When you invest in a pre-construction condominium unit, your investment increases in value from the first day you purchase the condo unit and sign your Agreement of Purchase and Sale. The value of that unit will continue to increase until you decide to sell.

This long-term investment strategy is one of the best ways to generate a passive income. Real estate is considered one of the safest investments you can make, and this is because you have complete control over this investment. The real estate market is cyclical, and similar to any other market, it can go up and down. The benefit is that when it's down, you can hold onto your property and continue to make a passive income until it goes back up. Despite the fluctuations, the rental market will always remain in high demand, which means you will still have your tenant covering your carrying costs.

Another benefit is leverage. Leverage refers to the borrowed capital you use to pay for your condo unit. With stocks and other investments, your growth is based on the total amount you invest, but with real estate, you typically pay 20% as a down payment, and the bank will give you a loan for the remaining 80%, also known as a mortgage. However, your real estate property will appreciate at 100% of its value. This means that you make percentage gains on a higher amount than you've actually invested, earning you more money.

Once you choose to sell, you can take advantage of tax benefits. You can deduct many of the costs from your taxes, including mortgage interest, property taxes, and unit depreciation. You can even use excess “losses” to reduce your other taxes. As a taxpayer, you can claim the wear and tear of the property to defer your rental income. Once you do sell, you will only be taxed 50% of the capital gains you earned on your property. That means 50% of the capital gains gets taxed subject to the marginal tax rate for the respective tax brackets you are in before you add in the 50% capital gain.

To learn more about how you can benefit from investing in the pre-construction condo market, you can speak to one of our platinum agents by registering with us below. We will give you the information you need so you can make an informed decision and ultimately receive the highest return on your investment.

Why Pre-Construction Condos Are The Best Investment

Key Points

What Are the Benefits of Buying a Pre-Construction Condo?

Leveraging

Appreciation

Mortgage Payments Covered by Your Tenant

Passive Income Month After Month

Income That Keeps Pace With Inflation

Tax Benefits

Control

What Is Platinum Access?

Platinum Agents are a group of real estate professionals that specialize in the pre-construction condominium market. At GTA-Homes, we are a team of Platinum Agents, which means we are the top-performing agents in the industry. We receive first access to pre-construction condo projects, including floor plans, price lists and incentives. By creating relationships with developers across the GTA, we are privileged to offer our clients these promotions first before anyone else.

Not only can we provide you with priority access, but we can also give you advice on the area you want to invest in, including employment growth, population growth, rental rates, appreciation rates, transit and more. So that you can make a more informed decision about your investment. Our goal is to provide you with the right information so that you can make your money work for you.

At GTA-Homes, our agents work for you. Register with us today for more information and to be the first to receive priority access to the best floor plans, prices and incentives.

Why You Should Buy With A Platinum Agent

Key Points

What Is Platinum Access?

Why Choose a Platinum Agent

How do Platinum Agents Receive Priority Access?

The Stages of Platinum Access

Who Do Platinum Agents Work For?