When thinking of buying a home, you may come across different options. Depending on your needs, budget, and timeline, a pre-construction home might be the perfect choice. In this article, you’ll learn what pre-construction homes are, the benefits and freedoms they offer, and what to consider before making a purchase.

What are pre-construction homes?

Pre-construction homes are properties that are sold before they are built. This phase is the initial step of any construction project, focusing on design and permits. Buying at this stage means there is no physical home yet. Many buyers opt for pre-construction homes to take advantage of lower prices and the ability to customize certain aspects of the property.

Typically, builders or developers, like us at English Lane Phase II, begin the sales process when construction is near. This allows buyers to invest early and benefit from any appreciation in value as the project progresses.

Pre-Construction Benefits

Pre-construction might be an appealing option to certain buyers, specially those who have a long timeline – perhaps buying a home for their kids, planning to move houses within 5 years. Let’s look at the benefits breakdown: 

  • Customization: Many construction companies, including English Lane Phase II by Ghods Builders, allow buyers to customize their homes during the pre-construction phase. Buyers can choose from a variety of options such as trim, interior wall paint color, quartz countertops, and more. Check out our full list of pre-construction home personalizations.

  • Payment Structure: Unlike resale homes, the payment structure for pre-construction homes can reduce stress. There are no bidding wars, and there is potential for market appreciation once the construction is complete. This enhances your investment while allowing you to manage payments more flexibly during the construction period.

  • Flexibility and Time: The deposit structure for pre-construction homes allows you to pay in installments during the construction period. This means you don’t have to pay the full down payment (often 20% or 10%) upfront, giving you time to save and pay over time.

  • Cooling-Off Period: Buyers have a 10-day grace period to back out of the purchase after signing the contract. This allows time to review documents with a lawyer and, if necessary, cancel the purchase and receive a full refund. 

Things to Consider Before Purchasing

  • Timeline: Ensure your timeline for occupancy is flexible. Pre-construction homes are ideal when there is no immediate need to move.

  • Delays: Be aware that although estimated, occupancy dates can be uncertain. Construction delays are common for various reasons, and final occupancy dates are often not set in stone.

  • Budget and Mortgage: Obtain a pre-approved mortgage that aligns with your budget. It’s advisable to get pre-approval from a reputable bank and ensure your budget can accommodate potential interest rate increases by the time the home is completed.

Pre-Construction Homes: A Different Approach

Buying a pre-construction home offers numerous benefits, including customization options, a flexible payment structure, and the potential for significant investment growth. However, it’s important to consider the timeline, potential delays, and secure a mortgage that fits your financial situation. Choosing between buying a home that is in the pre-construction phase or buying a resale at a finished project depends on your timeline and budget.

Picture of Mariana Merino
Mariana Merino

Mariana is a Digital Marketer, Paid Advertising Specialist, Content Creator and Copywriter for Ghods Builders Inc. Her background in International Business and Event Marketing have allowed her to successfully craft marketing campaigns. When she is not hard at work, she likes writing poetry for people, curating art events and navigating in Toronto's artistic scene.

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