When shopping for a condo, there are many factors to consider and many big decisions to make to ensure you choose the right investment. What size should you purchase? Which location should you buy in? What are your must-have amenities? Whether you’re purchasing the condominium as an investment or as your new home, it can be a daunting task.
Another factor you’ll need to consider is whether you want to purchase a new condo that hasn’t yet been built or an older condo for resale that’s been previously owned. Both have their advantages and disadvantages. Understanding the pros and cons will help you make the right decision.
1. Floor Plan
When buying a new condo, you will go to a sales office, view a model of the site, and view different floor plans for suits in the building. You won’t be able to see the condo you’re buying. Rather, you’ll be buying based on floor plans, which can make it difficult to visualize the space. Your condo, when finished, will not look like the model you viewed, and you may be either pleasantly surprised or disappointed with the end result.
Finishes, features, sizes, and layouts may change from the floor plan. If you’re buying as an investment, these little details may not be that important to you, but if you feel the need to see the space you’re buying in all its detail, an older condo might be the better choice. With an older resale condo, you’ll know exactly what you’re getting and can see it in person.
Your timeline can be the deciding factor when choosing between an old vs new condo for sale. When it comes to new condo projects, you may have to wait years before you can move in. Even if you have a closing date, delays may mean the timeline is extended. If you’re flexible about move-in dates, this may be fine for you. If your timeline requires you to move soon or if you can’t afford delays, then choose an older condo. The dates will be set and you won’t have to worry about delays.
Even when you move into a new condo, it’s likely that all the amenities won’t yet be up and running. There may not be grass on the ground and the swimming pool may not be built yet. The same is true inside your condo—there may be some finishing touches that will need to happen after you move in. You’ll need to determine whether you are fine with this or now.
In many locations, new condos are covered by a warranty program that offers protection for deposits paid and warranties for defective units and common areas. Older condos don’t afford the same warranties.
5. Tax Benefits
If you buy a new condo, you may be able to get a tax exemption, which does not apply to you if you were to buy an older condo.
Often, new condos are priced lower if you purchase early. You may have to buy based on a floor plan and wait months or years to move in, but it may be worth it due to the price.
7. Age of the Building
With a new condo, you know the building and the unit you’re moving into is brand new and won’t require immediate repairs. With older condos, depending on the age of the building, there may be deterioration that requires renovations. This could have a small or a large impact on your unit and your quality of life, so it’s important to consider.
Whether you’re looking for a new home or a great investment, work with a realtor to ensure you’re purchasing the right unit for your needs.