Pros and Cons to Buying a New vs. Resale Condo
There are significant differences between buying a new condominium and a previously owned (resale) unit. When deciding whether to purchase a new or resale condo, it is wise to consider the advantages and disadvantages of each.
Some Pros of Buying a New Condo:
- You can often get a lower purchase price (depending upon market conditions). Lower price points are often offered in the initial sales stages to get the project ‘up and running’.
- If you buy early enough, you can get a better selection of units and location within the building.
- You can get a broader range of upgrades (at agreed upon additional costs).
- Condo fees are generally lower compared to buildings that are 5+ years old.
- You’ll most likely get new home warranty protection.
Some Cons of Buying a New Condo:
- If show suites are not available, you cannot see what you are buying and must rely on sketches and floor plans.
- Your initial deposit will be tied up for the duration of construction.
- You will most likely end up paying GST, which is often built into the purchase price.
- Construction of your unit may be delayed from the original projected date.
- You may move into your unit while construction continues in others, which can be noisy, dusty, and disruptive.
Some Pros of Buying a Resale Condo:
- You get what you see, for the most part anyway.
- There are no lengthy waiting periods before you can move in unless already agreed upon in writing.
- Deposits are typically much lower for resale purchases.
- You can check out the community in advance to see how well the corporation is run, and if other owners/occupants are agreeable with your needs and lifestyle.
- Landscaping and grounds areas are complete and likely more mature.
Some Cons of Buying a Resale Condo:
- You have fewer unit options to choose from within the building.
- Older resale condominiums may require more maintenance and repair than new ones.
- The amenities that you may find desirable (for example, a workout room, whirlpool, security features) may not be available.
- Older resale units may not be as energy-efficient as newer units.
- Major repairs may be coming due that could require a special assessment to the unit owners if the reserve fund is underfunded.
Still not sure if condo ownership is right for you? Or are you planning to buy or sell a property? Contact us today! We’d be happy to answer all your questions, and when you’re ready, get to work for you!
Jason Rustand with RE/MAX Real Estate serves with the highest level of integrity and excellence every time. For more info on this topic or others related to real estate contact LIKE our Jason Rustand Team Facebook page, call Jason direct at 780.980.2828, email firstname.lastname@example.org or visit WeSellLeduc.com.
Referenced from https://www.cmhc-schl.gc.ca/en/buying/condominium-buyers-guide/chapter-4-buying-a-condominium