Buying a Pre Construction Condo vs Resale
Whether you should consider buying a pre construction condo or go down the resale route depends on several factors. There are however, quite a few reasons why someone might choose pre-construction over resale.
We’re here to help you make the best decision for your situation so we created a short list of some the advantages of buying pre construction.
Cheaper than resale
Buying a pre construction condo means that the price you’re paying will likely be cheaper than a resale condo. This is mainly due to getting a fixed sale price before the condo is built. Essentially, as a result of a number of factors including time and inflation, the price you’re paying is typically less than that of a new condo once construction is complete.
Many investors also benefit from using their pre construction unit as a rental property. Therefore, their mortgage payments are covered by tenants while the property appreciates in value.
Extended deposit structure
Another advantage of buying a pre construction condo is the lessened financial pressure because of the deposit payments are made over a long period of time. Having more time to produce cash for these payments gives buyers an opportunity to break into the real estate market they otherwise wouldn’t have had. Deposit structures are typically 20% over an 18 month horizon and a mortgage approval is only needed at the time of closing.
Property appreciation
Pre construction can be viewed as an investment as the value typically appreciates after the construction phase depending on the development’s quality and location.
Buying a pre construction condo is considered to be a sound investment, and can be an advantageous opportunity when locking in today’s pricing and look to capital appreciation as the property and surrounding area matures.
They’re new
When buying a pre construction condo, you get access to the newest buildings with modern decor, trending designs, cutting edge amenities with a floor plan of your choice. Often developers let buyers choose their own flooring and fixtures to give their new condo a personalized touch. For investors, this can be a big bonus because you can charge a premium price for your unit being newly built.
Buying into a condo also offers lower maintenance and less hassle when compared to the upkeep of a detached home, as monthly maintenance fees cover the condos’ repairs and preservation.
Looking to invest?
Looking to invest in pre-construction? Start browsing through projects on Haüskey’s Assignment Marketplace and speak to one of our experienced agents.