The pros and cons of purchasing a pre-construction condo
After the real estate decline due to the Coronavirus pandemic, the Canadian condominium market is experiencing an exceptional turnaround recently. If you’re thinking about purchasing a condo, you may be considering a pre-construction unit. Buying a pre-construction condo can have some advantages over purchasing a resale unit, but there are also some risks to be aware of. In this blog post, we’ll give you an overview of what a pre-construction condo is and some things to keep in mind if you’re considering this type of purchase.
What Is a Pre-Construction Condo?
Basically, a pre-construction condo is a unit that is not yet built. When you purchase a pre-construction condo, you are buying the unit before it is constructed. This type of purchase is different from purchasing a resale unit, which is a unit that has already been built and is being sold by the current owner.
Before you purchase a pre-construction condo, it’s important to do your research and be aware of the risks involved. Make sure you understand the contract and what you’re agreeing to, and be
Benefits of Buying a Pre-Construction Condo
Pre-construction condos can offer a number of advantages and benefits over purchasing an existing home or condo. Here are some of the key benefits to keep in mind:
- Pre-construction condos can often be purchased at a discount to the future market value. This is because developers typically price their units at a pre-construction discount in order to generate interest and sales.
- Pre-construction condos offer the opportunity to customize your unit. This means you can choose your own finishes, fixtures, and appliances.
- Pre-construction condos are brand new. This means you don’t have to worry about hidden damage or repairs that may be needed with an older unit.
- Pre-construction condos come with added amenities that you may not find in an existing condo building. These can include various things like swimming pools, fitness centers, and concierge services.
- Pre-construction condos offer the chance to live in a brand new building in a brand new community. This can be a great opportunity to be one of the first residents in an up-and-coming neighbourhood.
Risks of Buying a Pre-Construction Condo
If you’re considering buying a pre-construction condo, there are a few things you should keep in mind. While there can be some great benefits to purchasing a condo before it’s built, there are also some risks you should be aware of.
One of the biggest risks of buying a pre-construction condo is that the project may never actually be completed. This can happen for a number of reasons, from the developers running into financial problems to issues with construction delays. If the project is never completed, you could be left without a place to live and out of pocket for any deposits or pre-paid fees.
Another risk to keep in mind is that the final product may not match up to the renderings or plans that you saw when you purchased your unit. This could be disappointing and cause problems if you were counting on certain features or amenities that don’t end up being included.
Lastly, pre-construction condos can be more expensive than purchasing an existing unit. This is because you’re paying for the potential of the space rather than the actual finished product. If you’re not careful, you could end up overpaying for your unit and having a hard time selling it down the line.
If you’re considering buying a pre-construction condo, make sure you do your research and understand the risks involved. With a little bit of planning, you can avoid some of the potential pitfalls and end up with a great place to call home.
Conclusion
It’s important to remember that buying a pre-construction condo is a bit of a gamble. There’s always a risk that the project will be delayed or that the final product won’t meet your expectations. It’s important to have realistic expectations and to be prepared for the possibility that things might not go as planned. By following these tips, you can increase your chances of having a positive experience when buying a pre-construction condo.
If you’re on the market for presale condos, you’ll need help from a licensed and reliable real estate agent. This is where Roger Rampuri can be of assistance to you. He and his team can help you find the best piece of real estate that suits your needs, budgets, and preferences. Give him a call today and let an award-winning realtor help you find the perfect property for you.
