Date Posted: 2012-05-31 03:11:12
Site Posted: Myproperty.ph
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When investing in real estate, you always have a choice between a brand-new property or a pre-existing one. However, as both options have their ups and downs, it can be confusing to choose which one’s right for you. To help you make a decision, here are the pros and cons of a new and a resale condo.
Date of ownership
When buying a new condo for sale, there really is no guarantee when you can take possession of the property. Construction delays can happen, which means that you can’t pinpoint an exact date when you can move in or rent it out. With resale condos, the date of possession is exactly the day when you can call the condo yours.
Layout
With a resale condo, you know precisely what the unit looks like when you buy it. This is advantageous especially when you want to make early plans of how you want the unit to look when you move in. Condos that are in the pre-construction stage can change, despite what artist renderings may look like in advertisements. It’s not unusual for developers to tweak their plans, what you see in the beginning may not be what you will get when the condo building is actually finished.
Payment
In most cases, new condos cost more and require a bigger down payment than pre-existing units, which can be a problem if you have a certain budget to deal with. On the other hand, since new condos require little or no maintenance, your condo fees will be much lower. Owners of resale condos have to pay bigger fees, since their units have seen years of use that may have resulted to damages.
Rate of interest
When you buy a resale condo, it’s easy for you to determine how much interest you will have to pay by looking at interest rates today. Interest changes often, which means that you’ll have a harder time tracking your brand-condo’s interest rate from the date that you make the offer to purchase until your actual date of ownership.
Noise
Noise is a downside for both a new and a resale condo. The main difference is that a new condo may have been built with better soundproof walls compared to resale condos, so you might have a better chance of gradually adjusting to typical condo noises with a new unit.
More pros and cons of new and resale condos in the next article.
Jillian Cariola, Writer
(cover image by Adrian van Leen)
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