I hope you and your family are healthy and prosperous this year.

Many Canadian immigrants and families with international students have a strong interest in real estate investment for rental income or capital appreciation in Toronto. Additionally, many families seek to purchase or rent condos in close proximity to universities, especially in downtown Toronto and North York, as their children complete their university education.

For real estate investment and preparing for your child’s university admission, math, or future employment, I recommend considering pre-construction condo purchases in desirable locations 2-4 years in advance.

Typically, condos in this area are occupied 2-4 years after the pre-construction sale, with a down payment (5%) due at the time of contract signing or within one month after. The interim payment (5-15%) is usually made within one year after the contract, while the remaining balance (80-90%) can be financed through a mortgage (bank loan) or other preferred methods when moving in after 2-4 years. This means that the initial cash burden during the pre-construction sale is relatively low. Unlike in Korea, there is no continuous interim payment system until occupancy.

If your child is 18 years or older, you can register the property in their name, and in case of any changes in occupancy or rental plans when moving in 2-4 years later, you can sell to others (pre-sale rights) before registration, making the commitment less burdensome. Purchasing in your child’s name not only offers significant discounts on acquisition taxes but also exempts you from inheritance or gift taxes, making it highly advantageous. It also becomes relatively easy for parents to transfer the property to their child in the future.

Based on past experience, the period between pre-construction sale and occupancy tends to be long, resulting in significant investment gains upon occupancy. Investing 10-20% of the pre-construction price during this period can yield substantial capital appreciation.

Pre-sales are the most affordable and offer a wide range of options for specific real estate agencies or VIP agents. I highly recommend considering pre-sale purchases to secure the best floors and views. While in Korea, unsold units are sold at lower prices, here, unsold units from the initial pre-sale phase are sold at much higher prices at the sales office until the end of the pre-sale period (prices increase further once construction begins). If there are any remaining units during occupancy, they will be sold at the increased market price, resulting in capital appreciation.

Purchasing a condo in Toronto not only serves the purpose of your children’s university education and future employment but also offers a high-profit potential for real estate investment.

If you have available funds, I encourage you to invest in pre-construction condos with high investment potential instead of keeping your money in the bank. (This is based on the substantial investment returns of my customers, exceeding 100% over several years).

What may have been forgotten after the pre-sale can undoubtedly become a significant benefit for families in Canada, where living expenses are high and saving is challenging.