Is it just me or is it insane that almost every day there is a new condo launch. Either I am doing something wrong or the Agents selling new condos off plan (pre-construction) know something I don't.
So hear me out for a sec..
Today you can buy a resale condo downtown at approximately $500 a sq.ft. If you are an investor you would need to put a min of 20% down to get financing. If you need time to save up for a down payment then open a bank account and put your deposits in there until you are ready to buy.
If you want a pre-construction condo you would buy a unit at approximately $650 a sq.ft. The builder requires that you put down approx 20% as down payment within the first year. The builder has up to 15-20 years to build the condo but they tell you it will be built in 3 years. OK...if all is equal then in 4.5 years the unit will be delivered to you.
The math is simple!!! Why buy a new condo at future value when you can buy and old condo at present value?
My advice is to buy a resale condo today...rent it out for 5 years...and dump it or......re-finance tax free and do the same thing again!!!
Let me know if you think I am wrong!