Buying Pre-Construction Condos in London Ontario

Buying Pre-Construction Condos in London Ontario

Ontario is bustling with new condo developments. Large, multi-storey structures are going up all across the region. If you’re thinking about investing in one of these new developments, you might be contemplating the purchase of a pre-construction condo. Choosing to buy pre-construction condos in London Ontario can come with numerous benefits. For instance, the opportunity to customize certain features, more time to save for a downpayment and the ability to move into a brand new home. However, it’s important to understand the risks associated with this sort of investment. To give you a better understanding of how a pre-construction condo sale works, we’ve detailed a list of items to keep in mind. Follow along below to learn more!

What is a Pre-Construction Condo and Why Would You Want One?

Pre-construction condos are condo units that have not yet been fully built. This means that they cannot be lived in or rented right away. When you buy a pre-construction condo or house, it means that you are the first buyer of that asset. As such, you’re afforded benefits like buying in at a lower price. This allows you to capitalize on future advantages like the appreciation of your unit and the potential for it to be rented out at higher rates. Buyers who choose to invest in pre-construction condos purchase the unit from the developer. One perk to this is that buyers don’t need to spend time going back and forth with sellers, making offers that might not be accepted.

Lots of buyers choose to invest in a pre-construction condo since it allows them more time to save for a down payment. This is because the closing date of a pre-construction condo typically does not occur until a few years after signing your purchase agreement. This is very different from buying resale where the down payment must be paid within weeks of signing the contract.

Another benefit of pre-construction condos is the option to customize your unit. Many developers will offer buyers some creative freedom with the interior finishings. This is great for those who want to move into a home that reflects their personal style. Generally, buyers will be presented with various options for cabinetry, floors, countertops, and other features. 

Moreover, moving into a pre-construction condo will give you the peace of mind that comes with living in a brand-new unit/building. This means less maintenance, reduced bills (thanks to energy-efficient appliances/systems), and the comfort of knowing that everything will be under warranty.

So, what could possibly deter a buyer from wanting to purchase a pre-construction condo?

What are the Risks Associated With Buying Pre-Construction Condos in London Ontario?

As you might suspect, buying a pre-construction condo is not all deals and dollar signs. In fact, there are a few caveats that can make this sort of investment risky. Especially, for the wrong buyer. One of the most obvious disadvantages of buying a pre-construction condo is that you won’t be able to move in right away. While this does afford you more time to save, it’s not ideal for those who need a place to live on a specific timeline. This can be made even worse by inevitable construction delays. Things like permits, supply chain issues, weather and financial loss can all impact the completion date of a pre-construction condo.

The other downside of buying pre-construction is that you have to pay phantom rent. This refers to the period between taking ownership and actually moving in, also known as interim occupancy. Interim occupancy can range from a few weeks to a couple of months. While you won’t need to pay your mortgage during this time, you will need to pay rent. In Canada, the money you pay during your interim occupancy is often called phantom rent.

One risk that buyers usually neglect, is that everything to do with the building is subject to change. This means that even if the developers market your property as having a full-service gym, luxury pool or spa, there’s always the risk that none of it is included in the actual build. The site plan, unit layout and amenities can all undergo significant changes or reductions once the building commences. Builders always put forth their ideal end-product in marketing material. However, it’s important to keep in mind that it may not look exactly how it’s pictured in the advertisements.

Contact us Today! 

There are lots of factors to consider when buying a pre-construction condo! If you have any questions about what you read, or a property in the area, contact us today. Discover more information on buying and selling in London, when you reach out to one of our trusted team members. Be sure to check out our Instagram page for the latest updates and more. We’d be happy to help you find an awesome property in Ontario. Feel free to reach out to us at any time, we look forward to working with you soon!

Planning an Add-On for Your London Ontario Real Estate!

Planning an Add-On for Your London Ontario Real Estate!

Adding onto your existing home is a great way to create more usable space and improve the value of your property. If you’re thinking of embarking on such a project, it’s important to plan thoroughly before you begin construction. Creating a detailed budget, designing the desired outcome, and understanding zoning laws are all critical to the success of your renovation. By investing time and effort during the planning phase, you can reduce stress and ensure a smoother construction process. To help you get started with your goal of a home addition, we’ve outlined some things you should know beforehand. Follow along below as we provide helpful tips for enhancing your London Ontario real estate!

What Kind of Home Additions Can I Make to London Ontario Real Estate?

