5W 0H6

Brampton Location

2 County Court Blvd #150, Brampton, ON, L6W 3W8

Halton Hills Location

23 Mountainview Rd S, Georgetown, ON L7G 4J8