Is downsizing a topic that has started to come up in some of your everyday conversations? It may still feel like a few years off, but it’s never too early to start planning. If it becomes something you’re thrown into, selling your family home and moving is stressful and can even feel depressing, as though you’re no longer in control of your life.
Contrast that with a well-thought-out retirement strategy that can lead to a joyful experience where it seems like your life is just beginning. There are new neighbourhoods to explore, new restaurants to try, and unique shops you can’t wait to visit. For some people, it can feel like being a kid in a candy store. So many new adventures, so little time! If you want your downsizing process to be a positive experience, now is the time to begin the conversation. If you start early enough, you might even consider buying into one of Toronto’s many exciting new construction projects.
Why Pre-Construction Is Perfect for Retirees
Toronto is a city that is constantly evolving! One of the most exciting changes is the number of new houses and condos that are either in the works or in the planning stages. All newly constructed homes carry a 10-year Tarion warranty against builder defects, making them ideal for retirees or anyone who wants to be free of most maintenance-related worries.
Options can range from small condos to majestic, spacious estates and everything in between. Floor plans are typically bright and gorgeous, with modern designs and open-concept layouts allowing maximum natural light and airflow.
One issue with pre-construction projects is that they can often take years to complete. This puts them out of the realm of possibility for people who are house hunting today or who are hoping to make a move within the next few months. However, a beautiful pre-construction home or condo can feel like a dream come true for retirees and downsizers who plan ahead and are not in a rush.
Have you ever considered investing in a condo in the GTA? If so, the following posts will give you food for thought:
- Pros & Cons of Condo Investing in Etobicoke
- Should You Hold On to Your Condo or Sell It?
- 5 Things to Look For in an Investment Condo
Types of Homes Available
Condo construction is the most prevalent type of new development in the city. All three levels of government are frantically trying to keep up with the growing demand for housing in an already competitive city. Condos offer the best use of space and are the most cost-effective way to do that. Plus, you can’t help but see the majestic and towering structures throughout the city! Perhaps when you close your eyes, you can envision what they will look like when finally completed!
However, there’s more to new Toronto developments than high-rise condos. You’ll also find many beautiful new townhouses in various stages of construction. Once completed, these homes will provide as much living space as many detached homes without the non-stop work to maintain them. For some people, downsizing to a townhouse is the better solution as it allows them to entertain guests and enjoy outdoor spaces.
Though less common, you will even find developments of new semi-detached and detached homes throughout Toronto. As breathtaking and spacious as these homes will be, their sheer size means they are often not the first choice for downsizing. Still, everyone has a different journey, and life may take you to an unexpected place. Some downsizers may decide a larger home is exactly what they’re looking for so they can live in one space and rent out the other.
What’s the Difference Between Buying Resale and Pre-Construction?
One of the main differences is in the timing. If you buy a resale home, you can take possession as soon as your transaction closes, usually within a month or two. When buying pre-construction, you have no such clarity. The completion date may be several years into the future. And even then, delays can happen.
The sales process itself can be vastly different. If the market is competitive, you can expect the value of a resale home to go up, especially in a bidding war. Multiple buyers may all want the same house, but usually, the seller will accept the offer with the highest dollar amount.
With a pre-construction home, the price is set. You can choose the basic model or pay more for upgrades. The units may sell out quickly, but there is no artificial inflation of the price based on how many people want to buy. These set prices appeal to many who don’t want the stress of engaging in multiple offer scenarios and bidding wars.
On the other hand, buying pre-construction can be more complex. Deciphering the purchase agreement to see what’s included in the base model and what counts as an upgrade can be challenging for a layperson. Beyond that, you have the extended wait for the building to be complete, followed by the occupancy period before finally taking possession.
Do you want even more help with the downsizing process? Here are some resources you may find valuable:
- Your Guide to Downsizing in Toronto in Style
- Where Do Toronto Downsizers Go?
- How to Downsize After a Divorce
Steps to a Successful Purchase
Working with a real estate agent with a background in pre-construction is the best way to handle these complexities. A local expert will advocate for your interests, ensuring you understand what happens during each phase of the purchase. Once you’ve selected your real estate professional, the rest of the pieces will fall into place much more easily.
- Decide on the neighbourhood you wish to live in and what type of housing structure best fits your vision.
- Determine the timeline for your transition. Flexibility is essential since pre-construction is unpredictable, but a goal will help you stay focused and keep moving forward.
- Research the various construction projects in the area you want to live in and get to know the builders.
- Review any possible upgrades with your real estate agent. Some are better to do during the construction process, while others can easily be done later.
- Set aside your deposit. The good news is that you will not need it all upfront because your down payment is spread out over the construction period!
- Sign a purchase agreement only after reviewing it with your real estate to be sure you thoroughly understand the terms.
- If you are applying for a mortgage, get a pre-approval once the completion date is near. This will facilitate the transfer of the title, plus it allows you to lock in the lowest interest rate within a 90 to 120-day period.
Last, but not least, get ready to celebrate! Your long journey is coming to an end, and you’re soon to be the proud owner of a brand-new, never-been-touched home with all the trimmings!
Do you have questions about any of the exciting new developments that are coming up in Toronto? We are happy to provide you with the grand tour! Reach out today ana@asantos.ca or call us at 647.232.7317 for more information.