Buying a resale property pros and cons
You can see what you’re buying, and you’re able to walk through and feel how big the bedrooms, living room, kitchen, etc. are. It’s a tangible product.
MOVE IN SOONER
With a resale property, you’re able to move in anytime that you can negotiate with the seller. Resale move-in dates are a lot sooner than presale move in dates (given you’re buying at the time initial sales release or shortly thereafter). In this case, you get to move in as soon as you close.
PRICES NOT FIXED
You may be able to negotiate for lower than the list price. (Selling prices for condos purchased pre-construction from the builder are mostly fixed.)
NOT BRAND NEW
If the unit has been lived in for more than a couple of years, you might need to set aside money for renovations.
Buying pre-construction property pros and cons
LOCATION… LOCATION… LOCATION
You get the whole inventory to chose from! Choosing the best location for your future home based on where the property will be built and having options to choose the type, style, floor level and layout of the unit you want!
PRICE LOCK IN
The earlier you get in, the lower the price you’ll lock in. The best opportunity to unlock the best appreciation potential is by taking advantage of early launch prices.
BUILD EQUITY WHILE CONSTRUCTION LAST
Prices keep increasing as the construction completion date approaches, which means, your m2 increases in price as the construction advances.
FLEXIBLE PAYMENT SCHEDULE
You won’t have to pay the full price at once, you can lock in your unit location and price with as little as 30%, then make payments through the duration of the construction (40%-50%) and leave the remaining balance due at the time of closing (20%-30%). There are some developers that offer a 30% downpayment to lock in the unit and 70% due at closing.
YOU GET A BRAND NEW PROPERTY
You are the owner of a trendy, modern and brand new property. Tenants will naturally be drawn to the modern amenities, appliances, and more that come with a new condo building.
New constructions generally offer limited coverage on workmanship and materials relating to various components of the home, such as windows, ventilation and air conditioning, plumbing, and electrical systems usually for 1 year.
You are buying based only on a floor plan without seeing the finishes, the layout or outside view of the building. All of the measurements that the developer provides you are estimates and subject to change, so you’ll never be 100% sure of what you are purchasing.
DATE NOT SET IN STONE, MUCH LONGER MOVE IN DATES
Nothing is guaranteed. A condo building usually takes several months to complete. While most reputable developers deliver developments on time, late deliveries aren’t uncommon.