Pre-Construction vs Resale - Which option is for you?
Why Pre-Construction?
POTENTIAL PRICE APPRECIATION
Buying at the pre-construction stage typically comes with a price premium vs resale due to future pricing but it could result in substantial appreciation by the time your property is completed. Prices are locked in and there are usually no bidding wars.
TIMELINE
Projects can take anywhere from 1-5 years or more to complete - meaning no mortgage is required until once your property closes.
EXTENDED PAYMENT STRUCTURE
Payments are stretched out over many months and years. Instead of having to put your entire down payment right away, you have several years to save up – without worrying about price increases.
BRAND NEW
Everything is brand new and most items are covered by warranty. You can choose from various designs, layouts and interior finishes offered by the builder, making it a more personalized experience.
Why Resale?
CURRENT PRICING
Properties are typically priced at today's current market value. Whereas, pre-construction is priced based on the projected value over several years down the road. In some cases, prices can even be negotiated on the property.
TIMELINE
You can move in (or rent out) right away, avoiding the wait associated with pre-construction projects. Your mortgage and down payment funds are required to close.
ESTABLISHED LOCATION
Properties may be located in more established areas with existing amenities and infrastructure. You also avoid living in an active construction zone.
KNOWN CONDITION
You can see exactly what you're buying, including the condition and finishes of the property, its amenities and any potential issues, without relying on renderings or floor plan drawings.
Ultimately, the decision should be based on your specific circumstances and preferences. Some buyers prefer the flexibility and potential customization of pre-construction, while others prefer the stability and immediate occupancy of resale properties. It's essential to work with an experienced real estate agent to make an informed decision that aligns with your goals and timelines. Additionally, consider your long-term plans, as both options can be viable investments when approached strategically.