Beyond the blueprint

What to expect when you're expecting a condo.

In 2000, the average price of a resale condo in Toronto was $292,300, with an average price per square foot of $185. In 2009, despite an economic downturn and a worldwide recession, those numbers had increased, with the average price reaching $324,000, and the average price per square foot increasing more than 90% to $352 per square foot (data courtesy of Urbanation). For many people, these prices represent a daunting obstacle to entering the world of home ownership. However, there is a less expensive solution for condominium buyers--buying from a plan.

When buying prior to a building's construction, the purchaser selects a unit based on a floor plan, without ever seeing the physical space. While not an ideal substitute for experiencing the constructed quality and layout, purchasing from a plan is excellent for those who can't afford resale prices and aren't in a rush to move (buying from a plan often involves long wait periods as the building is constructed and occupied).

Condominium projects typically launch at the lowest price per square foot, with continuous pricing increases as sales accumulate and construction begins. At the start of a project, lower prices compensate for a higher degree of risk. Purchasers are faced with many questions: Will the project be completed on time? Will the market experience a downturn during the waiting period? Will the final product be what was promised? Once construction is complete, the risk is much lower, since buyers can inspect the building

and the unit firsthand, experiencing the tangible reality of the space, instead of the intangible promise delivered during the marketing of the project.

While buying pre-construction presents a pricing opportunity, there are important points to consider before finalizing the purchase. By giving thought to these areas during the purchase decision, pre-construction condo buyers will hopefully experience a wrinkle-free move-in day, instead of becoming the owner of a 400-square-foot shoebox with a concrete pillar in the middle of the living room and a balcony that faces a concrete wall.

The first thing to consider when purchasing a condominium from a plan is the location of the unit within the building. Study the building plan and scale model. Know exactly where the suite is situated. Make an educated guess as to what will be seen out the window. Is there a building shading the balcony? Does the unit overlook a parking lot? Buyers should be especially cautious about neighbouring parking lots, as they are often slated for future development. This can be investigated with a phone call to the city's zoning information office, to check the zoning of the space, and to the planning department, to see if there are any current proposals with the city to build on that location. These steps won't guarantee that nothing will be built in the future, but they're a good step to learn the immediate plans for neighbouring sites.

Know the direction the unit faces, and make a realistic guess about how much sunlight it will get. I bought a unit, pre-construction, with a beautiful 200-plus-squarefoot terrace, only to find that it doesn't get any direct sunlight. Ever. Not even for a minute. It might as well be in the shadow of one of the Bay Street towers. Avoid my mistake. Know what's going to be above, below, beside and across from your unit. Unknowingly purchasing above the parking garage or beside the garbage room is going to be an ongoing source of frustration for anyone who dislikes noise or the smell of day-old garbage.

When buying from a plan, it's not only the location of the unit that purchasers must envision, but also the quality, space and finishes of the suite. In a sales centre, model suites give buyers an idea of what their unit will look like. Almost all the time, the model suite has been assembled by a team of interior design experts, using a clever combination of standard finishes, upgrade finishes and custom-built pieces. The trick is to know which items fall into which category. While the model may have hardwood floors throughout and stainless steel appliances, the standard unit may actually come with carpet in the bedrooms and plain old white appliances, so it pays to confirm with the sales person as to what is standard and what's been upgraded before making any decisions.

Model suites also typically have ceiling heights that are higher than an actual unit. Nine-foot ceilings don't have the same "wow" factor for buyers, so ceilings in a sales centre are often exaggerated. A foot or two in ceiling height can make all the difference in a small unit, making it feel like either a closet or a truly comfortable space, so confirm actual ceiling heights and then find a space at home or at work that matches that height and see how it feels.

Pre-construction, a buyer has no way of seeing or experiencing the building in a real sense. While scale models, representative illustrations and sales centre marketing materials are designed to help purchasers imagine the final product, it's prudent to give serious thought to every aspect of the constructed building, determining whether it's the right fit for a particular budget and lifestyle.

Put together a budget and determine what's affordable. Maintenance fees should be included in monthly budgets (fees vary from building to building, so ask what's included and what the fees are estimated to be, and then count on them to increase during the first year of occupancy, if not before). Deposit and payment schedules should also be noted. Typically, an immediate deposit of $2,000 is required, with the balance of 5% within 30 days, and then payments at set intervals, until an amount predetermined by the developer is reached within a given timeframe. For example, when I purchased my condo pre-construction for $300,000, I paid $2,000 at signing, the balance of 5% ($13,000) in 30 days, and another 5% ($15,000) in 180 days. That was the total required by my developer, but since my goal was to put 25% down, I wrote a clause into my agreement of purchase and sale, allowing me to pay an additional $45,000 (the remaining 15%), 90 days before taking possession. Not all schedules are a perfect fit for all purchasers; the key is to find a deposit schedule that fits within your budget.


Amenities should be also considered as they will affect fees and lifestyle. When I purchased my condo, I looked for a building without any amenities (no fitness centre, no party room, no concierge) because I didn't think I would use them. This helped keep my monthly fee relatively low, compared to full-service buildings with tons of amenity space. However, some buyers may want the convenience of a concierge, the availability of a meeting room or the use of a theatre area. It's a personal choice, and should be part of the purchase decision.

If the building is part of a larger community being built in phases, it's useful to know what sections will be completed for your occupancy. No one wants to move into a building, eager to use the fitness room, only to find out it's being built as part of the next phase, still three years away.

Buying a condo pre-construction can be scary. There are unknowns, but the best thing a buyer can do is ask a lot of questions, educate themselves as much as possible, have their condo documents reviewed by a lawyer and always remember that brand new condominiums have the benefit of a 10-day "cooling off" period, during which time a buyer can always change his mind.

(To check zoning or planning submissions for sites within the City of Toronto, call the zoning information office at 416-392-7522 or the planning department at 416-392-7501.)

For locations outside of Toronto, call the local City Hall and ask for the numbers for the zoning and planning offices.

(prepared by Daniela Andrews/National Post)