  • Above-Garage Addition
    It’s very common for homeowners to add a living space above their garage. This is especially true for those who want additional space, but don’t want to change the existing layout of their home. An above-garage addition helps save space, add property value, and provide a comfortable space within your home. If this is an addition you are considering, remember that building an above-garage addition can be structurally complex. This is because you need to ensure that the weight of your addition can be held up by the existing structure. An above-garage addition is often a much better investment than a garage conversion since many modern buyers prefer having a garage over the additional space. 
  • Sunroom
    Sunrooms are a more budget-friendly alternative to a full-room addition. However, with this in mind, you will likely only recoup half of the costs of a sunroom compared to a full-room addition. This is because a sunroom’s square footage is often not counted in the total square footage of your home. Instead, it’s often classified as a “three-season porch”. This is because the room is only used during the spring, summer and fall seasons. Often, due to the fact that these rooms are not well-insulated, and are thus an energy drain to heat/cool. 
  • Single Room Addition
    Finally, there is the single-room addition. This is best for those who only need the additional space of one room or to expand the size of an existing room. For instance, a kitchen or bathroom. Unlike sunrooms, when done right, these can improve the value of your home and contribute to your overall square footage. Usually, single-room additions are done adjacent to the existing structure. Consequently, these projects can alter the amount of space you have in your yard for entertaining or gardening. 

What do I Need to Consider When Planning for a Renovation Like This?

As you might imagine, building a home addition comes with many considerations beyond what you want the end product to look like. All of the add-ons mentioned above require permits and compliance with local zoning bylaws before construction can commence. As such, while developing your plan for renovation, it is important to take the time to familiarize yourself with the zoning requirements of your property. At the same time, you should also consider doing research into local building codes to get a better sense of what can/needs to be done in order for your project to be successful. These guidelines provide key information about the maximum height of structures, the distance your structure must be from your property line, public infrastructure requirements, and more. Failing to abide by these guidelines can result in fines or the modification of your home addition after construction. 

Oftentimes, to navigate this process, homeowners will enlist the help of a trusted local contractor. This is beneficial because a contractor will be familiar with the requirements and regulations of building a home addition. From zoning bylaws to keeping up with code, they are a valuable resource to have when beginning such a project. 

During the construction process, it is also important to keep up to date with inspections. Inspections must be done to ensure that your project is progressing according to building codes and regulations. At the time of inspection, your inspector will likely examine things such as the foundation, framing and structural elements to ensure that everything is being safely built. They’ll also take a look at electrical components and drainage systems. 

Contact us Today!

Building a home addition for London Ontario real estate is a great way to improve your property! If you have any questions about what you read, or a property in the area, contact us today. Discover more information on buying and selling in London, when you reach out to one of our trusted team members. Be sure to check out our Instagram page for the latest updates and more. We’d be happy to help you find an awesome property in Ontario. Feel free to reach out to us at any time, we look forward to working with you soon!

How to Get the Best Mortgage Rate for Ontario Real Estate for Sale?

How to Get the Best Mortgage Rate for Ontario Real Estate for Sale?

Finding the best mortgage rate for Ontario real estate for sale is on the the top of many Ontarians’ minds. With the cost of living in Canada currently at a peak, it comes as no surprise that several people are looking for ways to cut back on their expenses. This is especially true for homeowners who bought a property that would’ve been out of their price range during the pandemic lows. To help you get the best mortgage rate for your home, we have put together a list of tips. Follow along below to learn more!

Tips for Finding and Acquiring the Best Mortgage Rate

  • Do Your Due Diligence
    In order to scope out the best mortgage, you need to do your research. The first step in your research process should be to consider your financial needs and goals. Once you have a clear idea of what these look like, you’ll have a greater understanding of what kind of mortgage you want to find. At this time, you should also look into the current market and see where interest rates are at. Doing so will give you an estimate of what the average lending cost will be and how it might change in the near future. 

  • Improve Your Credit Score
    Another way to help yourself get a better mortgage rate is to improve your credit score. While it may seem obvious, many homebuyers are quick to throw out this solution because it often takes time to see results. Despite this, improving your credit score can be done with a few simple steps. For example, making larger payments on outstanding credit card bills, paying off any collections on your report, and keeping your outstanding balance on your credit card(s) low.

  • Pay Off Debt
    To get the best mortgage rate, lenders will examine your debt-to-income ratio to assess your risk for borrowing money. Most mortgage lenders use two main ratios to decide if a borrower is able to afford the loan. These ratios are the Gross Debt Service (GDS) and the Total Debt Service (TDS). Your GDS is the percentage of your monthly household income that covers your housing costs. The CMHC recommends that this does not exceed 39%. On the other hand, your TDS is the percentage of your monthly household income that covers your housing expenses and any other debts. The CMHC advises that this does not go over 44%.

