Are you thinking about buying a pre-construction condo? If so, you need to read this article!
Many first time pre construction condo buyers are not aware of the nuisances that they will face when they move into their new home. Aside from the fact that if your unit costs more than the 400k that you will be paying 13% H.S.T on top of the purchase price they are other things to consider although most will argue that the biggest nuisance is paying 13% tax, and who can really blame them.
Unfortunately the tax is just the beginning to a painful first year or so. Below I have itemized each nuisance that you will more than encounter.
1- Amentias- If you have bought into a condo that comes with all the goodies like a swimming pool, exercise gym, etc... Good luck in being able to use this stuff as it's more than likely not going to be completed for use by the time you take possession. The builder does not get paid for amenities but rather absorbed units. The builder will focus on completing the units prior to anything else first.
2- Fire Alarm- Have you ever been in a high rise building during a random fire alarm drill and needed to leave? Well, get used to this type of practise during construction, the Fire Marshall is required to test the alarms frequently during the occupancy period. Hope you have no place to go or you like taking the stairs cause there is no elevator service during a drill.
3- Construction Noise- In the event that you choose to buy a pre-construction condo you should be aware of surrounding noise, usually multiple phases of construction will occur over a number of years. Nothing like hearing a crane go up and down all day!!
4- Elevator being on service most of the time- This one is a common nuisance and it should be expected as new home owners or tenants will be moving in frequently during the first year, it seems daily in the building I lived in. 1-2 elevators will be in service mode to help facilitate people moving in and out. This means longer wait times for a elevator. Hope your friends order your food for you while they wait because you will be more than likely late for any event, unless you plan better and leave will extra time to spare.
5- Traffic and keeping your cars clean- Expect traffic delays if you're a driver as it is a construction zone. Oh and forget about keeping your clean, mud and your car will become good friends!
6- Occupancy Fees- I could write an article alone on this next point, the dreadful occupancy fees! Most buyers are not aware that with a pre-construction condo comes with 2 different closing periods, the first being the occupancy and the second is when title is officially transferred from the builder to the unit owner. During the occupancy period the unit buyer may live it but cannot rent without the permission of the builder. Also during this time the buyer is obligated to pay an occupancy fee which in most cases is greater than the mortgage payment plus maintenance fees combined! It’s a pure cash grab from the builder and I'm hoping that the provincial government will put an end to it sooner rather than later.