“Sales Milestones” or Learning When to Buy Condos
Getting the best deal or “bang for your buck” is almost an art form in Toronto. Developers utilize a variety of marketing and sales tactics to hit certain sales targets and in order to ensure you get the best investment possible it is important to take advantage of the sales and offers, and knowing “when to buy” can be just as important as “what to buy”. Below are key milestones that you can take advantage of to maximize your return on investment.
1) Platinum Launch
Historically speaking, the “Platinum Launch” (the first opportunity to purchase, typically reserved for a select group of real estate brokers like TalkCondo that bring a lot of sales to developers) is the best time to buy a new condominium. Platinum launch prices are typically the lowest they will be during a sales cycle and we have seen prices increase DRAMATICALLY ($10’s of thousands of dollars) in just a few weeks.
Buying at the Platinum launch not only gets you the best prices, but also you have the opportunity to purchase the best suites.
The major caveat of purchasing during the platinum launch is that there is no flexibility on deposit structure. Investors with limited funds that want to invest with 10% or 15% down may need to wait until other “sales milestones” in order to make their purchase.
Members of our “Insiders Club” get first access to many of Toronto’s most exciting Condominium launches!
Members of TalkCondo’s Insiders Club get first access to many of Toronto’s major projects. This past year, our clients were able to save thousands of dollars by purchasing with TalkCondo during the Platinum Launch for some of Toronto’s best projects such as 3018 Yonge, Yorkville Plaza, The Bond, Karma, River City 2, Monde and many more. 2012 will be no different, so make sure you’re signed up!
2) Construction Finance
Typically speaking, a developer needs to pre-sell 70-80% of the building to qualify for construction finance. Sometimes when a development is at around 65% sold, they will roll out some limited time promotions in order to put them over the line to get the financing in place. These offers can include huge discounts, lowered deposit structure, free parking and much more.
Some recent examples of “Constuction Finance Milestone Offers” include:
Treviso Phase 2 October Special Offer – Upto $20,000 in discounts, Additional 1% off, $2,000 Upgrade Credit, $0 Assignment Fee
Theatre Park Free Parking – For a very limited time, Theatre Park offered Free Parking for eligible suites – a $40,000 value!
Mercer Condos Huge Savings – Cashback of upto $15,500 on select suites
Thompson Residences – Cashback of upto $10,000 plus buy with just 10% down
3) Sales Centre Closing Down
Once a development have met all their sales targets and the Sales Centre is getting ready for the wrecking ball, developers want to have one last chance of showing off their model suites and scale models that can sometimes cost in the millions of dollars to create. Once the Sales Centre is gone it becomes harder for a developer to sell their suites because they lose the visual that many buyers require.
Prior to closing down, developers want to get as many bodies through the doors as possible and often have some incredible offers. Because they have already secured financing for the building, they can be more flexible with their deposit structures and it is not uncommon to see some terrific 10% deposit deals for excellent projects.
The amazing DNA3 sales centre is closing down, and you can take advantage with some amazing offers!
The major caveat here is that many of the “choice suites” are potentially taken, however, with the help of the right professional you may find a hidden gem in there.
Some recent examples of the “Closing Down Milestone” offers include:
3018 Yonge – Purchase Suites with just 10% Down (NOW ON)
DNA3 – Purchase 2 Bedroom Suites with just 10% Down
FIVE Condos – Up to $25,000 cash back and purchase with 15% Down
ICE Condos – Free Locker, $30,000 discount on Parking, purchase with just 10% down
4) Occupancy
With the building almost ready to move into, the builder may have some left over inventory that they have not sold. For these remaining suites, they may offer big savings and very low deposit options. It is important to mention that when you purchase during this milestone that you are likely an end-user purchasing to live in the condominium. While you can purchase with “5% down”, you will be required to get a mortgage when the condominium registers and at this point, you will put down the remainder of the down payment for your mortgage.
When a building is complete, such as M5V, developers will offer some huge savings and excellent deposit structures!
Some recent examples of “Occupancy Milestone” offers include:
M5V – 5% down and Free Parking on Select Suites
Festival Tower – 5% down, 5% off purchase price
There you have it! An insiders tip on how to take advantage of various sales cycle milestones to get the best bang for your buck. Members of our Insiders Club often get notified of these special offers and is a great way to stay in the loop. To sign up for our Insiders Club, complete the form below!
