RESALE OR PRE-CONSTRUCTION CONDO – THE BETTER CHOICE

If you are reading this, it’s obvious that you are looking at investing in a condominium.
And if you prefer the luxury of a community and don’t really like shoveling the snow or mowing the lawn, a condo may be the right choice for you. A monthly maintenance fee assures you of fewer responsibilities and lets you access a variety of on-site amenities, including security features. Today, condos are available across a wide price range and can vary depending on location, amenities, the reputation of the builder and such.

Let’s find out which is a better deal for you – a resale condo or a pre-construction condo?

Resale condos
Unites that have been previously occupied and are now in the market constitute the “resale condominiums” market. If you are looking to buy a small home for investment purposes, a resale condo in a suitable location is always a good option. These properties offer the opportunity to quickly move in or rent it, with an immediate return on investment.

Plus, flipping a resale condo is easy as you don’t need any permission from the builder. With a resale unit, you also have the advantage of seeing exactly what you are paying for, the exact space you will have, the dimensions and layout and a good idea of the common amenities. The waiting period before you can move in, is relatively short. Plus, you have the added advantage of checking out the condo community.

On the flip side, you may need to start paying the condominium’s maintenance fees as soon as the deal is closed. You may also need to be ready for emergencies like sudden repairs, renewals or other unforeseen expenses. Also, resale units are available only in older properties, so a building-wide inspection, to determine the condition of the building may be necessary.

Pre-construction condos
The term “pre-construction condominiums” refers to developments that are under construction, in the planning stage or recently completed. They are traditionally purchased from a developer. Often they have a waiting period of 2 to 4 years before possession. When you invest in a pre-construction condo, you get enough time to get your funds in order.

Some other advantages are as follows:
1: A pre-construction condo gives you the opportunity to enter the property market at lower prices. Many builders allow the down payment (20% of the stated condo price) to be paid in smaller installments of 2.5 to 5% each, spread over a period of two to four years.

2: There are no maintenance charges, mortgages, or property taxes to be paid until the completion of the project. Being the first owner, you can customize the interiors of your property, such as appliances, furniture, and floor plans.

So which one is ideal for you?
The real estate market is constantly changing, and as an investor, you may have your unique needs. There is no simple answer to the ‘which one is ideal for you’ question. There are many choices you will have to make besides the budget when buying a condo.

You can definitely opt for a resale condo, if you have enough money for the entire down payment. But if you prefer lower costs and are willing to wait, you can opt for a pre-construction property. Here, you can make the down-payment in multiple installments over a period of years.

You could be an investor or a potential home buyer or an investor. Either way, the
advantage of a pre-construction condo over a resale condo is that it assures you an individual home and a guaranteed return on investment. For real estate investors, a pre-construction condo can be an excellent investment as a second property or one that can be rented out. With a pre-construction condo, you get extra time to save money for the initial deposit. This isn’t typically due all at one time, and often these properties tend to be cheaper than resale condos.

Is buying a pre-construction condo right for you?
Before buying a pre-construction condo, do your research and make sure that the builder is reputable. Learn how the pre-construction market works. Some great incentives to buying a pre-construction condo include guaranteed rates, capped closing costs, free unit upgrades, and more.

If you’re looking for a convenient, comfortable, and residence you can call home, condominiums are a great choice. To learn more about various Condominium options across the GTA, and preferred rates and 1st access to many premium properties, get in touch with us today.