Buying a Condo – Resale Or Pre-Building?

In terms of buying a condominium unit, many of my buyer shoppers ask me which is the better selection, shopping for a resale or pre-building unit. The difference between the two being that one already physically exists and the other one does not. Deciding which route to take is dependent upon a number of factors akin to timeline, motive and capital.

When buying a resale apartment unit there aren’t any surprises; what you see is what you get. You recognize precisely what you’re moving into as you can physically visit the unit, see what finishes have been used, know how the management is running the building, etc. Usually talking, gadgets equivalent to window coverings, light fixtures and constructed-ins are left behind by the sellers which are a bonus. One other positive facet of shopping for resale is that a buyer is able to go to multiple models in different places earlier than making a decision to see which one finest suits their needs. The down side of resale is that you’re not the primary owner of the unit and a few prep work of the unit may be required earlier than move in.

However, when purchasing a pre-construction apartment unit, you might be essentially shopping for an idea and not a tangible merchandise because the condo doesn’t physically exist yet. Instead of visiting the unit, you go to the sales heart the place you purchase off of a flooring plan the place you will need to visualize the area you’re purchasing. The nice thing about shopping for pre-building is that you’re the primary owner and everything is model spanking new. By the point the builder has sold enough units to begin development and building has been accomplished, it isn’t until years later that you’re really able to move in. If you’re looking to move into a condominium unit instantly or within a short while period, then resale is the way to go however in case you are able to attend a number of years and have a flexible timeline then pre-development might just be what you are looking for.

The following thing to consider is motive. What is your reason for purchasing a apartment unit? Is it to reside in or to flip? When buying a resale rental unit, you can probably move in instantly whereas should you buy pre-development you should be affected person and versatile as the original occupancy date will almost definitely fluctuate. If it’s an funding that you just want to get into then pre-development might just earn you that additional cash you’re looking for. When buying pre-development, you purchase at at present’s market value so depending on the market scenario while you purchase versus while you sell determines whether you make a profit or loss.

Finally some of the essential elements of shopping for a rental unit is the associated fee and in case you can afford the financial obligation. In either state of affairs, a down fee have to be made. In resale, on average a 5% down cost is given as a deposit with the offer. Depending on what has been arranged with the bank, a further deposit is paid to the bank upon unit closing. This deposit amount can differ from 5% down to a hundred% down, in which case a mortgage would not be required. When you purchase a pre-building unit nevertheless this flexibility isn’t allowed. The builder has strict deadlines when deposits must be made. Often a deposit is made with the preliminary signing of the documents, another one upon closing after which a number of others in between which normally totals about 25% down.

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