Is the pre-construction market viable on Ontario? star-news.press/wp

Falling sales, promoters who leave the market, scams. Is the pre-construction market viable on Ontario? Construction costs In recent years the observers rose. However, being the lack of the housing on the horizon, some believe that this sector soon has a renewed interest.

Currently there is a pre-computer budget marketsays David Fleming, the Bosley Toronto Real estate group broker, always firmly against this market.

According to him, people have not purchased condominations today, as the required prices are 40 to 50% higher than current prices.

Unless the pricing is a miracle fall, it is very difficult, it will probably not be pre-sale this yearHe said.

Mr. Fleming takes this issue to major construction costs, as well as taxes, costs and government rates that can represent until 35% of the total cost of new homes.

In addition, pre-built homes between 2018 and 2023, at high price, is worth To sell much less. Some buyers must end the purchase at these initial prices, but do not get enough funding to achieve, he says.

For Thomas Delespierre, real estate agents in the signature of the royal lepage, despite the risks, the purchase plan can provide any result.

Real estate sales added significantly in recent years. In 2024, since 1996 we had the sales of the smallest new construction since today has doubled since today’s populationHe said. Because constructions are almost left, the condomins offered will be very limited in some years, which will be interesting for the market, according to the developers.

After returning to the economy, and in the real estate market, I hope to increase the demand for real estate, which will carry out long-term projects, economically viable and more attractive for developers, but also for investorsHe said.

Mr. Fleming, no doubt. Several factors, according to buyers, delays, cancellation risks, clauses that prevent their condominal, construction errors or changes, such as compared to the initial construction plans.

There are all kinds of horror stories. For me, however, the biggest problem is the price. Why pay more for something that is not constructed, which involves risks? He never made sense.

Lack of surveillance

In some cases, the risks of fraud can also discard some buyers.

Housing Construction Regulation Office (HCRA), which allows home manufacturers, has brought up charges against seven companies related to illegal sales in 453 homes.

The business is being done under the same name: American homesVaughan based property developer. The acclaims against them follow a study that violates hundreds of supposed provincial law.

According to HcraManufacturers must have a license from the office to sell the new home of Ontario. Manufacturers will also need to obtain the Authorization of the Tarion, Ontario House Guarantee Agency Agency and register each house for a guarantee program.

A Hcra by violations made American homes While the company did not have a dozen housing and did not require the necessary acceptance, or he obtained recordings for the Warranty New Houses of Ontario, for hundreds of homes, as well as after obtaining a license.

A Hcra List of continuous state in July 2023. After research, Hcra said that Magnitudes of violations and damage to economic damage He encouraged the submission of the complaint against the company and his leaders.

According to Mr. Delespierre, this situation is more Exception and rare standards.

According to him, the problem is not lacking law, but Developer without scrupulous developers who have not respected the rules and law.

I think, unfortunately, regardless of examples of people who don’t respect the law.

Pour Ron ButlerAt the main broker Butler mortgageOne of the problems is that The regulatory authority is not really designed to check for sales offices and sell authorized real estate.

Regulatory authorities are designed to meet the public complaintsHe said. I’m not sure what the solution is, because the costs are very highHe has accepted it, however.

Avoid Bad surprises

Thomas Delespierre always recommends doing business with companies FamousOtherwise, there is a higher risk than the developer fails, the customer never recovers the deposit.

The first protection is that the manufacturer is recorded by TarionHe said.

Mr. Butler is of the same opinion. According to him, the established companies ensure that the rules are friendly.

You may not get the best price, but you will get into the exchange that things are doing well.

On the Ontario, buyers are given a 10-fair reflection period. This time allows you to cancel the purchase contract without punishment.

According to David Fleming, these 10 days must be used fully to study the expert lawyers or real estate agents to study the sales contract.

The problem is that many people don’t want to spend paying a lawyer, who emphasizes Laurence Dutil-Ricard, a lawyer specializing in real estate. Unfortunately, unpleasant surprises (a few years) later (finished sales)He said.

An expert can help prevent A bad surpriseCare to certain parties of the contract, such as assigning someone else or to rent their condom, or, ensuring that the sellers are limited to the elements of the sellers. These are people not pay attention when it looks at the contractHe said.

According to him, buying a Condo pre-structuring can be a good opportunity for someone Solid kidneysBut unlike five or ten years ago, no buyer’s advantage is due to the increase in construction costs.