When is the Best Time to Buy a Pre-Construction Condo?

Question: When is the best time to buy a pre-construction condo?

Timing is vitally important when purchasing a pre-construction condominium. Typically speaking there are two “best times” to buy at a new condo project during the condominium sales life cycle.

1. At the Platinum Launch

Developers understand that there is the most opportunity for sales at the Platinum Launch. This is when the development has the most “hype” within the investment community and developers will offer the best prices, incentives and selection of suites.

2. Inventory Sale when the Developer is 60-70% sold

Developers are required to pre-sell approximately 75% before they get financing to develop. Sometimes a developer has sold (for example) 60% and are struggling to make up the last 15% of sales so that they can start construction.

At this time, a developer may do a special one day sale where they offer incredible incentives so that they can start construction and make the money back by increasing prices on the final batch of units once construction has already began.

These types of inventory sales are rare but they do happen. Many of the “top projects” will have no problem reaching 75% in sales, so these types of promotions may not happen at the AAA condo projects.  These types of sales are typically not advertised in the public but are advertised through Platinum Agents who have special access so it is important to be working with agents who have access to these types of promotions.

NOTE: It is important to remember that every condominium is different.  The above advice is based on typical pre-construction condominium cycles.