Essential Tips for Buying A Pre-constructed Condominium
A pre-constructed condominium is an excellent way of getting a new space at a decent price. One of the advantages of getting a pre-constructed condominium is that it can be customized to match your style. Here are the things you be aware of when buying a pre-constructed condo:
1. Many pre-construction condominiums get delayed. Understand that many condo projects are not always ready at the expected time provided by the developers. Therefore, you should plan to move in six months later than the proposed move-in date.
2. Expect to put up to 20 percent down. You may buy a resale condo with as little as 5 percent down payment. But, such is not the case for pre-construction condominiums. The standard is about 15 to 20% down payment except in a few instances.
3. You will have to pay HST. Newly built condos are subject to HST, unlike resale condos. It is worth noting that your purchase may qualify for the New Housing Rebate Program of the GST/HST
4. New-build condo may attract additional closing cost. Your purchase price can be increased by 1 to 3 percent through expenses like utility connection fee, HST on new appliances, as well as builder/developer adjustment charges.
5. You may be a tenant sooner than you planned. You should also be aware that your condominium may be ready for moving in before the building project completes. In that case, the building cannot be set up as a condo corporation. Instead, you can rent the unit from a developer instead of owning it.
6. Your condo fee may rise. Condo developers attract prospective buyers with reduced monthly maintenance fees. The fees will increase after two or three years of staying in your home. These condo fees can increase significantly, so you must keep that in mind during your budget planning.
7. Lock in your mortgage rate beforehand. Developers usually work with their preferred mortgage providers. If you are in this circumstance, you will have the opportunity to lock in at current low-interest rates. This low-interest rate will come into play as soon as you close on your condominium.
8. The building may not look exactly like what you saw in the video or showroom. Developers have the right to adjust their plans. The indoor-outdoor may not be what you saw in the video as some features may be optional or at additional costs.
Speak to your real estate agent today about your condo deal to know what to expect before starting.
About the Author
Tina Broyles, DRE 01009212 & NMLS 91630
Headline: Tina Broyles: Your Expert Real Estate Agent for Fremont, San Jose, and the Bay Area | eXp Realty
Bio:
As a dedicated real estate professional and a long-time resident of the California Bay Area, I have been proudly serving the real estate community since 1987. My mission is to provide my clients with unparalleled professionalism, in-depth market knowledge, and a caring approach that has resulted in a business built almost entirely on referrals.
Your Trusted Real Estate Advisor in the Bay Area
I specialize in the vibrant and diverse real estate markets of Fremont, Campbell, San Jose, Saratoga, Cupertino, Sunnyvale, Morgan Hill, Santa Clara, Mountain View, and Milpitas, CA. With over three decades of experience, I have a deep understanding of these communities and can provide you with the insights you need to make informed decisions.
One of the most consistent compliments I receive from clients is about my responsiveness to their needs. Your goals are my top priority, and I am committed to being there for you every step of the way. I am honored to have been voted "Best of Milpitas" every year from 2000 to 2020, a testament to my dedication to my clients and my community.
About My Business: eXp Realty
As part of the innovative eXp Realty team, I bring a diverse set of skills and a commitment to excellence to every transaction. We leverage cutting-edge technology that is "beyond expectation" to provide you with a seamless and efficient real estate experience. My team and I offer the perfect balance of experience and professionalism to help you achieve your real estate dreams in the Bay Area.
Community Involvement
I believe in giving back to the community that has given me so much. I am a happily married mother of two and a proud grandmother to two beautiful granddaughters, Audrina and Chesney. In my free time, I enjoy golfing, exercising, and my weekly Bible study. I am also passionate about serving the homeless community in Milpitas and supporting our local businesses.
I would be honored to get to know you and your family and put my extensive real estate experience to work for you.
Credentials:
