Condo investing can be a great way to build equity and generate income, but deciding whether to invest in a resale or a new condo can be tricky. Condo investing can be a great way to grow your wealth. However, there are numerous things to think about and consider before making your investment. In this blog post, we'll look at resale and new condos' pros and cons to help you decide which option is right for you.
Condo or resale?
Are you considering buying a resale condo? Do you think that because it's an older building that doesn't have the same amenities, it will be more expensive?
There are numerous misconceptions about buying a resale condo versus a new one. Vista Residences will cover everything you need to know about buying one of these amazing investment opportunities.
First up: Is a resale condo worth buying?
Yes! Buying a resale condo can be an excellent investment for your money. With the right location and timing, you can make a fortune off of an apartment in the market for years. Only so many people are willing to buy properties at this price point—so if you find one with good bones and a solid location, you're golden!
The next question is: Is a resale condo more expensive?
Well... yes and no. It depends on what unit/building/area you're looking at and how much work needs to be done before sales prices can be reached again. If the seller is motivated enough (and they will likely be), then they may be able to sell their property within a few months after listing it for a higher price.
However, if the condo is in a state of disrepair or needs significant updating, it will likely sell at a discount. It's all about supply and demand—prices go down if there are more sellers than buyers.
What are some things to look for when considering buying a resale condo?
Condos can be a significant investment, but you must do your homework before buying. Here are some things to remember and take note of when considering a resale or new condo.
Location
Location is essential in determining whether you should buy a resale or a new condo. If you want to live in a nice area with a low crime rate and good schools, you should rent a resale condo. However, if you want your children to be able to play outside without fear of getting shot, then go for a new condo.
Capital Appreciation
The capital appreciation in both types of condos is about the same at this point because there are only a few developments under construction right now. However, in future years, more developments will increase the value of both condos significantly compared with other real estate investments such as a house or single-family homes (which also have their benefits like low maintenance fees).
Property taxes
One of the most significant factors is the property tax rate. A resale condo can cost less to maintain than a new one since you're not paying for construction costs and maintenance fees. However, if you live in a high-tax area, it may be easier to get financing for a new condo home instead of an old one that has already been paid off.
Maintenance fees
Another factor to consider is maintenance fees. New condos usually have higher maintenance fees than resales do because they're newer and have fewer problems with leaks or other issues that need fixing. If you choose resale over new, you'll have more money left at the end of each month after covering your bills and paying down debt.
Layout and square footage
The layout of a condo can make a big difference in whether you'll be happy with your purchase. Pay attention to the layout and square footage if you're looking at a resale unit. Some units have been divided into smaller rooms to make them more affordable, which can make the space feel cramped.
Your lifestyle needs
Do you have a family or pets? If so, you should look for a condo with a floor plan to accommodate your needs. New condos are likelier to have open layouts with plenty of space for families and pets. However, if you're single or don't have any children, you may prefer the smaller layout of a resale unit.
The Pros of Buying a Resale Condo
Reduced Closing Costs
When you buy a resale condo, the seller typically pays the commission for the real estate agent. This can save an investor a lot of money at closing.
More Negotiating Power
Because there are usually more resale condos on the market than new construction condos, you have more negotiating power regarding price.
More Condo Options
With resale condos, you have many more options regarding size, location, and amenities. You're not limited to what's available in a new development.
Immediate Occupancy
One of the biggest benefits or pros of buying a resale condo is that you can move in right away. With new construction, you often have to wait months or even years for your unit to be completed.
The Cons of Buying a Resale Condo
Lesser Return on Investment
While resale condos can be cheaper to purchase, they also tend to appreciate at a slower rate than new construction condos.
Maintenance and Repair Costs
Because resale condos are older, they may require more maintenance and repair than a brand new unit.
HOA Dues May Be Higher
Homeowners Association (HOA) dues are often lower in newer developments because they haven't had to pay for as many repairs and improvements.
The Pros of Buying a New Condo
Higher Return on Investment
New construction condos often appreciate faster than resale units, so you can see a greater return on your investment over time.
Lower Maintenance Costs
Because new construction condos are brand new, you won't have to worry about repairs or maintenance for many years.
New Amenities
New construction developments often have luxurious amenities that older buildings can't match, like swimming pools, fitness centers, and concierge services.
Tax Breaks
This may be eligible for certain tax breaks when you purchase a new condo, like the first-time homebuyer's credit.
The Cons of Buying a New Condo
Higher Closing Costs
Because you're the first to own the unit, you'll have to pay for all the closing costs, including the real estate agent's commission.
Longer Wait to Move In
One of the downsides of buying a new condo is that you often have to wait a few months depending on the terms or even years if the condo is pre-selling for your unit to be completed.
Limited Availability
New construction developments are often selling out quickly, so you may not have as many options to choose from.
So, which option is right for you? This depends on your individual needs, priorities, and preferences. If you're looking for a property, you can move into immediately. A resale condo may be the better option. However, if you're willing to wait a little longer and want the potential for a higher return on investment, a new construction condo may be the way to go. Ultimately, the decision is up to you!
Buying a resale or brand new condo unit is a personal decision you should make after careful consideration.
These are just a few factors to remember when deciding whether to buy a resale or a new condo. Ultimately, the decision comes down to your priorities, preferences, and lifestyle needs. Weigh the pros and cons of each option before making a final decision.
You can't go wrong with Vista Residences when looking for a condo unit that will give you the best return on your investment. Our units are designed and built with the future in mind, and our team of experts is always on hand to offer the best real estate advice and support. Whether you're looking to sell your unit in the future or want to rent it out, we can help you maximize its potential. Our experience and expertise can help you make the most of your investment. So if you're considering getting the best resale condo unit, Vista Residences has your back.
For more information on Vista Residences, email info@vistaresidences.com.ph, follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.
