Getting early access to a fresh, new condominium project – with the best units at the best prices – is reason enough to buy. But most of the time, VIP opportunities also feature a number of pre-construction perks that are not offered outside of the VIP phase.
We take a look at some of the examples of additional perks you get when you buy a condominium unit during the VIP sales phase, plus a couple of factors to keep in mind when selecting which VIP to look at.
Potential VIP Incentives
1. Parking Spaces: Parking in Toronto is not just difficult, it’s super expensive. Getting a parking spot in a condominium can cost up to $65,000, which is quite a lot of money for anyone investing in an average downtown condo. Sometimes developers can include a parking space with the condominium as a “deal-maker” incentive for the buyer. This is not just a big savings, but automatically boosts the value of your condo because now you have a parking space (which is essentially a piece of real estate in its own right).
2. Storage Units: There is no such thing as enough space. The more space the better and storage units within condominiums provide the extra space that come in handy for seasonal items, luggage, bicycles and more. Like parking spots, storage units are sometimes added into the sale price as a bonus item for new condo buyers.
3. Upgraded Finishes: Some units in the VIP phase come with an upgraded selection of finishes, such as marble countertops, hardwood floors and more.
4. Appliances & Free Stuff: Sometimes, condominium developers will now offer substantial upgrades to these, including stainless steel kitchen appliances and more. Some builders even throw in freebies such as flat-screen TVs for the unit and other fancy gadgets. This usually only happens during a VIP phase of a property.
5. Capped Levies: There are certain levies that need to be paid (such as taxes for area infrastructure development – such as a new subway line close by) by the buyer. In a resale situation, these could soar up to $10,000+. In condominiums, especially during the VIP program, levies are usually capped at a fair amount with the remainder of these taxes being paid by the developer.
6. Partial Maintenance Fees Paid: Maintenance fees can be quite a significant part of your monthly expenses. During the VIP phase however, a developer may pay off some of those maintenance fees for a set period of time, accumulating to quite a bit of savings.
7. Gift Cards + Value Incentives: Sometimes gift cards or transit passes will be thrown in with the deal. May not sound like a lot, but imagine transit passes for a year? That’s free travel in the city – which could add up to well over $1000.
8. Larger Discount: A VIP opportunity may also provide a buyer with the opportunity to grab a larger discount. Everything is on the table for discussion and a larger discount is by no means, out of the question. So not only are you getting a better deal than everyone else, you may get a better deal than the better deal!
More Perks by Buying with TheRedPin.com
Buying a VIP project with TheRedPin.com gives you the opportunity to take advantage of our VIP Incentives:
- Access to all the best floor plans at the best prices
- Leasing of unit upon occupancy at no charge
- Free 1 hour consultation for picking finishes with our interior designer
- Pre delivery inspection by a qualified inspector
- Free window coverings for your new unit
- Special pricing for multiple unit purchases
Neighbourhood First – VIP Analysis 101
Before you jump to a VIP opportunity, a little due-diligence is in order. One of the biggest factors to consider when buying a VIP project is its neighbourhood. Without looking at the neighbourhood where it shall be located, you are pretty much buying blind!
Here are some factors to consider:
1. Gentrification of the neighborhood: Improvement within a lower-income neighbourhood is an indicator of “good things to come”. Investing in a condo in a neighbourhood like this is usually a good idea, considering that more businesses will move in as well (where you see a Starbucks…), more residents will be attracted to the area and over time, the value of your home will improve as well.
2. Future Happenings: a major event or festival can really change the dynamics of a neighbourhood, sometimes attracting business development. The Pan Am Games in Regent Park is a great example. The Games will invest millions of dollars in community revitalization while surrounding businesses and condominium developers will create the landscape to cater for that community and beyond. It’s important to see this as a sign of what future value your investment can hold.
3. Amenity Improvements: Community improvements are one thing but amenity improvements – such as transit upgrades – can lead to leverage. A good example is Union Station, currently undergoing major structural changes to accommodate more traffic. This will be beneficial for all the new residents who will enter the neighbourhood, especially those who will stay in the new condominiums lining front street and lake shore. Check out Harbour Plaza Residences, for example!
4. Other Projects: Is the neighbourhood a developing one, attracting many condominium builders? Will there be more buildings? A prime example is the Yonge and Eglinton neighbourhood which is currently seeing a lot of condo development. It is becoming its own version of downtown Toronto with all the necessary amenities and conveniences in one location. Other projects indicate growth and sustainability within the community. However, over saturation can also occur, which could reduce value. Something to carefully evaluate.
5. Current Amenities or Future Developments: Is there existing access to everyday needs and essentials? Will there be future developments that are important? These are some of the questions to think about when it comes to amenities. Shops, grocery stores, future transit lines, development of local restaurants and cafes, etc, all add to the living experience. It is therefore important to identify these before considering an investment.
6. Close to Workplaces: Being close to work is a major bonus for many people. Saves you on transit costs and what not. However, it is also beneficial if you are thinking about a future tenant. Buying a Bay Corridor condo will provide easy access to those working in the financial district, and thus make the condo quite appealing. Its important for you to consider this before making an investment because it could dictate future sources of income as well.
The key here is to envision the project once it is built because that is the environment you’re going to live in. It is important that major elements such as amenities, resources and community standards meet expectations and showcase either future development or consistency to make a particular project worth the dollar.