New construction condos – is this still a good investment?

When Toronto condo prices were rising, buying new construction was a no-brainer investment. By the time the condos were built, the prices were up, and buyers were able to flip at a profit. User buyers who actually were buying condos to live in them, were not worried about when and if they would be built. Then came the pandemic. Materials were in short supply and cost of building soared. Condos became less popular. Prices dropped. Now we have inflation and the cost of carrying is substantially higher with high-interest rates.

We are seeing condos take substantially longer to be built – years longer. The cost of building has forced builders to raise prices. Buildings that were pre-sold and never built are now asking buyers for more money to pay for increased costs. All in all buying new construction could be a bit risky and frustrating at this time.