The Pros and Cons of Purchasing a Pre-Sale New Construction Condo

The cost of new construction is mainly due to the fact that the developer has to pay for the land and construction costs. Those fees can be considerable, which means that your unit is going to have an initial price tag of at least twice what you could buy a resale condo for.

Another reason that new construction condos are more expensive is that they are designed and marketed for the luxury and ultra-luxury segments of the market, which means they have top-of-the-line appliances, materials and finishes. If you're looking for a condo that's in an area of high demand, the best way to save money is by purchasing a new construction condominium.

In addition, many developers have strict rules about what they can and cannot do in the pre-construction stage of development, such as leasing. These policies can make it difficult for you to use Airbnb or other short-term leases in the unit and may limit your ability to rent out a unit after the construction phase is complete.

The other disadvantage of purchasing a pre-construction condominium is that it's difficult to get a mortgage. If you need a mortgage, you'll need to wait until the construction phase is over, which can take up to two years before you can close on the property.

Purchasing a pre-construction condo can also be risky if you're not sure if your job is secure or if you think there will be changes in government housing policy that could affect the value of your home. You'll also need to be confident that you can complete the purchase when the construction is over and have the funds available to close on it.

If you're looking to buy a pre-construction condo, you should consult with a real estate broker and an attorney who specializes in buying and selling new construction homes. They'll be able to help you avoid some of the common missteps that buyers can often make when buying a new construction condo.

Before making an offer, you should ask to see a model condo and walk through it. The model apartment will give you a sense of how the condo will look once it's finished, and it can help you assess whether or not you will like living in the condominium. You should also check that the model condo's views match what you will get when you move in.