First, you must decide whether you’re buying a property as an investment or a home to live in.

This is important because there are different tax consequences depending on your purpose. Later in this guide, we’ll cover the topic of interim occupancy, and this may be an unanticipated added expense as an investor.

If you’re buying this property to live in, it’s important to thoroughly research projects to find a community that caters to your lifestyle. Not all projects are designed and built alike, so understanding what you’re looking for will help you narrow down the choices from an overwhelming selection of projects in the province.

Efficient public transportation, including York Region Transit and Go Train services, ensures convenient commuting, particularly for those working in Toronto. Additionally, York Region’s commitment to sustainability through energy-efficient residential developments reduces long-term costs and environmental impact, making East Gwillimbury a smart choice for families and individuals alike.

Here are some valuable questions to ask yourself as you start your search.

If you plan on living in the property:

• How close is it to your work and other essential places?
• Does the neighbourhood suit your style (a vibrant and busy area versus a quiet and relaxed area)?
• How safe is the community?
• If you have children, what is the quality of schools nearby?
• Do you have access to parks and recreational areas?
• If public transportation is important to you, how accessible is it?
• Are you close to restaurants, entertainment, and other social amenities?
• Is there potential for this property to increase in value?

If you plan on buying this property as an investment:

• What are local rental rates, occupancy levels, and renter demographics? 
• Is the area comprised of students, young professionals, families, or a healthy mix?
• What are the historical appreciation rates of properties in the area?
• Are there new developments planned for the area?
• How convenient is the area for a potential tenant?
• Is it near important places like universities, hospitals, public transportation hubs, and shopping?
• How accessible is public transportation?
• What are the projected maintenance fees and what do they cover?
• Do you want to flip it for a quick sale, or do you have a long-term strategy?
• Do you understand the implications of capital gains and HST?

Every pre-construction project will have marketing material with beautiful renderings and impressive architectural designs. But it’s essential to look beyond the glossy photos and dig deeper into the project before purchasing.

Start by researching the developer’s background and industry standing. Have they consistently delivered quality projects? Were past projects completed on time? If there were delays, were they within the developer’s control?

If the developer is reputable, is the project located in an area with potential for appreciation? Are there other development plans for the neighbourhood?

What kind of amenities and features will come with the project? For condominium projects specifically, standard features often found include:

• Fitness facilities
• Outdoor entertainment spaces
• Pool facilities
• Shared social areas

Check the floor plans offered to see the different layouts available. Here are some important things to find out: 

• How many bedrooms, dens, and washrooms are on that particular floor plan
• What direction is the unit facing
• If it’s a condo, will the view be obstructed by anything (presently or potentially in the future)
• What finishes are being included
• Are there appliances that come with the property, and if so, what kind
• Are there customization options for buyers
• What are the ceiling heights
• Are there any energy efficiency features
• What is the price per square foot (PSF), and if it’s a condo, is there a premium for higher floors

What is the projected timeline for completion of the project? New home construction like townhouses, semi-detached, and detached

homes have timelines different from those of high-rise condo developments.

Will the project be built in multiple phases, as this can extend the completion date? If construction is delayed, how does this affect the completion dates in the contract?  Knowing timelines also helps you plan financing and occupancy expectations.

Is the neighbourhood under development, and are there potentially other projects that will be built in the vicinity? If you’re buying a condo unit for the view, could another building be built in the future that will obstruct your view?

How does the deposit structure work? Most projects need about 20% down, but it won’t be required immediately. You’ll make your first deposit when you sign, then spread out the rest while they’re building, with a final payment at closing.

Here’s a pro tip: Get really clear on when each deposit is due.

You’ll need to give them post-dated cheques upfront. Those cheques will be cashed on specific dates, so you want to make sure you’ve got the money ready when they need it.

While you’re doing your homework on deposits, take some time to check out what’s happening in the neighbourhood. Is it an area where properties tend to sell quickly? Are rental rates strong? These factors can make a big difference down the road, especially if you’re thinking about renting it out or selling it later.

Finally, don’t forget to ask about warranties. While every new build in Ontario comes with Tarion coverage, some builders go above and beyond with extra protection on things like appliances and craftsmanship. Having that extra peace of mind is always nice, especially in a new place.

When considering a preconstruction property purchase, having an experienced team like RE/MAX Team Paliwal guide you through the process gives you many advantages from buying directly with the builder.

Many buyers initially consider working directly with the developer. While their representatives are knowledgeable about their specific projects, they ultimately represent the builder’s interests. Their focus remains on selling their development, regardless of whether other projects might better suit your needs.

RE/MAX Team Paliwal is your dedicated advocate throughout the pre-construction process. Our relationships with developers, built through years of successful transactions, give our clients exclusive access to VIP pricing, priority unit selection, and special incentives unavailable to the general public.

Our experience in the preconstruction market allows us to provide insights into every project in the area. We know which builders have proven track records, which projects historically show strong appreciation, which floor plans are worth purchasing and which ones you should avoid.

Our team guides you through every aspect of the purchase, from understanding deposit structures to securing the best incentives, including upgrades, development charge caps, and flexible payment terms.

We develop targeted strategies to maximize potential returns for investors and help end-users identify layouts that perfectly align with their lifestyles and affordability.

Here’s exactly what you can expect us to help you with:

• Preconstruction timelines and phases
• Contract terms
• Deposits and deposit structures
• New project launch processes and expectations
• 10-day cooling period
• Upgrades
• Choosing the right floor plan
• Appreciation potential
• Financing options
• Assignments
• Development charges
• Rental opportunities
• Local market trends
• Local rental demand
• Upcoming developments and neighbourhood growth
• Occupancy period
• Final closing procedures
• Tarion warranty
• Guidance on where to get sound tax advice
  

With RE/MAX Team Paliwal in your corner, you’re getting decades of combined expertise working to make your pre-construction purchase as smooth and successful as possible.

Click here to read part 2 of guide to buying pre-construction homes/condo Projects In Ontario.

Reach out to our Team Paliwal today to explore your options and discover how you can enjoy a balanced, fulfilling lifestyle just a short journey from downtown Toronto.

Finding the right home can be overwhelming with so many choices and potential pitfalls. Since 2007, Team Paliwal has been turning challenges into opportunities.

Buyers often face issues like navigating a fast-moving market, understanding how much to offer on a property, and managing the challenges of buying a home. Our team brings deep market knowledge, seasoned negotiation skills, and a personalized approach to make sure you’re protected.

Our unwavering priority is always putting our clients first. This is why Team Paliwal is ranked #1 and top 50 real estate teams on Canada on RankMyAgent,com. Our high ratings from satisfied clients is proof that you can get a well negotiated deal, avoid costly mistakes, and find a home that checks off all your boxes.

Let us simplify your journey to homeownership anywhere in the Greater Golden Horseshoe and help you find your perfect home. Join hundreds of happy clients who made the choice to hire Team Paliwal!

Picture by Binyamin Mellish