Should You Choose a Resale Condo Over a New One? (Part 1)

Choosing a brand new property or going for a pre-existing one is one of the most confusing parts of investing in real estate. What makes it mind-boggling is that these two options have their own benefits and drawbacks. These are the advantages and disadvantages of a new and a resale unit, in case you are pondering which is the best option for you.

When do you get to call it yours?

With a brand new condo for sale, you don’t get to dictate when you get to start owning the property. Delays can and will happen during the construction, so it would be hard to know exactly when you can put it up for rent or start moving your stuff in. In the case of resale condos, once you gain possession of the unit, it’s officially yours to do what you want with it.

What does the layout look like?

When you buy a pre-existing condo unit, you have the advantage of seeing what it looks like from the day you pay until the day you move in. Some people would find this information valuable if they want to be able to envision where everything should go even before they move. With condos in the pre-construction phase, things can change no matter what the finished condo looks like in artist renderings. Developers may alter their original plans during construction, so only when you see the condo once it’s done will you actually find out if the unit has stayed the same or not.

How much will it cost?

Newly developed condos usually have a hefty price tag and require you to pay a much bigger down payment than you would with a pre-existing unit, which is a disadvantage for those who are working with a budget. Still, due to the fact that brand new condos have little in the way of maintenance needs, you’ll be paying rather low condo fees. If you own a resale condo that has been lived in for years and may have sustained quite a lot of wear-and-tear damage, expect your condo fees to be higher.

What should you expect in interest?

If you buy a resale condo, you’ll only have to look at the interest rates today to find out how much you have to pay, so there’s no guessing involved. On the other hand, buying a new condo would be a gamble as far as interests are concerned because of the way that interests constantly change; you won’t really know how much interests will go up or down from when you make an offer until when you finally own the unit.

How noisy is it?

To be honest, there is really nothing you can do with the noise issue, whether you go for an old condo or a new one. Still, a new condo may have the upper hand against an older unit due to the improvements in soundproofing that have been incorporated in recently built condos, and this means that with a new unit, you can slowly easy yourself into the daily acoustics involved in condo living.

Part 2 will discuss further advantages and disadvantages of pre-existing and new condos.