When you’re shopping for a pre-construction condo, there are some obvious questions to ask. Questions such as; how much, what amenities, is parking included, is parking titled, when will the building be finished?
But what about those questions that you might not think to ask? Our Sales Associate Stephanie has come up with a handy list of questions you should be asking when you’re shopping for a pre-construction condo.
1) Do I need a mortgage pre-approval right now?
2) Does my mortgage start right away?
3) How much do I need to put down for a deposit?
4) What’s the difference between a deposit and a downpayment?
5) Does my deposit go towards my total purchase price?
6) Is my deposit protected? What happens to it if the building doesn’t get built?
7) What do condo fees cover, and how much are they?
8) Is there warranty?
9) Is there a competition?
10) Is the building pet-friendly?
Now, we can’t speak for every developer, but if you’re looking for answers about NUDE, keep on reading!
1) Do I need a mortgage pre-approval right now? No. We don’t require pre-approval as we’re pre-construction, but it might be sensible to get a general idea of what you might qualify for, and you can do this easily with a pre-qualification.
2) Does my mortgage start right away? Nope! Your mortgage won’t start until the building is complete, and you have title for your unit. Which is great news as it allows you extra time to save more for your down payment bringing down the amount of your mortgage and even your CMHC fees.
3) How much do I need to put down for a deposit? At NUDE, we require that you put down 5% at signing and then a further 5% in the first quarter of 2020. We do, however, have flexible deposit structures, including a bond program, which can be a real help to first-time buyers.
4) What’s the difference between a deposit and a downpayment? Although the two are used interchangeably sometimes, a deposit and a downpayment are two separate things. A deposit is the money you submit during the offer process to secure your property. A downpayment is any other money you personally pay towards your condo to be eligible for financing.
5) Does my deposit go towards my total purchase price? Yes absolutely. When you close on your condo, the deposit is combined with the money you have personally paid toward a downpayment. Then, the rest of the purchase price is typically covered by a mortgage.
6) Is my deposit protected? What happens to it if the building doesn’t get built? All buyers are protected under the Condo Act of Alberta. Plus, all deposits are held in a trust with a law firm and are insured. So, yes, you are protected in the unlikely case of the building not being built, and you will get your deposit back.
7) What do condo fees cover, and how much are they? Condo fees at NUDE are 0.50 cents per square foot, and they cover things such as; water, heat, AC, natural gas, building maintenance, property management, and general insurance. And a portion goes towards a reserve fund as well. You can learn more about the ins and outs of Condo Fees here.
8) Is there warranty? In all our buildings, we have a 1, 2, 5, and 10-year warranty program. All general workmanship, for example, cabinets, flooring, drywall, etc. are covered for the first year. Plumbing, heating, and electrical are covered for 2 years; the seal of the building is covered for 5 years, and the overall structure of the buildings is covered for 10 years.
9) How much will my property increase in value? We don’t have a crystal ball, so it’s hard to know for sure, but if no other buildings are being built in the same area, then market trends tend to show that there will be demand in the future. And just FYI, NUDE is the only building delivering condos in the Beltline in 2022.
10) Is the building pet-friendly? Pet-friendly buildings can make or break a decision for some people. NUDE welcomes everyone, including furry family members; it will even have a pet washing station on the main floor. Plus, our polished concrete floors are a great bonus feature because they are easy to clean and maintain even if you have a Great Dane as a roommate.
If you have more questions about NUDE, then why not get in touch? You can register here, or you can send us an email on firstname.lastname@example.org.