That’s it, you’ve decided. You’re getting out of the rental game, and you’re buying a condo. Amazing news! But now you’re not sure whether to go with pre-construction or a condo which is already built.

 

There are pros and cons to both, and ultimately the decision comes down to what’s right for you and what helps you reach your goal. To make your life a little easier, we’ve come up with a pros and cons list for both!

 

Pre-Sale Pros

 

You buy a pre-construction condo at a fixed price

Buying a pre-construction condo means you’re buying a condo at a fixed price, which is set by the developer. These prices aren’t subject to the fluctuations of the real estate market. This means you’re buying a condo in the future at today’s price (#winning). Which, in a buyers market, is a huge advantage. 

 

Pre-construction Condos are new

You are the first owner; therefore, you’re the first person to live in the condo. That means everything is in mint condition when you move in. Nobody has used your toilet or left your oven with a layer of grease. Plus, new condo buildings are under warranty, meaning many issues are covered, so fixes won’t leave you out of pocket. In Battistella buildings, general workmanship is covered for the first year. Plumbing and electrical are covered for two years; the building envelope is covered for five years, and the overall structure of the buildings is covered for ten years. Learn more here.

 

Pre-construction Condos give you more time to get your sh*t together

Some Developers can offer flexible deposit solutions as they are yet to be built, and because of this, you have more time to save for a downpayment. You also have more time to shop around for mortgages and to think about how you’ll furnish your new home. Unsure of the difference between a deposit and a downpayment? You can find out here. 

 

Pre-Sale Cons

 

You’re buying a condo without seeing it

Typically when you’re purchasing a pre-sale condo, you’ll be shown a show suite. Still, limited space constricts developers to only being able to have one maybe two replica condos in their sales centers. At Battistella, we’re lucky with today’s technology that we’re able to create virtual tours that allow us to walk through each condo and to check out the fantastic views. Plus, as a Calgary based company, we have previous developments that we can tour customers through to get a feel of the design and quality they should expect at NUDE. 

 

You have to pay sales tax on any new build

Paying GST is a fact of life for us Canadians, and buying a new home is no different. BUT all is not lost. You might be eligible for a rebate on some of that GST. The New Housing Rebate allows homebuyers to recover some of the GST on new/pre-sale condos as long as you intend to use it as your primary residence. The full rebate applies to condos priced at $350,000 or less. However, keep in mind that you can still get a partial rebate for condos up to $450,000. For more information, you can check out our Sales Lead Renée’s blog! 

 

It’s a waiting game

If you’re buying pre-construction, you have to wait. If you’re looking to move in straight away, then pre-construction isn’t for you. However, waiting does have its perks. It allows you extra time to get your sh*t together. It gives you more time to save, more time to acquire the furniture you want instead of forking out for it all at once. And it allows you time to adjust your spending, so when you do move in, you’re used to the monthly payments. But timing is everything if you can’t wait, then don’t buy pre-construction.

 

Resale Pros

 

What you see is what you get

Unlike pre-construction condos, you’re able to see the resale condos which are currently on the market in real life. You can walk through them for a closer look and feel of all the features. Plus, you’re able to see the building and check out the amenities. If you’re feeling brave, you can also try talking to some of the neighbors to see how they like living in the building!

 

You can move in right away

Part of the negotiations when purchasing an already built condo is agreeing on a move-in date, and once you’ve signed the deal, your move-in date is set in stone. As the condo already exists, your moving in date can be sooner rather than later.

 

You don’t pay GST on a resale condo

Due to the building not being new, you don’t pay GST. The original purchaser would have already paid this, so the next time it’s sold, there are no taxes levied.  

 

Resale Cons

 

Resale condos usually have higher condo fees

It makes sense. Older buildings tend to need more maintenance and repairs, and part of your condo fees pay for these. The more repairs, the higher the fees. You can learn more about condo fees here.

 

Renovations aren’t cheap

You’ll probably have to or want to do some sort of renovations. Resale condos have been lived in, and maybe their taste in finishes doesn’t match yours. (Popcorn ceilings or shag carpet anyone?) So, whether it’s just a bit of TLC or a whole renovation, you’ll have to budget time and money for the changes.

 

No warranty!

Depending on the age of the building, the warranty period may be over. This means that if there are major repairs to be done, you’ll have to dive into your pockets. In these cases, you’re often asked for the money in a lump sum, so keep that in mind. 

 

If you’re leaning towards pre-construction and would like to talk to a member of our team, register here and we’ll be in touch!