What is Pre-Construction Down Payment?

What is Pre-Construction Down Payment?

When we decide to purchase the investment property we first decide if we will buy a new condo means a pre- construction or we will buy a resale one which will close sooner than the pre-construction condo. And the major difference is the down payment. And that is something to consider when we are investing as that might change a lot of things.

One of the main differences when purchasing a pre-construction condo versus a resale condo, is the way it is financed.

One of the main differences when purchasing a pre-construction condo versus a resale condo, is the way it is financed. On a resale condo, you can put down as little as 5% towards the purchase price. On a pre-construction condominium, however, you are often required to have at least a 10%- 20% down payment.

That amount may seem high but the full payment is broken up into smaller installments, made in what is usually referred to as the deposit structure.

Here is an example of a typical deposit structure:

  • $5,000 with the offer

  • Balance of 5% in 30 days

  • 5% in 90 days

  • 5% in 180 days

  • 5% at occupancy

Deposits are generally required to be higher in the beginning of a project, as the bank that is financing the building will have this set out as a requirement. Closer to the completion of the condo, deposit structures become more negotiable, and by simply discussing the fee structure with the builder, you may be able to extend or even reduce your payments or ask for a better deposit structure.

12 Comments

  1. The Cyprus Turkish Soccer Association (Turkish: Kıbrıs Türk Futbol Federasyonu,
    KTFF) is the governing body of football in the Turkish Republic of Northern Cyprus.
    Set up on 29 October 1955, during English colonial guideline in Cyprus, it had been connected
    with the In.F.-Table from 2003 until the board’s
    dissolution on 2013. Since 2013 the KTFF possesses long been affiliated with the Confederation of Independent Basketball Groups.

    Birinci Lig is the top division of the TRNC Football Federation.
    PRESIDENT KTFF of is definitely Hasan SERTOĞLU.

  2. The app helps you download everything: IGTV video clips,
    stories, images, reels, and highlights. So, if you actually need to see or view articles offline all you
    need to perform is certainly introduce the app. Just backup the website link of the
    Instagram data you wish to save and available the app.
    Next, voila, you’re exceptional to head out!
    On the other palm, you can similarly just choose to the
    Instagram app and select “share to.” After
    that, available the Account Saver app to download the information you desire.

    On the other hand, like a lot of totally free apps in this list, the app’s littered with ads.

    We can all concur that countless individuals today are
    usually on their sensible phones the bulk of the time. Nevertheless, some folks favor the very good old-fashioned way to browse the internet:
    through a browser on a pc. If that’s you, in that case you
    might wish to understand how to find Instagram stories anonymously through a internet
    browser

  3. Thanks for your blog, nice to read. Do not stop.

  4. I in reality enjoy the blog article. Much obliged.

  5. Appreciate you sharing, great blog post. Great.

  6. Respected casino https://biamo.bet/ that pays. Prompt payouts, pay any way you want. Many different online games, slots. Huge selection of sports betting, online streaming, work all over the world. Click and win with us

  7. Good ranking of https://1pro-affiliate-programs.com/ casino and sports betting affiliate programs, Super affiliate programs only with us, review, rating

  8. Great online game https://LegacyofDead-spin.com/ where you can make money, buy yourself a new phone or a car, close the mortgage on your apartment and only one month, quick to register and win.

  9. Good ranking of https://bossaffiliate24.com/ casino and sports betting affiliate programs, Super affiliate programs only with us, review, rating

  10. Great online game slot gates of olympus where you can make money, buy yourself a new phone or a car, close the mortgage on your apartment and only one month, quick to register and win.

  11. Great online game https://razorsharkplay.com/ where you can make money, buy yourself a new phone or a car, close the mortgage on your apartment and only one month, quick to register and win.

  12. Inimitable https://biamopartners.com/. fast payments, work around the world. Fast tech support, help in setting up work. Join now

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

Coming Soon


Shining Hill Townhomes by Regal Crest Homes in Aurora

All

TBD

Aurora    ||     Register Now

At Yonge & St. John’s Sideroad in Aurora, Regal Crest Homes has built the new townhome community known as Shining Hill Homes. Welcome to a location with a little more brightness in the sun. where exquisite living and lasting value are created by using exceptional building materials and careful attention to detail. This is Shining […]

Trailshead Townhouse by Eden Oak in The Blue Mountains

TBD

The Blue Mountains    ||     Register Now

Trailshead is a new townhouse and single family home development by Eden Oak currently in preconstruction at Ontario 26, The Blue Mountains. Trailshead has a total of 194 units. REASONS TO BUY 1. Georgian Bay – Freshwater beaches and beautiful Georgian Bay are located within walking distance of Trailshead Towns. Residents can enjoy a day […]

Compare