If you’re in the market to buy your first Toronto condo, you may be confused about what makes the best investment — pre-construction condos or resale condos? While both options offer different benefits, one of these options will definitely be better for you than the other, depending on your circumstances and preferences. Before you make the decision that could change your life and financial situation, read this comparison of pre-construction condos vs resale condos to find out which is right for you.
Reasons to consider buying pre-construction
When you buy pre-construction, you are putting down money on something that doesn’t exist yet. You are investing in the future of your home and what it will be worth when it is complete. Some people worry about buying something before it’s finished because they’re not sure if they’ll like the design or not. The best way to avoid this problem is to get involved in the process and be an active part of creating your dream home. There are lots of opportunities for input with each phase of the building process so you can make sure that every inch of your new condo reflects exactly what you want. If you don’t know where to start, contact a reputable builder who can help guide you through the processHere’s why you should consider buying pre-construction condos:
You can earn more profit by selling pre-construction condo:
Pre-construction condos typically sell at a higher price point than resale condos do. You may also have access to the pre-sale price which means that you may be able to sell your condo at a higher price than someone who buys their home at market value.
You can customize it to your taste:
One of the great things about purchasing pre-construction is that you have time to think about all of your options without feeling pressured to decide right away. It can take years from when construction starts until a unit is completed, giving you plenty of time to make changes as you go along. That said, there are some things that need to be finalized sooner rather than later. For instance, architectural decisions should ideally happen early on and exterior color choices should happen in the second phase of development.
You get to live in your condo before it’s ready for market:
If you’re planning on moving out of your current home and into your new pre-construction condo, there’s no better time to do it than during construction. You will be living in one place while making major renovations to another. In effect, you’ll have two places for almost no additional cost.
You can purchase it at lower prices than resale condos:
When you buy pre-construction, you will be buying your home before its value has had time to increase. This means that you get to reap the rewards of increased property values while they’re still low.
Reasons to consider buying resale condos
With resale condos, you have the ability to see what you are investing in and the opportunity to negotiate with the seller on things like price and closing costs. With pre-construction condos, there is no guarantee that you will be able to find out all of the information about the building before making your decision.Here’s why you should consider buying resale condos:
You are already aware of the market value of the neighbourhood:
If you purchase resale, it’s easier for you to ensure that your condo isn’t priced too high or too low for the area. If prices drop in the future and the market changes dramatically, it would be wise to sell your resale property rather than put yourself at risk by waiting for construction completion. As a buyer of pre-construction condos, this is not something you can do if construction does not go as planned or if prices drop dramatically after construction has been completed.
Resale Condos have lower risk:
Resale condos also have less risk attached to them. Even if there are delays during construction, you’ll likely be able to move into your new home in a shorter amount of time than it would take to complete a pre-construction condo project. If something unexpected happens during your purchase of resale property and you end up purchasing from another seller, you can often cancel your purchase agreement without losing any money.
Many resale condos are more affordable than pre-construction condos:
Pre-construction condos tend to be less affordable than resale condos. When it comes to buying resale properties, you’ll need cash on hand or a good mortgage broker to help you get approved. As such, financing your purchase will be significantly easier if you buy pre-construction rather than buying resold property.
What makes sense for you: Pre-construction vs Resale Condos
If you are considering purchasing a condo, it can be difficult to know whether to purchase the pre-construction condo or the resale. There are many factors to consider before making your decision, such as when you need it and how much you have for a down payment. But here are some of the major differences between pre-construction condos and resale condos that could help you decide which one is better for you. First, the construction timeline for pre-construction condos is shorter than with resale homes. Second, the price for a new pre-construction condo will typically be lower than if you were to buy from an existing home on the market. Third, if interest rates go up in between signing a contract and closing on your home – both types of buyers may get hit with higher monthly payments. However, if you’re buying a resale home and prices start to drop, your monthly payment might decrease. Fourth, taxes are typically less expensive with pre-construction condos because they don’t yet have any wear and tear like older homes do.
Both pre-construction condos and resale condos are excellent investment opportunities. However, If you’re looking for more stability in your investment and are willing to wait out the construction process before getting your hands on it, then pre-construction condos are more up your alley.