Deep into a second year of the pandemic, I connected with six industry game changers for their advice to those considering purchasing a pre-construction home or condo in the next year. You can find these folks in our 2021 Builders' Annual. Elliott Taube of International Home Marketing Group Realty Inc. is, like our other industry all-stars, always on the go. We caught him in his vehicle on his way to a new site north of city for this quick interview.

Elliott Taube advises that homebuyers keep one key component in mind when shopping for a new property – the cost today will be less than the value of the home when you go to close. In the case of a lowrise home, you’ll be getting the keys at least one to two years from the date of purchase.

There’s an appreciation that’s already happening before you even close; home costs have grown exponentially over the last two decades.

When comparing the cost of a resale property to a new home, consider cost appreciation. For example, it’s very expensive to build infrastructure in place for lowrise developments, whereas highrise is preferable for municipalities, since it’s less costly.

The increase in value has historically been proven in the numbers, which have steadily been on the upswing for the last 20 years.

In the case of a condo purchase, the number of years of potential appreciation increases, stretching out over the four to five years, or sometimes more, that it will take to build the project.

This is a key reason people buy new, and something prospective buyers should keep in mind. In addition, you’ll also have a chance to save for more of a down payment over this period of time.

Interest rates, while currently very favourable, can’t stay this low forever. As a homebuyer, make sure you do the math to ensure you’re still able to afford the carrying costs of a home if interest rates rise a point or two.

If you’re an investor, higher interest rates are concerning, but may not be as impactful. But regardless of the type of buyer you are, if you’ve done your research, a small increase in interest rates shouldn’t have a significant impact.

A new home and condo will have higher upfront cost, but with that comes a certain level of guarantee that everything in the home is also new and will incur little or no cost to maintain for a few years. These homes also come with protection from Tarion Warranty Corp., which enforces the Ontario New Home Warranties Plan Act and Regulations.