Both new and resale condos offer pros and cons that you should consider before making a decision. The table below offers some of the key things you'll want to keep in mind:
Buying a New Condo
Buying a Resale Condo
Pros:
Pros:
You have input on how your unit is finished.
You know the layout and room sizes. You have a sense of how your furnishings will fit and look in a unit.
You might save money by buying early, before prices increase.
You can meet other neighbours and get a good sense of how well the building is maintained.
You have a greater choice of units to choose from.
Usually, your closing date is firm.
New home warranty protection covers any construction defects.
Cons:
Cons:
If the developer has not yet sold a specific number of units and registered the condominium corporation, you may not be able to obtain a mortgage on an unregistered unit.
You won't get a choice of colours and layout-and there may be restrictions on how you can change your unit.
You may move in while noisy construction is still underway.
You may find outstanding maintenance issues.
Delays in construction may mean you cannot move in on the original closing date.
All the amenities you would like may not be available.
If you decide to buy a resale condo:
Obtain and review prior to purchase the corporation's documents, including the estoppel/status certificate. The estoppel certificate includes the condominium corporation's governing and financial documents, as well as its insurance coverage. Many times there is a cost to obtaining these documents but the fee is well worth it.
Before you buy, verify that the condo has enough in its reserve fund to cover major repairs. If major repairs are required and funds are not available through the reserve, then unit owners may be expected to cover the shortfall.
Whether you purchase new or resale:
Hire a professional inspector to perform a thorough inspection of the unit.
Have a real estate lawyer (or notary in Quebec and British Columbia) review the Agreement of Purchase and Sale before you sign it.
