Assignors can secure a property at a lower price and sell their contract to an interested buyer at a higher price. This is done by capitalising on market appreciation or favourable negotiations. Purchasing an assignment means buyers must secure a property by qualifying for a mortgage with any financial institution.

If your pre-construction condo was bought a few years ago when prices were more reasonable, and now that it is nearing completion and the price is higher, selling it at a higher price might make sense however rising Mortgage Interest has dampened realization of profits. Most Pre-construction condo owners should liquidate at current market value if they dont have deep pocket to carry the property through final closing and further.

Regardless of the method you choose, selling or assigning may be a good option since you won’t need to worry about closing. Land Transfer Tax is one of the taxes that you will save. These will be paid at closing by new buyers.

A sale as an assignment during the construction stage does not require the whole HST payment. This fee is paid by investors/buyers at the time of closing and occupancy. After that, investors can only get a refund on a portion of the HST once the property has been leased.

Additionally, you will not have to qualify for a mortgage. Moreover, assigning the property to another buyer won’t require you to pay interest or penalties. While the condo awaits the final closing date, there will be no interim occupancy payments.

As a bonus, when assigned, you will receive all of your deposits and any appreciation you earn.There is however an economic downturn now in the market and this is likely to last until 2024. In spite of this, it is prudent to evaluate your personal financial risks as well as the current market value.