Buying new can be fantastic, but here are some things that you should keep in mind when looking to buy new!
1) Tread carefully if you are buying pre-sale. If the project is not underway there is a risk of a Developer failing to complete the project should the market change (we have seen this happen over the past 10 years)
2) Always have an Agency Relationship so that your interests are protected by your Realtor – i.e. buying from the show room host may prevent you from being able to secure an appliance package, parking, locker etc.
3) Don’t forget the GST! This is a penalty of buying new that you can't pass on to the buyer when you sell the property. You need to plan to own this investment long enough to recoup the $$ you spent on taxes like the GST.
4) Buying a 'Contract' vs a Strata Lot - this is known as an assignment. Having a Realtor to guide you through this process is essential!
5) Warranties are GOOD! A perk of new is the 2 - 5 - 10 year warranty which gives you peace of mind and if you sell before the 10 years are up adds to the value of your investment.
6) Be aware - buying off a plan will likely be smaller when you see the property in person. Often a builder's measurements are larger than the square footage that gets registered at the completion of the project and registered at the Land Titles Office.
7) Don't be fooled into thinking you 'own' the parking space, even if you 'buy' a second one from the Developer. Unless the parking spot is registered on Title you DON'T own it. You will have the use or the right to use a space.
8) Find out how many suites the Developer is keeping - or if there is anyone who is going to be a majority owner. All Strata’s are best when the ownership is not weighted in favor of a single owner.
9) Don't be seduced by 'new' - Remember, everything gets old eventually - so buy location, square footage - you can always update a suite, but you can't make a little suite bigger....
10) Whether it's a condo or a house there will always be a deficiency walk through before you pay - don't miss this important opportunity to make sure even the smallest details are corrected before you sign on the dotted line!
Lots of pros and cons - reach out to the O'Brien Group for more info!