Pre-Construction Prices Are Not Going Down
You are making a HUGE mistake if you are waiting for pre-construction prices to come down before you invest. According to the latest data from Statistics Canada, residential building construction prices are up 17.7% in Toronto over the last 12 months. On a $500,000 purchase, that is $88,500 more than this time last year. Even more mind blowing, since 2017 building prices are up 88.5%!
Here’s the harsh reality - developers will not build at a loss – pre-construction prices are determined by the material & equipment costs, labour, land costs, financing costs, government fees, market factors, and the profit margin a developer needs to commit to a project. If they don’t get this, they simply won’t build, and this is why you have seen a record number of units in Toronto cancelled over the last 24 months – they are just not economically viable.
If you are looking to invest in pre-construction properties, waiting will not help, and you will pay more the longer you wait – trust me on that.
Contact me to start investing today.