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Pre-Construction Or Resale Condos: Which is a Better Bet?

When it comes to buying a new home, one may ask, which is better: Pre-Construction or Resale? While both are profitable, Pre-Construction condos are safer and passive investments. Here are three reasons why buying a condo before construction is a better bet. You’ll save money in the long run and get more bang for your buck, too.

Pre-Construction condos are safer

There are a few reasons why buying a Pre-Construction condo is a better investment than a Resale condo. First of all, pre-construction condos are less expensive. This means that you’ll be able to maximize your return on investment if you ever plan to rent or sell it. In addition, pre-construction condos often fetch the lowest prices, which means that you’ll never have to worry about bidding wars. Second, your capital appreciation and price growth are higher, because the property is in a neighbourhood that’s growing.

Last but not least, pre-construction condos are priced for the future, and therefore, you’ll be paying for it when it’s finished. Because of this, they’ll always be higher than resale condos. However, in Toronto, the gap between pre-construction and resale condos has narrowed in recent years. That’s good news for prospective buyers who’ve been waiting for a new building to be completed.

They’re more lucrative

If you are in the market for a new condominium, you might be wondering why pre-construction condos are more profitable than resale condos. This is due to the fact that pre-construction condos are newer and thus, will have a higher market value once you decide to resell them. In addition, resale condos will have fewer problems with renting, as the unit’s value will increase until it is resold.

Buying a pre-construction condo has several advantages over resale condos. Aside from being brand new, a pre-construction condo will offer you a personalized space, a guaranteed return on your investment, and fewer expenses. If you’re worried about long-term returns or your job’s security, then you should stay away from buying a pre-construction condo.

They’re more passive

There are many benefits of buying a pre-construction condo. In the case of the latter, a down payment is not required at the time of purchase, and in some cases, a buyer can spread out the amount over the first year of ownership. This makes pre-construction condos attractive for first-time buyers or those who want to make an upgrade.

A buyer can make offers for any unit in the development, but there are certain risks associated with these offers. One such risk is that interest rates might go up after the property is completed. Another potential hazard is the closure of a major employer in the area, reducing the demand for condos in that area. Furthermore, delays in construction may result from logistics, labour strikes, environmental or anthropological issues. In short, a buyer has more time to consider a pre-construction condo before making a decision.

They’re Cheaper

In addition to being cheaper in terms of down payment, pre-construction condos are also easier to finance. Developers will require a 20% down payment spread out over 4 payments and the balance is due on delivery. This might be difficult to afford, but if you’re on a tight budget, you can take advantage of financing options offered by realtors specializing in pre-construction condos. Seeing the floor plan of the condominium before buying is a great way to visualize the space you’ll be living in.

Although pre-construction condos are typically cheaper than resale units, the price difference between them is negligible. As a buyer, you can take advantage of the lower down payment by buying an apartment in the early stages of a development and gradually pay off the remaining balance during the construction period. This is especially attractive for first-time buyers and those looking to upgrade their living space.

Author’s Bio

Afsara Tasnim is a content writer for BreezeMaxWeb, who helps businesses grow their online presence by creating engaging copy. She enjoys taking photographs of nature and exploring the outdoors during her spare time.

 

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