​Canada’s Definitive Guide to Pre-Construction Investing

Deposits are upfront payments made to secure a rental or purchase agreement, ensuring the property is held for the tenant or buyer. Rebates refer the return of a portion of costs, often used as incentives to encourage transactions or reward loyalty. Closing costs encompass various fees incurred during the finalization of a real estate transaction, including appraisal, title insurance, and attorney fees. Occupancy fees are charges applied the right to occupy a property, typically assessed on a daily or monthly basis, and can vary based on the terms of the or sale agreement.​

When evaluating a pre-construction project, three key factors guide smart decisions: location growth, developer track record, and presale absorption strength. Location growth reflects the long-term value of the area—future infrastructure, transit, and community development can drive appreciation. A developer’s track record shows their ability to deliver on time and at quality, reducing your risk. Presale absorption strength—how quickly units sell—signals both market demand and lender confidence, since projects typically require ~70% presales before construction financing is secured. Together, these metrics reveal the true strength of an opportunity.

Evaluating pre-construction means weighing future equity against current market realities. By locking in today’s price, you capture appreciation during the build, often outpacing resale gains. At the same time, comparing projected values to resale benchmarks and rental market trends helps determine if the opportunity

delivers stronger long-term growth, reliable cash flow, or both.​​​​