I often get asked about buying a resale condo property over a preconstruction condo unit (or vice versa) and what the real main differences are. Well here is my take on a high level summary of what you should know.
The opportunity for preconstruction really lies in the flexibility around deposit and payment structure. Since a precon condo will not be ready for in some cases 3, 4, or 5+ years, buyers of precon do not have to worry about having a down payment available in a short time (usually 30, 60 or 90 days closing). Instead they are presented with a payment plan and amounts as a part of the agreement. On the other hand, resale condo or home buyers need to secure a mortgage and with that an accompaning downpayment. This downpayment can range from 5-20% of the purchase price depending on your specific financial profile and if you qualify for a first time homebuyer’s incentives.
Precon buyers also get to work with a blank slate designing and selecting their unit and finishes. For a resale unit, you may not be able to select these nuances from the get go but you do get the advantage of seeing the unit in the flesh as opposed to a floor plan and builder renderings.
If you are interested in securing a condo property in Toronto – whether as an end user or an investor, for a resale or precon you surley have questions and be wondering what your options are. I can happily help guide you through the process. If you have any questions or are interested in any specific listings feel free to reach out, we should chat sooner than later.