Thinking about shopping for a resale condo? It’s faster, easier, and doesn’t carry nearly as much risk as going with something that hasn’t been built. In my experience, when you compare it to buying pre-construction, there are some pretty significant benefits:
- What you see is what you get: With a resale condo, you can see where the walls are, how big the bedroom is, how the space flows, and how much natural light there really is. You can figure out if your couch will fit, where your home office will go, what the view is like. Those things are hard to figure out from a floor plan.
- Costs are predictable: In terms of process, buying a resale condo is just like buying a house. There are no hidden costs, no unexpected expenses, and no occupancy fees. You’ll know what your maintenance fees are, and you’ll have set closing costs, property taxes, land transfer taxes, etc.
- You don’t have to wait forever to move in: When you buy pre-construction, it’ll probably be years before you can call the place your own. With resale, it’s a matter of months, or whatever period you and the seller agree on.
- It’s actually not more expensive than buying pre-construction: A few years ago, buying into a project that wasn’t built yet meant a lower price tag. But, that’s not the case anymore. These days, builders are pricing units based on market value once they’re complete – not their market value now. Plus, delays can cause long periods when you pay occupancy fees that don’t go towards your mortgage, escalating costs even more.
Of course there are some downsides, too.
- Low supply, high demand: This is the biggest negative: there just aren’t enough listings to meet the demand. Resale condos are outpacing house sales in the GTA, and it’s because they are the only way first-time buyers can afford to enter the market. And, as more and more people are priced out of buying a house, more are turning to an already limited supply of condos, making purchasing competitive.
- It won’t be brand new: Someone else will have lived there, so the condition probably won’t be pristine. There could be chips in the countertops or stains on the carpet. Plus, the decor may be dated, with older kitchen cabinets or finishes that don’t measure up to the high-design aesthetic of new builds.
- You’ll have to live with someone else’s design choices: The best thing about buying pre-construction is being able to customize your unit. With resale, you will inevitably walk into a unit and say “I wish that wall wasn’t there,” or “who in their right mind would pick this tile colour?”
Buying a condo – whether it’s resale or pre-construction – is the best way to enter Toronto’s hot housing market. If you’re trying to decide which option is right for you, let’s talk. Our team will be happy to answer any of your questions.
