Buying a property is a big decision and, thus, requires quite a lot of brainstorming before you finalize on one. There are so many factors to consider, and one of the most crucial ones is to decide what type of condo to opt for. That is, should you be buying a pre-construction condo, or should you buy a condo in resale?
There are pros and cons to both options. So, the final answer is going to depend upon the weight you decide to give to each of the factors. To make it a little easier for you, we have broken down the various factors to be considered into categories and compared them for pre-construction condo units as well as resale ones. So, keep reading to learn about these factors and then make the right choice for yourself!
Which option is best?
To make it a little more organized, here’s a list of factors that you should consider while keeping in mind the Toronto housing market:
#1 Customization of the details
Here’s a clear comparison for you. When you purchase a pre-construction condo, you can choose from the multiple options available for you. That is, you can look into the type of flooring that you desire or the floorplan that suits you better. So, you get to choose each and every detail about the condo that you will be purchasing.
On the other hand, the resale one might have a little downside here. That is since it is not a new development; these essentials are already existing in some fashion. Also, there could be chances that the furnishings or flooring it has might be outdated now.
#2 Maintenance costs
Again, when you compare, pre-construction condos are going to be newly built. Therefore, you will be required to put in lesser capital for its maintenance. On the other hand, the initial investment in maintenance activities can go quite high in the case of the resale units.
This is simply because a resale condo might have specific repairs that need to be taken care of. Whereas, in the case of the pre-construction suites, the structure is in development or newly developed. So, there is no need for any repairs initially.
#3 The waiting time
Now, the investment that you are making is the deciding factor for which type you should go for. This is because the waiting time for a pre-construction unit is going to be higher. A pre-construction unit is usually bought at the time when it is not ready for occupancy.
Therefore, in case you wish to gain immediate ROI or are planning to shift in, then a resale condo would be a wise choice. However, if you are to invest for a long-term basis simply, you can go for a pre-construction condo.
#4 Fitting it in the budget
There is no hidden side to the fact that buying a condo means putting in a considerable amount of money into an investment. Therefore, you require a good bank balance to be able to afford a condo in a competitive market like Toronto’s. How much of it do you have ready? The down payment for a pre-construction condo is much lesser if we compare it with buying a resale condo. In the case of a pre-construction condo, you have to wait longer for its completion. This way, you get some time to save more and maintain a good balance.
#5 Profits involved
The profits involved in both cases are dependent on a few factors too. When you buy a pre-construction unit, you will be occupying it at a later point in the future. By the time it is fully ready, it is going to cost much higher. Thus, it means a more significant profit for you.
In the case of a resale, the situation is different. When you are buying the property, it has already reached a particular high in the market. Therefore, its rate further will be even lesser. If one looks at it the other way, the purchasing cost is also lower than the pre-construction condo. So, view this factor as it suits your best!
#6 The condo site
Talking about the condo site, it will matter how you like it better. The condo site might be a little under-developed if it is in the pre-construction stage. Also, on the premises itself, there might still be construction going on. So, it can get quite disturbing for some to handle unfinished construction.
However, it could also mean that the surroundings, as well as amenities that you get, are better in the newer developments. For resale ones, the advantage would be that you already have everything well-settled. Therefore, there is no prediction or point of trust in what is being promised in the future. You will be able to see for yourself what is the state of the condo’s surrounding.
Apart from the comparable factors between the two types of condo units available for purchase, there are a few other factors too. For instance, factors like location and developers of the condo that you are eyeing also make a difference. While there are a few who believe that resale would be an ideal option, there are many more in Toronto who believe that pre-construction condos are the best way to go! Hope this article assists you in making your decision right!
If you’re considering investing in a new condo, browse our now selling pre-con listings.