More Advice to Consider

  • Make Sure You Have Stable Income
    Having a stable source of income is a critical part of qualifying for a great mortgage. Lenders want to know that you have a steady flow of cash coming in monthly. For lenders, the greater your income stability, the less likely you are to default on your payments. In order to improve your income stability, first evaluate the amount you spend vs. the amount you make per month. Then, determine where you can cut down on spending and where you can afford to make more. 

  • Save for a Greater Down Payment
    This tip is only applicable for those who are buying new, however, it’s worth noting that saving for a larger down payment will help you acquire a better mortgage rate. By putting more down on your home, you minimize the amount you need to borrow. This can make you more attractive to lenders and ultimately contribute to your success in getting a lower interest rate. In general, saving for a down payment that is 20% or greater will ensure that you receive a more favourable interest rate. 

  • Shop Until You Drop
    When making any large purchases or financial commitments, it is important to shop around. After all, you don’t want to get stuck with a mortgage that doesn’t suit your financial situation. To ensure that you get the most suitable mortgage, make a list of potential lenders and see what each one has to offer. Evaluate them based on the rate they give you, the term and conditions, and the amount of flexibility you will have. When it comes time to choose one, pick the lender that best fits the goals and needs you outlined in tip number one.

Contact us About Ontario Real Estate for Sale!

Acquiring a mortgage for Ontario real estate for sale can be challenging! If you have any questions about what you read, or a property in the area, contact us today. Discover more information on buying and selling in London, when you reach out to one of our trusted team members. Be sure to check out our Instagram page for the latest updates and more. We’d be happy to help you find an awesome property in Ontario. Feel free to reach out to us at any time, we look forward to working with you soon!

Can You Afford a Cottage for Sale in Ontario?

Can You Afford a Cottage for Sale in Ontario?

The cottage market in Western and Eastern Canada is home to numerous desirable properties. Despite minimal new listings, and low market activity in this sector, the value of most recreational properties remains high. For Canadians who are lucky enough to already own a cottage, many are holding on to their properties hoping to cash in at a later date. However, with market conditions stabilizing across the country, experts have noted that now could be a favourable time for new investors to purchase a cottage for sale in Ontario. Despite high mortgage rates, the expected increase in supply will make it much easier for buyers to make their move! If you’re contemplating buying a cottage this summer, we’re here to help. Below we’ve outlined some key questions to ask yourself before pulling the plug on such a large investment. Follow along to learn more!

Does a Cottage Suit Your Lifestyle?

During the pandemic, it became commonplace for buyers to invest in or relocate to their vacation properties. Living on a remote property or on the water were also popular choices. Although, now that we have returned to normalcy, the economic landscape has returned to what it was prior to the pandemic. As such, many jobs that were once available remotely, have now returned to in-office. At the same time, conventional home prices are also on the rise with more people looking to move back into the city. For buyers of vacation homes, these trends present two important questions that must be answered: where do you want to live? And, does your job support remote work?

Of course, if you plan on using your vacation property only a few times throughout the year, these questions will matter much less. However, if you plan to relocate yourself to a cottage, answering these is critical in making the right decision. If you need to live near the city, owning a cottage may not be favourable for you. Most cottages are located outside of metropolitan areas, as this is what often gives them their appeal. But, for those who work remotely or don’t need to be in the office 24/7, a home outside of the city can be a perfect retreat. The peaceful surroundings and natural beauty offer a refreshing change of pace from the hustle and bustle of urban life.

Can You Afford a Cottage for Sale in Ontario?

For the majority of Canadians, a second home is out of reach. Not too long ago, cottages used to be very affordable—allowing several homeowners to buy a vacation property in addition to their primary residence. Cottages afford several benefits like opportunities for outdoor recreation, being closer to nature, and a break from everyday life. But, with so many Canadians flocking to cottage country during the pandemic, prices aren’t what they used to be. Now, buying a cottage is as expensive, if not more expensive, than your average single-family home. For this reason, it is crucial to evaluate your financial situation before deciding to purchase a cottage. 

Despite higher-than-normal cottage prices, eager buyers will be happy to know that the cost of a cottage in Ontario is on the decline. In May, RE/MAX reported that Ontario had experienced an average price decline between five and 29 per cent over the last year. 


