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NEW OR USED?  THAT DEPENDS.

There are really 3 categories of condos available right now:

  1. Brand new pre-construction condos being sold now for future delivery in a year or two or three. Generally, these represent good value, as the builder needs to sell 60% or 70% of the suites in a building to proceed with construction, so most builders price the pre-construction suites in a building as low as possible to achieve the required sales.
  2. Brand new suites in recently completed buildings where the majority of suites were sold during the pre-construction phase. Don’t expect these to be bargain suites: you may, in fact, pay a premium for the privilege of buying a brand new suite that has never been lived in, but that you don’t have to wait for.
  3. Resale.

Each has its pro and cons.
Here’s a short overview of each.

 

BRAND NEW PRE-CONSTRUCTION CONDOS.
PROS:
You get more time to save up your down payment, so your mortgage will be lower.
You get to pick your finishes and colours and add any upgrades you might want from an available list.
You get more planning time in terms of making the move, acquiring furniture, and getting your finances and your life in order.
CONS:
You have to wait to move in.

 

NEW READY NOW.
PROS:
What you see is what you get: you can see, touch and feel exactly what you’re buying. No surprises.
You can move into your new home right away, in as little as 30 days, usually no more than 60 to 90 days.
CONS:
What you see is what you get: all the choices have been made for you.
You have to be ready immediately to move forward, have all your finances in order and be able to sell your present home or vacate your rental home within the time frame required.

RESALES.
PROS:
A resale suite is likely to be in an established neighbourhood.
If the suite is tired or outdated, with old cabinets and appliances and dated tile and decorating, you may be able to buy it at a bargain price.
You can see for yourself who your neighbours are and whether it is a neighbourhood where you’ll feel at home.
CONS:
If the suite has not been updated in a long time, it may require extensive (and expensive!) renovating and improvements, which have to be paid for in cash.
The building’s structural and mechanical systems may need updating and repair, which may increase maintenance fees down the road (that’s why it’s so important when buying a resale to ask for the reserve fund study, check the reserve fund and study any maintenance fee projections.)

Each of these 3 options has its own benefits: only you can determine which one best suits your needs.

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