Buying a New Condo: The Pros and Cons

You can buy a new condo from the developer before or during its construction and also before the condo corporation is formed. A developer may have some unsold units available after the condominium has been completed and registered.

In some markets, the developer may wait to sell a large percentage of the units before registering the condo corporation or even starting construction.

Usually, a deposit is required to secure or reserve, a condo unit in a new development.

Buying a new condo. The Good Side:

• New home warranty protection. (Up to five years)
• You have more choice of locations within the building; floor level, different views, etc.
• Customized design (in some cases); more options and upgrades to choose from.
• Newer buildings have less risk of having to undergo costly repairs and renovations.
• The purchase price could be lower than resale market condos. Especially in pre-sale phase of the construction.

Buying a new condo. The Bad Side:

• If the constructions have not started, you cannot physically see what you are buying and have to rely on floor plans and sketches that are subject to change.
• Your initial deposit will be locked up for the duration of construction.
• Some banks may refuse to give you a mortgage if the condo corporation has not been registered.
• The construction of the units may not be completed by the expected date. And the delivery date can be a lot later than originally agreed.
• It’s possible that you may move into your unit while construction continues in others.
• Last but not least; More taxes. New constructions have to pay GST and QST. (Not the same as the Land Transfer Tax) But, the good news is: you might be eligible for a housing rebate.

So there you have it. The choice is yours.

Still want to buy a new condo? Send us an email. Perhaps we can help you.

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