First-Time Condo Buyer? Then Don’t Turn a Blind Eye to New Development Units

11 June 2018
Joshua Chisvin

Let’s cut straight to chase here, alright? Whichever way you slice it, first-time condo buyers shouldneverignore the benefits of purchasing a unit within a new development, also more commonly known as a pre-construction project. No, I won’t kid you. Depending on your wants and needs, it’s not always the perfect option. But for my buck, the pros to pre-construction far outweigh the cons.

Why’s that?

A NEW DEVELOPMENT UNIT WILL BE OPTIMIZED IF YOU COMPREHEND HOW TO READ FLOOR PLANS

One of the biggest advantages of buying resale is getting to see the unit for yourself. And several people in the past have made mistakes buying pre-construction because they didn’t fully understand how the floor plan would eventually translate into the final product. So, make sure you identify any and all issues like a bedroom without a window, an unsuitable amount of natural light or long hallways that take away from your overall square footage.

A NEW DEVELOPMENT UNIT WILL BENEFIT YOU IF YOU REALIZE ITS POTENTIAL VALUE

Is the building in an up-and-coming location? Is the unit you intend to buy going to come with a great view? How long is the daily work commute going to be? Does the developer have a history of success? These are just some of the indicators that can help you determine whether your investment will grow steadily over time or not. So I advise you to familiarize yourself with what these factors are before you start your search.

A NEW DEVELOPMENT UNIT WILL SERVE YOU WELL IF YOU'RE PREPARED TO PLAY THE WAITING GAME

All condo developers will offer an expected completion date. The better the developer’s track record, the better you can count on moving in as close to the projected completion date as possible. That said, before you invest, be sure you’re actually committed to condo living for the next several years. Or, that you have a sound plan to rent it out in the future.

A NEW DEVELOPMENT UNIT WILL HELP YOU SAVE MONEY

Some developers offer special incentives for first-time buyers. For example, you’re often able to take advantage of early VIP and platinum sales offered through agents. And with lower condo fees on new condominiums compared to resale ones, you can save more in the first decade. Also, on average, pre-construction units provide a better value per square foot over resale units. What’s more, when buying pre-construction, you don’t have to be concerned about bidding wars, which ultimately drive up the price. After all, prices are final. Finally, pre-construction allows you to put down a small percentage initially, thereby giving you plenty more time to save up for the total down payment.

  Real Estate