When comes the time to buy a condo, you usually have a few options you can go for. One that is particularly popular right now is buying a pre-construction unit. However, while buying a pre-construction condo has its benefits, it also comes with its share of risks. Let’s look at the pros and cons of buying a pre-construction condo and see if it’s the right choice for you.
The Pros of Buying a Pre-Construction Condo
One of the benefits of buying a pre-construction condo is that you lock in the purchase while having time to pay. You will have a payment schedule which will give you time to raise the down payment if needed.
You may also benefit from the appreciation of the property. It is generally worth less when it is under construction than when there is a completed building because of the uncertainty of the final result. If the unit is under construction, you may be able to get a discount on the property or extras thrown in like a free parking space. In general, amenities tend to be better in newer projects than resale units.
You may be able to buy a condo under construction because it is a project by a top name in the industry. Then, as long as you like the location and the promised project fits your lifestyle and budget, you can have your pick of units by buying before the project is completed.
You also get to have a say in the design of your unit. You could pick the paint, the flooring, the finish and the appliances. With existing condos, your choices are to take it, leave it, or renovate it.
The Cons of Buying a Pre-Construction Condo
One of the benefits of completed condos is having known overheads. You’ll know what your maintenance fees and property taxes will be. Projects under construction can estimate these budget items but they don’t know for certain. You may find that maintenance fees are several hundred a month more than you originally expected. However, newer buildings do tend to have less maintenance, so you may not pay much in maintenance fees for years.
Considerations Regardless of Construction State
A condo is a home, a long-term investment. Choosing a condo because you’d be happy to live with that view or floor plan is a mistake without factoring everything else that affects quality of life. How transit-friendly is the area? Don’t fall in love with a condo and find yourself hating the commute to work. How safe is the area in general? Your home should be a refuge, but you shouldn’t feel under siege.
Nor should you only look at the amenities of the condo project itself. What are the amenities of the area around the condo, be it parks or parking? There may be city plans to add amenities to the area that could make a condo project an okay place to live now but even better in a few years. Various projects offer an excellent location, access to public transit, access to direct communication with something like architecture firm Denver and a mixed-use waterfront development that means you don’t have to travel far for shopping and entertainment.
Pre-construction condos can be a great way to guarantee the home of your dreams, if you select the right project and take the risks into account. Take your time and do your research.