So you’ve decided to buy a condo. In Edmonton’s current real estate market, that’s an excellent decision, especially since so many condo developments are currently being built. But for all of the new places in the construction phase, it may be difficult to see the advantages of buying a resale condo over a new one. Here are some key considerations for new condos, and why each including important advantages and disadvantages.
New condos are usually sold before they’re even built, which means you can (sometimes literally) get in on the ground floor of a development. A new condo will be yours first and you get to make it whatever you want, as long as it’s in line with whatever the condo board allows.
New condos have a number of advantages over resale condos, including:
-Special protections: Since many condos are sold “pre-construction,” governing bodies have put special protections in place about any potential buy. That means that many of the risks for buying a new condo that hasn’t yet been built will be mitigated.
-Government assistance programs: Buying new homes often comes with incentive programs from the provincial and federal governments. These programs can vary wildly in what they offer, but in general they offer tax credits or reimbursements for money you’ve paid for the condo. This can also include money for homes.
-All yours: Buying a brand new condo means you’re the first person there. You get to make it entirely your own and, if you decide to move, you can have a nice rental property later in life.
There are some disadvantages that come with new condos, including:
-Buying off a floor plan: While some technologies, like virtual reality, are helping potential buyers visualize new condos, most people are still buying off a simple floor plan or blueprint. This isn’t the greatest aid in helping you visualize your home, and that means you could be in for some surprises come possession day.
-Not quite what you ordered: While most condo sellers would like to imply that your condo will be perfect and ready on the agreed date, this rarely happens. In fact, delays and construction flaws are common and you may have to run through a thorough inspection of your new condo before moving in.
-Price: New condos, in general, are more expensive than resales. This can be in list price and in the fees following the purchase, including legal fees and other costs.
-New condo board: A brand new condo board has no history, no rapport, and can often be difficult to navigate. With a resale, the condo board can often be more established and you can navigate their demands and processes more easily.
A new condo has plenty of advantages but can also have distinct disadvantages. When looking at a new condo, be sure to take the time to consider if it’s right for you.