Finding a New Condo in Toronto: Pre-Construction or Resale?
Written by: Erica Mary Smith
Posted on: March 24, 2016
When people are looking at condos for sale in Toronto, one of the first questions they have to ask themselves is “pre-construction or resale?” Toronto condos are being built at incredible rates. There are more condos in Toronto than ever before, and more for condo buyers to choose from. People looking for a condo can choose between a resale, or they can commit to purchasing a pre-construction condo that is being planned for development. Both pre-constructions condos and resale condos have their advantages, as well as disadvantages. By considering your options, you can determine which is right for you.
Pre-Construction Condos vs. Resale
There are some major benefits to each of these choices when looking for a condo.
With resale condos, there are some very clear advantages for buyers. The biggest advantage when purchasing a resale condo is that you get to move in right away. There is no wait—once you close on your condo, you can immediately make it your home. As well, you get to see exactly what you’re getting during the buying process. With a resale condo, you can make decisions based off of first-hand experience instead of floor plans. For people on tight budgets, it’s also a lot easier to determine resale condo mortgage payments.
However, resale condos also have their downsides. Often, buyers can end up paying more for a resale condo than they would for a pre-construction unit. Resale condos will be sold at market rate, and it is not uncommon for buyers to end up in bidding wars. As well, after purchasing a resale condo, you may have to spend money on renovations. Depending on how long the condo has been around for, it may require pricey repairs or upgrades.
With a pre-construction condo, buyers do not have to worry about renovations. They are getting a brand new unit in an entirely new development. With pre-construction condos, there are often opportunities to customize the condo unit to your liking, choosing options for flooring and appliances. However, one of the biggest benefits of pre-construction condos is that buyers can often get them for cheaper rates. Pre-construction condos are usually offered for much more affordable rates than resales, and buyers have more opportunity to save up the money for their purchase.
However, the reason pre-construction condos are offered for less is because many developments end up falling through and are not built. Some condos, even when built, will differ from their floor plans. The entire buying process for pre-construction condos can also be more difficult to navigate. You can only base your decision off floor plans, there can be additional fees involved, and buyers can end up paying “phantom rent” for a period of time. All of these complexities are why people buying pre-construction condos need a Toronto realtor.
Advantages of Finding New Condo in Toronto with Realtor
While both condo options have their drawbacks, using a Toronto realtor can help protect a buyer’s best interests. When you’re looking for a condo, your realtor will work with you to determine what type of condo works best for you. Depending on your budget and priorities, one type of condo may be a better choice to pursue.
As well, a good realtor will help you avoid the pitfalls of both resale and pre-construction condos. With resale condos, realtors can help determine whether renovations would be necessary, as well as if they work with your budget. For pre-construction condos, realtors can help you navigate the purchasing process, understand what fees you may pay, and ensure you get a unit that can be expected to be built in a timely manner.
Condo Chicks from Stomp Realty Inc. is a dedicated team of realtors who are behind some of the most prestigious and prominent condominium sales in the Greater Toronto Area. We take pride in negotiating on your behalf to represent your best interest. For more information, please call us at (416) 366-3033.