Buying a New Condo
Buying a New Condo and Buying a New Car: They’re More Similar than You May Think!
Thinking about buying a new condo can be overwhelming, especially when you’ve never done it before. I know, however, that it’s not as difficult or scary as it initially sounds. To get more comfortable with the idea of buying a new condo, you should think about it on a smaller scale. While there are plenty of differences between buying a new condo and buying a new car, there are also a shocking number of similarities! Thinking about a condo the same way you would about a potential vehicle is a great way to prepare yourself and ensure that you make the right decision.
How Buying a New Condo is Similar to Buying a New Car
- Buying a New Condo and Buying a New Car are Both Serious Purchases
Buying a new car requires a lot of researching, comparing, and planning; the same three main elements also apply when buying a new condo. You don’t want to purchase a new car (or a new condo) until you are sure that it is the right one for you. You will want to educate yourself on brands and models (or developers and specific complexes in the case of a condo). You should never settle for the first car or condo you see. While it may end up being the best choice, you’ll never know unless you look elsewhere and weight out the other options available.
You may want a fancy red Corvette, but remember that it may not be the most financially responsible or sensible decision for your lifestyle. Similarly, a brand new high-end condo unit in the North End with a great view of the park may be desirable and tempting, but if it’s more than you can afford and it makes your commute to work more difficult than it should be, it’s probably not the right one for you. A smart way to go about finding a condo is finding a few developers that you like and then looking for buildings created by them that are in the ideal price range and location for you.
This may all seem like a lot of work, but buying a new condo and buying a new car are both purchases that demand clarity of thought and solid decision making. Once you have gotten a loan or a mortgage and signed the papers, changing your mind will become a lot more complicated.
- Both a New Condo and a New Car Require Sufficient Funding
Speaking about mortgages and loans, you will want to get one in place before buying a new condo or a new car. You will not be able to purchase otherwise, unless, of course, you’re a billionaire! This is especially true for a pre-construction condo. In order to be reasonably considered, you will need to be pre-approved for the mortgage first. Mortgage pre-approval is something that you should typically seek out within your ten-day cooling off period [ https://www.trustcondos.ca/new-condos-ten-days-cooling-off-period/] of signing the contract; that way, you are able to back out without consequences if you find that you will be unable to fund the condo. A mortgage will undoubtedly be more than a car loan and the time it takes to pay it off will be longer, but the idea is similar. When buying a new condo or a new car, you will need to borrow the money and pay interest on the sum; without it, your purchase will simply be out of reach.
- You’ll Want to Go to a Professional that You Can Trust Before Buying a New Condo or a New Car
When buying a new car, it is important to go to a dealer that isn’t going to try to sell you a car that isn’t right for you just because they want to make the sale. Wouldn’t you rather purchase from somebody who is honest and cares about your needs, whether you ultimately decide to buy from them or not? Of course you would! This is how you should also look for a real estate agent. While you will not be buying a new condo directly from the agent, they will help you find places within your price range and your style. A condo real estate agent’s priority should be aiding you in your search and making you happy. Just as you would look at reviews of dealerships and “shop around,” you should seek out previous clients’ experiences with a few different real estate agents and pick the one that you feel most comfortable with.
An Important Difference between Buying a New Condo and Buying a New Car
There are certainly many similarities between buying a new condo and a new car, but we should not overlook the differences, particularly a big one! You probably already know that a car’s value starts to go down the moment you buy it and drive it home. While this is disappointing, it is true. You may be able to sell a car that you once bought new, but unfortunately, you will only be able to get back a fraction of the money you paid for it. Condos, however, are different.
Don’t get me wrong – the real estate market price of a condo can sink, as well. Thankfully, unlike with cars, depreciation is not the rule-of-thumb. In fact, the value of a condo is likely to increase, especially in a place like Toronto or the surrounding GTA where units are becoming more and more popular. In this way, buying a new condo is even better than buying a new car, even if it is a bigger purchase! In order to see a larger appreciation in your condo’s value, you will want to hold onto it for at least a five-year minimum, but try to keep it for a few years more if possible.
Contact Me for More Information on Buying a New Condo
I don’t have all of the knowledge necessary to advise you on which new car you should buy, but I DO have the expertise required to find you the perfect new condo! If you’re on the hunt and are looking at buying a new condo, call me at 647-519-5751 or send an e-mail to email@example.com. I’d be glad to chat, answer any questions, and direct you towards new condos that will make for smart purchases.
If you would like to discuss more about a buying a new condo in GTA in detail and have any questions, please book an appointment with Arshad Hussain. A trusted name in Toronto pre-construction real estate.