Some Market Statistics for Cottages in Ontario

According to RE/MAX, several Ontario regions have seen significant drops in average sale prices. For example, Southeast Georgian Bay, Honey Harbour, and Port Severn have all seen a year-over-year decline in price of 28.7%. Another area with a large drop in price includes Sudbury with a 16% discount on average sale price. 

Experts are predicting that cottage prices will increase in 72% of recreational markets by the end of 2024. This could make Q3 and Q4 of 2024 good times for cottage owners to profit off of their investments.  In Muskoka and Haliburton Country, there has been a flood of sales despite affordability challenges. What’s interesting is that most buyers of cottages in Ontario are families and young couples. This is a stark shift from just a few years ago when the recreational property market was mainly driven by retirees.   

Contact us Today!

Finding a cottage for sale in Ontario is an exciting process! If you have any questions about what you read, or a property in the area, contact us today. Discover more information on buying and selling cottages, when you reach out to one of our trusted team members. Be sure to check out our Instagram page for the latest updates and more. We’d be happy to help you find an awesome property in Ontario. Feel free to reach out to us at any time, we look forward to working with you soon!

Navigating the Market of Ontario Luxury Properties

Navigating the Market of Ontario Luxury Properties

Navigating the luxury property market in Ontario can sometimes present a unique set of challenges. With luxury transactions, there is a lot to consider before making a decision. Whether you are buying, selling or building, it is important to take your time and ensure that you understand the Ontario real estate market that you are working within. This will be of great benefit as you inch closer to achieving your real estate goals. In this article, we will be going over some of the intricacies that come with buying and selling Ontario luxury properties! Follow along below to learn more. 

How to Navigate the Luxury Real Estate Market in Ontario?

  • Find an Agent Who Specializes in Luxury Real Estate
    The best thing that you can do as a buyer or seller, is find an agent who specializes in luxury real estate. This will ensure that you get access to their expert advice, effective negotiation strategies and knowledge of Ontario market trends. Luxury real estate professionals have unique expertise that you may not find with agents who work in other sectors of the real estate industry. When selecting an agent, make sure they have a proven track record and positive reputation. You’ll also want to double-check that they are well-connected and have an intimate knowledge of the area you want to buy/sell in.
  • Choose a Great Location
    As a buyer or investor, the location of your luxury property is paramount. This is because location is a major determinant of what is possible/allowed on the property. For investors, this might mean checking the zoning of your desired property to ensure that it allows for short-term rentals. For buyers, it might mean researching nearby amenities and future development plans to ensure maximal ROI. Besides this, the location you choose will inform your lifestyle and the prestige of your property.
  • Know the Amenities and Features
    When buying a luxury property, knowing which amenities and luxury features you want is important. This will help you narrow down your search for a property. From smart home technology to expansive pools, there are several different amenities to choose from. Select the ones that you think align best with your lifestyle!

As a seller, understanding the value of your luxury amenities is just as important. Unique amenities are a great selling point for luxury homes. Playing into this when marketing your home is a strategy for success.

More Tips and Advice

  • Do Your Research

Doing your research before buying or selling a luxury home is critical to your success! Taking the time to look at comparable properties, tour different homes, and talk with industry experts will help you greatly. Whether you’re deciding on a listing price or putting in an offer, it’s best to have all of the information beforehand. This will help you negotiate more effectively and protect your financial well-being. If you’re not sure where to start, reach out to a trusted luxury real estate expert!

  • Marketing is Key

For sellers, marketing is a must. Even if your property only caters to a small percentage of buyers, presentation remains critical. Investing in professional photography and videography can make a world of difference in the success of your listing. Additionally, having your home staged or creating virtual tours can greatly impact the traction your listing receives. Thus, highlighting the property’s features and drawing in more qualified buyers.

  • Negotiate Effectively

Lastly, in any luxury real estate transaction, you must be able to negotiate effectively. Or, have someone who can do so on your behalf. Negotiation in the luxury market often requires unique strategies and experience. Professional luxury real estate experts can help you navigate luxury real estate negotiations all while upholding discretion and confidentiality. 

Contact us About Ontario Luxury Properties Today!

Buying Ontario luxury properties can be tricky—especially if you’re new to the luxury market! For those interested in learning more about buying, selling or investing in luxury real estate in Ontario, contact us today. Discover more information on buying and selling in the area, when you reach out to one of our trusted team members. Be sure to check out our Instagram page here for the latest updates and more. We’d be happy to help you find an awesome high-end property in Ontario. Feel free to reach out to us at any time, we look forward to working with you soon!