Essential Tips for Buying A Pre-constructed Condominium

by Kate Kennedy 06/23/2019

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
Author

Kate Kennedy

 

Kate Kennedy is welcomed by the Heyler Realty team as a sales professional specializing in the Westside of Los Angeles. Kate has developed the professional acumen specifically designed to advocate on the behalf of her real estate clientele. Living in Santa Monica, Kate appreciates first hand how special it is to live by the sea, and is committed to helping her clients find their own perfect place in the sun.

Having been raised the daughter of a lobsterman, Kate learned early on what “hard work” truly means.  Coupling her inherited strong work ethic with her entrepreneurial spirit, Kate decided to break out on her own and leave the snowy Maine coast bound for the sunny shores of California. 

To say there was a bit of culture shock was an understatement, but Kate is the type of a person that likes to make big bold moves, and embracing this challenge was no different.  It didn’t take long before Kate had settled herself in Santa Monica, finding the small town feel familiar and comforting- even if the ocean was on the “wrong” side.

 Once she established her new home, Kate quickly went to work building her business, “Kate K My Way.” For well over a decade, Kate has been running her exclusive personal assistant business which was built entirely from client referrals. Kate’s desire to help people and make a difference on a personal level is what made her stand out among the masses.  Her no-nonsense East Coast practicality is what helped her to get the job done, and done correctly. Kate employs these same principles to her work as a Realtor.

Living in Santa Monica and proudly serving her community as a Board Member of the Ocean Park Association, Kate appreciates first hand how special it is to live by the sea, and  is committed to helping her clients find their own perfect place in the sun. Her commitment to her clients is unwavering.   Kate’s communication skills, attention to detail and ability to focus on the big picture help to ensure easy transactions and positive results for her clients.  Above all Kate prides herself on her honesty, integrity and ability to bring good humor to all of her business dealings.

Outside the Office

Kate and her husband, Steve, live in the Ocean Park neighborhood of Santa Monica, and enjoy taking full advantage of all that west coast seaside living has to offer. As cheesy as it may sound, Kate really DOES love long walks on the beach, but you will have to get up very early in the morning to catch her down by Tower 26. Kate’s other interests include cooking for friends, attending local theatre, gardening, and reading science fiction and Stephen King novels.

Professional Accomplishments

Five Star Professional Rising Star Award 2019