Buying a pre-construction condo can be an excellent way to save money on the purchase price, but it is important that you do your research first. If you are considering buying a new condo for resale purposes, then there are three other things that should be taken into consideration before making this investment decision.
What is a pre-construction condo?
A pre-construction condo is a property that has not yet been built. For example, if you are looking for condos in Miami, you can save money on the purchase price if you buy one of these units before an apartment building or complex is completed, but it will take some time for construction to be finished. A lot of people are getting more involved in this type of investment because they realize how much money they could potentially make after re-selling their unit once completion occurs.
What are the benefits?
The main benefit of buying a new condo is obviously the savings when it comes to purchasing costs since your initial investment will likely be lower than what most other buyers have paid for comparable properties already on the market. The next advantage would be convenience – if you do not want to wait for a unit to become available at your favorite building, then this is the best way to guarantee that you will get what you want.
What are some of the disadvantages?
The biggest disadvantage for most people when it comes to buying pre-construction condos would be having limited choices – since there are only so many units in each new development, you cannot pick and choose like with resale properties. The other issue may be increased fees associated with closing costs (and ongoing condo fees) because more lenders require higher down payments on first-time purchases or home equity loans if they suspect buyers do not have enough funds saved up already.
Remember: before making any final decisions, make sure to discuss all options thoroughly with an experienced real estate professional!
What are the benefits of buying resale condos?
One of the main benefits associated with buying resale condos would be having more freedom to choose. Not only will you have access to several different buildings and hundreds of units, but there is no need for any type of down payment or special closing costs if your bank approves your mortgage request. There are also many other perks that go along with this option – such as free upgrades, bonus amenities, parking spaces included at no extra cost, etc.
What are some disadvantages?
The biggest disadvantage for first-time buyers when it comes to re-sale condos might be purchasing prices since these tend to be higher than what they would pay on new properties (although interest rates could make up the difference). However, anyone who has already saved up enough funds for a down payment can benefit from being able to buy property quickly and easily.
Re-Sale Condo vs Pre-Construction Condos
The final decision should be based on whether you are buying your unit as an investment or if it is intended for personal use – this will affect the way that lenders view potential buyers, which then affects what type of loan they would issue in most cases. If you are just starting out with building credit, then putting money into pre-construction condo costs may place too much financial stress on your budget until things start looking better over time (if these units close).
On the other hand, using re-sale condos makes sense because you only have one monthly bill instead of two different payments (a mortgage and a condo fee).
How to buy resale condos
The most important step in buying resale condos is to make sure that you only deal with reputable, experienced real estate agents and brokers who know your market well. Not all companies will provide the same level of service or be able to help their clients get good deals on properties – it can take a lot of time and effort (not to mention money) if they are working for free!
Some things people should look out for before signing any contracts: ask them how many buyers they currently represent, check online reviews from past customers, find out if there was an increase in condo fees during the year when they managed this property, find out what type of rental guarantee period exists in case something goes wrong after purchase. When you hire someone who provides excellent service, you will be able to get better deals because these agents are usually very busy.
The decision to buy a pre-construction condo or a resale condo is not an easy one. In fact, it can be difficult for anyone looking at their options from the outside in. But with all of the benefits and drawbacks weighed out, there are some ways you can make your choice easier. Use some of these tips to help guide you towards the right decision!