There are pros and cons that go with your decision. New or re-sale both have their advantages and disadvantages.
Depending on where he is in line, the Buyer for a new Central Toronto condominium project may find himself able to choose the exposure and location of his unit in addition to picking finishes and upgrades. Extra parking, locker space and/or the location of both in the building are often possible to choose. If the ground has not been broken, it may be possible to design the layout of your unit and work with the builder to customize your apartment to your wants and needs. Buyers of new projects often enjoy lower monthly maintenance fees for a period after taking delivery. Developers often pay them down in advance as an inducement to Buyers. New buildings also come with warranties which take care of what might otherwise be costly “growing-pain-repairs.”
The downside of new is not being sure when your apartment will really be ready. Builders insulate themselves from delays caused by problems that arise during the construction period by reserving the right to postpone the occupancy date almost indefinitely. In a rising market, developers may be tempted to make life difficult for the earliest Buyers, hoping they will rescind, thereby enabling a sale to a different Buyer at a higher price. An early Buyer who stays the course usually winds up with an apartment he can eventually sell at a profit. The early Buyer who walks away in a rising market finds himself in the position of having to pay more for something else. There are also instances where the level of fit and finish originally advertised falls short of the delivered reality. Once again, this is not too important in a rising market but can be disastrous in a falling market.
The upside of a resale unit is you are buying what you have seen. There are no surprises. Older projects are often better located than new ones (naturally – the early developers were able to buy the best locations). Many older projects have beautifully landscaped grounds. The price of land in Toronto today almost ensures that new buildings will not come with much in the way of outdoor space. Older projects usually offer larger apartments than what is being built today. The new 800 sq. ft. 2 bedroom is what the old 1100 sq. ft. used to be. The older apartment is not only bigger – it usually costs less per square foot than the new one!
Another advantage of buying a resale is being able to ascertain the value per square foot by examining recent sales in the building. This enables a Buyer to evaluate whether the asking price of the unit is at, above or below recently established market value. There is no such advantage when buying a new unit in a new project. Older buildings in excellent locations are almost always maintained, repaired and upgraded as they age. Phoenix-like they resist decay by having new owners gut and renovate their apartments. The benefits of an established location combine with modern technologies to create renaissance living for those with foresight.
Whether you are a first-time buyer or a downsizing empty nester looking for just the right place, an experienced real estate agent can assist you in arriving at the best possible outcome.
Best Wishes for Success,
Peter
