Buying a New Condo: What You Need To Know?

If you’re looking into buying a condominium, you basically have two choices. You can opt for a brand-new condo (perhaps one that isn’t even built yet) or an older one. This can be a tough decision, because there are definitely pluses and minuses to going each route. Before you decide, take a look at the decision from both sides to determine which option is the best one for you.

Maintenance fees

When it comes to new condos Montreal residents may find that the maintenance fees are actually lower with a new unit as compared to what you will be pay in a resale unit. This may seem counter intuitive, but the reason new builds often include lower maintenance fees is that they want to entice buyers to purchase their units.

Offering lower fees is one of the ways that condo companies attempt to lure buyers toward their communities and away from the competition. Note, however, that other reason new condos come with lower condo fees is that the builder is only estimating what the actual monthly costs should be.

Once you purchase the unit and have lived in it for a year or more you could find that your maintenance fees increase to be more in line with the actual monthly expenses of the condo company. If, for example, the cost of cleaning, snow removal and grounds keeping services in the first year exceeds the building owner’s projected costs, they may raise maintenance fees for the upcoming year to compensate.

When you purchase a new condo, you’ll have the advantage of having everything all new in your home. Any included appliances will be new, the heating and cooling system will be new, and the décor will be modern. The building or community itself will likely feature up to date amenities, too, which can be a big selling factor. An older condo, by contrast, may need some sprucing up on the inside, which will be your responsibility if you purchase the unit. Updating things like appliances and flooring can be very costly, adding to the overall cost of purchasing the condo.

Although it may appear that an older condominium is a more affordable option, but it’s important to consider the costs you will incur to update the unit. A newer unit is move-in ready, but you won’t have the opportunity to personalize it as much as you would if you were to update an older unit to your taste. It’s a trade-off.

If personalization is what you’re after but you want to still purchase a new home, there is an option that gives you the best of both worlds. You can opt to purchase a new build condo. In this case, you purchase a unit before construction is complete or even begins. You’ll get to customize the unit to your taste, choosing everything from kitchen cupboards to flooring to countertops and fixtures. These options just aren’t available when you purchase a resale unit.

There are many benefits to buying a new condo, but for some buyers the advantages of a resale unit can outweigh the benefits of buying new. The important thing is to take stock of what you want out of your condominium and how much you can spend. From there, you can weigh the pros and cons of each option and find out which one is best for you. Happy house hunting!

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