So, you’re looking to buy a condo apartment? But should you choose a new condo or a resale condo? It’s a good question and there isn’t a correct answer: what’s good for some may not be for others.
To help you decide which type of condo to buy, we’ve put together a list of the five best reasons to buy a resale condo.
Five reasons to buy a resale condo
Prices for new condo units are generally fixed by the developer and, while there may be generous incentives offered, there is little wriggle room when it comes to price. With a resale condo, it is completely different. The negotiation is between your agent and the seller and there is usually room to compromise on price, particularly if there are other benefits with your offer (for example, the ability to close quickly or a larger security deposit). If you have a good Realtor working for you, you can ensure you know how to approach the negotiations with the Seller and that the condo you’re looking to buy is at a price that is at fair market value.
2. You take possession straight away
A new condo can take years to complete so is likely not appropriate if you want to move into the unit straight away. In contrast, when you buy a resale condo, it only takes as long as it does for the deal to close, which is around two months on average. Once the deal closes, the property is yours and you can move in whenever you’re ready.
3. You lock-in your financing
Purchasing today means you have some assurance on what your financing landscape will look like. Most pre-construction condos require some sort of mortgage approval as part of finalizing the contract, but that pre-approval will usually have expired by the time you take possession. The interest rate and lending landscape may have significantly changed in the intervening years from sale to construction and completion. Buying a re-sale condo means you can lock-in your mortgage terms and interest rates now, and start paying it down right away. This is particularly attractive right now as interest rates currently remain at historic lows.
4. You know exactly what you are getting
Although major changes are uncommon, a new condo may not be exactly as it appeared in the floorplans you were shown because of changes required during construction. This can be frustrating to some new condo buyers but is not a concern with resale condos. Similarly, you don’t have to use your imagination to figure out how things will look, what your view will be like or how the finished building will look – it is all there in front of your eyes for you to inspect and judge.
5. You can know your neighbours
For many people, the neighbours and fellow residents in your condo can make or break the living experience. Fortunately, with a presale condo, you can get insights about who will be living next to you or nearby. By talking to the seller, other residents, building management or by simply exploring the building, you can build up a picture of what the community is like and get an idea about whether it is the right place for you.
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