Pre-Cons Are Showing Major Cracks
The headlines don’t lie—another Mississauga developer just filed for creditor protection, and it’s not the first. If you’re trying to decide between Toronto pre-construction vs resale for investment, now’s the time to dig deeper.
A lot of investors still think pre-cons are the easy way to build wealth because that’s what worked in the past. But today’s market is very different, and so are the risks.
In this video, we break down how pre-construction compares to resale in Toronto right now—and why a resale purchase might actually give you a better return with less risk.
Understanding Pre-Construction: Then vs Now
Pre-construction condos used to offer a discount compared to resale because you were taking on more risk. That made sense.
But from 2015 to 2020, we saw crazy appreciation—so pre-con buyers got lucky. Even with no rental income, values shot up more than expected, and people made money.
Fast forward to today, and that formula doesn’t hold up anymore.
Condo appreciation has slowed
Rents aren’t growing fast enough to justify holding costs
You can’t Airbnb to boost returns
And developers are now pricing in a premium, not a discount
So when you compare Toronto pre-construction vs resale for investment, pre-cons just don’t offer the same upside anymore—while the risks have only grown.
The Risks of Pre-Construction in 2025
Let’s be clear: pre-cons today are riskier than ever. Here’s why:
Cost uncertainty: Developers are charging more to protect themselves—but they may still come back and ask buyers for more money if construction costs go up.
Completion risk: Some projects are getting cancelled or delayed after most units are sold because they no longer make financial sense to build.
Delays: Projects that were already slow before COVID are now facing even longer timelines.
Financing risk: New rules may require more down payment for investment properties by the time you close—and your budget may not be ready for that.
Bottom line: You’re locking into a deal that won’t pay off for years—if it even completes—and your returns are far from guaranteed.
Why Resale Makes More Sense Right Now
Now compare that to buying a resale condo or multiplex in Toronto for investment:
You start making rental income right away
You avoid the risk of cancelled or delayed projects
You know what you’re buying—and the numbers are easier to run
You can leverage it to refinance or scale faster
Even if prices aren’t skyrocketing, resale is predictable and gives you more control over your investment.
Real Talk: Toronto Pre-Construction vs Resale for Investment
Here’s a side-by-side to keep it simple:
| Investment Factor | Pre-Construction | Resale |
|---|---|---|
| Initial Returns | None until closing | Cash flow starts immediately |
| Price Certainty | Low | High |
| Completion Risk | High | None |
| Cost Control | None – builder in control | Full control |
| Financing Risk | High | Low |
| Long-Term ROI | Speculative | Steady and buildable |
If you’re choosing between Toronto pre-construction vs resale for investment, the math today favours resale. You’re investing in a real property that generates real income now—not betting on what a developer might build in 3–5 years.
How We Can Help
This might not be what you want to hear—especially if you’re excited about a new build. But the numbers don’t lie: pre-con returns are down, risks are up, and resale offers a more stable path to long-term wealth.
If you want help figuring out your next step, we’ve got you covered.
Whether you’re leaning toward resale or still curious about pre-cons, our team will walk you through what makes the most sense based on your goals. We’ll help you buy smart, and if you need it, we’ll support you with renovations, leasing, and property management too.
Want To Get Started With Real Estate Investing In Toronto?
We’d be happy to learn more about your situation and help you find the best investment opportunities for you.
