Cons of Buying Pre-Construction Condos:

  • 9 months ago
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Stationside Condos
  1. Blind Purchase: Purchasing a pre-construction condo means buying a property that hasn’t been built yet. Buyers have limited reference points, relying on the developer’s past projects and marketing materials.
  2. Delays: Construction projects, including condos, frequently encounter delays, so buyers should expect their condo’s completion to be postponed beyond the initially estimated timeline.
  3. Interim-Occupancy Living: During the interim-occupancy period, buyers are required to live in a building that is still under construction, which can be inconvenient and potentially disruptive.
  4. Cancellation Risk: In rare cases, developers may face difficulties completing a project, posing a risk to buyers who could lose their unit assignments and a portion of their deposit.
  5. Future Mortgage Rates: The mortgage for a pre-construction condo starts upon building completion, which means buyers must anticipate future mortgage rates. Banks can only guarantee the principal amount, and interest rates can typically be locked in for up to three months before the closing date, potentially exposing buyers to rate fluctuations.

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