Preconstruction condos have become all the rage. If you are considering buying a condo, you may wonder whether your best option would be to buy a condo in the preconstruction phase or buy an existing unit. There can be advantages and disadvantages to both options, and understanding what to expect in both scenarios can help you determine which option is right for you.
Pros of Buying a Presale Condo
Among the biggest benefits to buying a preconstruction condo is the fact that since the unit has not yet been constructed, you have far more flexibility in your ability to customize the unit to truly make it your own. With an already existing unit, this would be much more difficult, time-consuming, and often expensive. Therefore, if you have specific tastes or have a certain idea in mind for your future home, a presale condo can be a good option to ensure your home is exactly how you would like it.
Additionally, buying a condo early in the development phase typically allows you to take advantage of the lowest pricing. In most cases, condo prices appreciate over time. If you wait until the unit is constructed, you will usually pay a higher price.
While you will generally need to put a down payment on a presale condo, just as you would when buying an existing unit, when you decide to sell the unit, you can still bring in 100 percent of the unit’s value. A longer closing period also means that you have more time to save for the down payment.
There can also be numerous timesaving benefits to buying a condo in the preconstruction phase. Along with having more time to save, you also have more time to downsize and determine how you wish to furnish your new unit while it is under construction. If you are under a lease or other type of contract for another property, the construction period would also give you more time to complete that contract.
Cons of Buying a Presale Condo
While there are obviously many advantages to buying a presale condo, there are also a few drawbacks to consider. For instance, when buying a presale condo, your money will be tied up during the construction period with no return on that investment until the condo is completed.
Developers strive to ensure projects are completed on time, but the reality is that there can be potential delays in completion due to labor shortages, weather, inspection problems, supplier issues, etc.
Keep in mind that layout plans are subject to change, as the developer has the right to make such changes. During the construction period, a number of factors could come into play that could result in the developer needing to make changes.
It should also be kept in mind that market values can potentially change during the course of the construction period.
Prior to buying a unit, make sure you have considered all of the pros and cons of purchasing a presale condo. Doing so can help to ensure you make the most informed purchasing decision.