Purchasing a Condo - Resale Or even Pre-Construction?

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Purchasing a Condo - Resale Or even Pre-Construction?

When it comes to purchasing a condominium unit, many of my purchaser clients ask me that is the better choice, buying a resell or pre-construction unit. The main between the two being that 1 already physically exists and also the other one does not. Determining which route to take depends upon a few factors such as schedule, motive and capital.

Whenever purchasing a resale condo device there are no surprises; whatever you see is what you get. You understand exactly what you are getting into as possible physically visit the unit, notice what finishes have been utilized, know how the management is actually running the building, etc . In most cases, items such as window treatments, light fixtures and built-ins are left behind by the retailers which are a bonus. Another good aspect of buying resale is the fact that a buyer is able to check out multiple units in different areas before making a decision to see what type best suits their needs. The down side to this of resale is that you aren't the first owner of the product and some prep work from the unit may be required prior to move in. Clavon Price

On the other hand, when buying a pre-construction condo unit, you might be essentially buying an idea and never a tangible item since the condo doesn't physically can be found yet. Instead of visiting the model, you visit the sales middle where you purchase off of the floor plan where you must imagine the space you are purchasing. The great thing about buying pre-construction is that you are the first proprietor and everything is brand name spanking new. By the time the actual builder has sold sufficient units to start construction as well as construction has been completed, it isn't till years later that you are really able to move in. If you are looking to increase a condo unit immediately or even within a short time period, after that resale is the way to go but if you act like you are able to wait a few years and also have a flexible timeline then pre-construction may just be what you are looking for.

The next matter to consider is motive. What is the reason for buying a condo system? Is it to reside in or flip? When buying a reselling condo unit, you can possibly move in immediately whereas popular pre-construction you must be patient and versatile as the original occupancy day will most likely fluctuate. If it's a wise investment that you are looking to get into and then pre-construction may just earn you which extra cash you are looking for. When buying pre-construction, you buy at today's selling price so depending on the market scenario when you buy versus when you market determines whether you make the profit or loss.

Lastly one of the most important elements of purchasing a condo unit is the price and if you can afford the monetary obligation. In either circumstance, a down payment must be created. In resale, on average any 5% down payment is given like a deposit with the offer. Based on what has been arranged using the bank, a further deposit will be paid to the bank on unit closing. This down payment amount can vary from five per cent down to 100% down, in which particular case a mortgage would not be required. Upon purchasing a pre-construction unit nevertheless this flexibility is not permitted. The builder has stringent deadlines when deposits should be made. Usually a deposit is made from the initial signing of the files, another one upon closing after which a few others in between which often totals about 25% straight down.

A condo can be a great investment decision and a great place to reside whether you purchase resale or perhaps pre-construction. Choosing which path to take depends mostly on the urgency to move but also in your financial situation and your reason for purchasing. In either case take the time to determine that route makes the most is reasonable to you.

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