Dayle  Carmody

Dayle Carmody

Sales Representative

Ferrow Real Estate Inc.

Mobile:
416-737-7082
Office:
416-568-2092
Email Me

Pre-Construction Investing Guide

 

Pre-Construction Investing

Higher ROI & Diversify (or START) your Investing Portfolio.

 

Real Estate returns outperform almost every time.

*Compared to RRSP, stocks, mutual funds, bonds, etc.

 

Real Estate Return On Investment: good 10%, great 12%, excellent 15% ^

Gain equity on signing Agreement of Purchase and Sale (APS), gain equity while under construction, then two options:

 

  1. Rent Unit at Premium

Bought @ market value X # of years ago. Value appreciates during building years.

Record low rental inventory across the GTA. Making it easier to get top $ and A++ tenants.

 

  1. Assignment

Assign your rights to purchase a property. Sell your contract to a new buyer for an appreciated price at the current market value.

Can act as a safety net in the case that your financial situation changes or you got in over your head.

 

Assingment

  • Bought at current market value (2020) i.e. $500k ($100k deposit over 4 yrs)
  • Occupancy 2024:  appreciation predicted at around  10 % (low end = 5%)
  • Predicted Value in 2024 around $732,050.00 (low end= $607,753.00)

        ***Even at 5% ROI, a greater return than from  savings account ( 2.8%)         

Return On Investment

  1. $100k investment
  2. $42k (Solicitor, Sales Commission, HST,  Assignment fee, others fees & adjustments. )
  3. ROI 10% = 90.05% (before capital gains), around 45.03% after taxes; ROI 5%= 45.03% or 22.5% after taxes.

Are you a good candidate?

  1. You have 15-20% Down Payment.
  2. You can save enough between signing and occupancy to qualify for a mortgage. (If your plan is to assign, the builder will still require a pre-approval).
  3. You are willing to become a landlord or to assign it at or before occupancy.

 

      Example Deposit Structure Occupancy 2024

 

$500k

$750k

$1M

1% on signing

Balance to 5% in 30 days

$25k

$37.5k

$50k

5%  in 2021

$25k

$37.5k

$50k

5% in 2022

$25k

$37.5k

$50k

5% in 2023

$25k

$37.5k

$50k

Total Investment

$100k

$150k

$200k

ROI (before taxes)

$190,050

-$100,000=$90,050

90%

$286,075

-$150,000=$136,075

90%

$374,100

-$200,000= $174,100

87%

          ***Get in on PHASE 1- VIP/EXCLUSIVE BROKER pricing***

 

Featured Projects:

Condo: Nuvo, North Oak, 55 Bloor, 8 Wellesley, Oscar, 128 Hazelton, The One, 8188 Yonge

Townhomes:  Twelve Oaks, Lawrence Heights, Village Green, Wedgewood, Smart Towns Newmarket, The Summit Muskoka

Detached: Union Village, Copper Hills Estates, Victory Green, Sterling Estates, Shoreline

 

And hundreds more being added daily!

Serving Prince Edward County to Toronto & its suburbs, to Niagara to The Muskokas & Kawarthas.                                          

 

                      

  DayleCarmody@TracePropertyGroup.com

    www.DayleCarmody.com

       416-737-7082

 

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