Recently, seeing the rise in the number of questions regarding the investment interests in the Square One Condos, a question has been seen quite a few times. Which one is better place to invest in, a pre-construction Condo or a Resale Condo? Seeing the boom in the realty market, the customers want to be assured of the place their money is going in be it a pre-construction condo or a resale condo. Today, in this article, both the advantages and the disadvantages of Pre-construction condos as well as Resale Condos have been laid out.
Pre Construction Condos
In today’s times , a one bedroom plus den condo, measuring around 650 square foot in area often goes up for around $270k-$310k, which means that the prices of the pre-construction condos in Downtown Mississauga range between $420-$470 per square foot, which although may seem high to some people is almost $200 behind the realty markets of Toronto. Though there is a large difference in the markets of Toronto and Mississauga, various signs of growth in the realty market have been coming up.
Many people are often under the assumption that the rates of pre-construction condos are way cheaper than the rates of resale condos, however according to proper analysis and research it has been found that the prices of pre-construction condos are only 2-8% more than the prices of resale condos. Today, most people consider buying pre-construction condos is because of the philosophy “Tomorrow’s Real Estate at today’s price”. When buying the pre-construction condos, which the owner gets the possession of in about 2-3 years, it is assumed that the realty market may grown in the time-span and hence the customer is able to make good amount of money during the time of possession. Although the concept of pre-construction condos appeals to a select few because only a handful amount of people are able to spare almost $50,000 for a home they will get possession of after 2-3 years and still be confident of the fact that realty market will grow.
But the advantage that Mississauga pre-construction condos have is the fact that it is a near-free investment. In Mississauga, with the help of a realtor agent specializing in pre-construction condos, you only put about 15% of the down-payment to the builders within the first year and rest are paid only after possession and no mortgage or deals of occupancy have to be signed.
Buying pre-construction condos also has its perks. Customer gets to decide the plan and the layout of the condo and also the various finishes ranging from drawing room to the bedrooms as well as the kitchen according the personal tastes and styles of the customer. Also another advantage that comes with re-construction condos is the fact that you get to stay in a brand new, never before lived in flat that you completely call you own.
Even though there is not much of a difference in buying pre-construction condos and the Resale condos in terms of the pricing. What truly sets the purchase of Resale Condos from the pre-construction condos is the entire process of buying and the strategy behind investing in a resale condo.
Most of the purchases of the Re Sale condos are often seen a primary residence option and not as an investment. For investment, customers often prefer to visit the pre-construction condos. What actually sets them apart is the fact a Re Sale condo can be bought for as little as 5% down payment. Also adding to the advantage is the fact that the customers get to see the actual condo and not just a piece of paper on which the floor plan has been drawn. Here the customers can go see and feel what the condo looks like and thus make a more informed decision regarding the condos.
Demands and situations vary from customer to customer and their wishes of owning a pre-construction condo or a Resale condo depend a lot on their requirement. In buying pre-construction condos, a sort of confidence is set on the future of the real estate market that it is supposed to grow and thus the customer is dependent on it. Also, pre-construction condos, offer customers ways to make quick money in a short period of time.
But Resale condos are those who don’t want to play the risky game and keep something safe and valuable for them. But also, people investing in resale condos come with their issues of Tenant problems and also the income produced by a resale condo is considerably less as compared to the quick income in the case of pre-construction condominium.
Trademarks owned or controlled by The Canadian Real Estate Association. Used under license.
The information provided herein must only be used by consumers that have a bona fide interest in the purchase, sale or lease of real estate and may not be used for any commercial purpose or any other purpose.
Information is deemed reliable but is not guaranteed accurate by TREB.
Toronto Real Estate Board - IDX Last Updated: 7/16/2019 8:31:31 AM