With the Toronto condo market quickly setting sales on fire lately, many people have been asking about purchasing, and if they should consider a new condo vs an old condo in Toronto.
There are advantages to both – it really comes down to what your buying priorities are. Is the condo purchase for you to live in and enjoy for many years to come? Or is this an investment that you plan on renting out to tenants?
Advantages of Buying an Older Condo
Many clients shy away from buying an older condo because they sometimes lack the shiny, new, cool factor that many brand-new builds offer. But in our opinion, there are so many advantages to buying an old condo vs a new condo in Toronto. Let’s take a look at some that we think are critical to any purchase decisions.
Larger Floor Plans
To us, this is one of the biggest advantages you’ll find in looking for a condo in an older building. The floor plans you’ll find in a building that’s 10+ years old will be significantly larger than what new development offers today.
It’s not uncommon to find a 2-bedroom + den, 2-bathroom condo with a 1200 square foot floor plan. This gives you two proper sized bedrooms and a very large living space.
Today, we’re seeing some developers offer 2- or 3-bedroom floor plans at 700 square feet! There is a significant difference in what you get in older buildings so this could be a major consideration with weighing your options.
Bigger Opportunities to Add Value
Many think that renovations are purely for semis and detached homes, but trust us – the magic that can be worked in an old condo is endless.
If you’re looking to not only purchase a new home, but customize your finishes, look into an older condo. Renovating down to the studs isn’t something that’s just reserved for homes, and with the right contractors and even design help, you can have a custom condo that’s exactly what you’ve dreamed of.
A brand-new custom kitchen, new flooring, new bathrooms – it’s all possible with an older condo. Your options to purchase increase greatly if you go in with an open mind and some money available for a reno project. You’ll find that in the end, the value of your condo will increase tremendously, making it a good decision on all fronts.
Pride in Ownership
Many older buildings are filled with owner-occupied suites and not renters, so you’ll find many residents who have lived in the building for many, many years.
You won’t have too many in and out renters in older buildings, so you’ll really notice a pride in ownership in every aspect of the building.
The hallways are kept perfectly, balconies are maintained and not filled with junk, the staff have likely worked there for many years and are warm and welcoming. Not every building is like this but for the most part, we do find that with older buildings, you’ll get that warm homey feeling that many are looking for.
Disadvantages of Buying an Older Condo
We hate to admit it, but there are some disadvantages to buying in an older building. The biggest disadvantage we find is that maintenance fees are sometimes higher than expected. This could be due to refurbishment to the building common areas are taking place – a refreshed lobby, new patio furniture for the rooftop, new BBQ’s – all things that are needed and help keep the building fresh.
There are definitely things to watch out for in older buildings, and most major issues can be found in the status certificate. You’ll want to examine the status certificate prior to making any firm offer, or if you’re moving forward without a preview of it, at least make your offer conditional of status review. Here you’ll find any issues that may make you look elsewhere for an older condo in Toronto.
TRB’s Top Pick for Buying in an Older Building: DNA 1 @ 1 Shaw Street, King West
- Large floor plans
- Balconies & some terraces with CN Tower views
- Gas hook up for BBQ’s on balconies
- Easy building to work with for renovations
- Fantastic Views
- Good amenities
- Massive rooftop common area
Advantages to Buying a New Condo in Toronto
A lot of our clients love pre-construction, and so do we. There are advantages to buying pre-construction that cannot be denied, and for a lot of buyers, this is the only way to condo life in downtown Toronto. Let’s look at some of the advantages to buying a new condo in Toronto – better known as pre-construction.
Built-In Equity
The biggest advantage to buying pre-construction is the future value potential of your suite. Now, not every pre-construction condo offers this – many developers are starting to charge future value for condos and those are the ones you may want to take a pause on.
A good pre-construction purchase looks a little like an algebra equation – you need to be sure all of the values are correct in order to get the right answer.
We work with our clients to look at many factors when buying pre-construction and the first thing we examine are the numbers. Regardless if you’re an end user or an investor, the numbers must make sense.
And if they do, you’ll not only score on a custom condo built with the finishes you choose in a neighbourhood you love, you’ll be making money while the project is being developed. This is the biggest advantage to buying pre-construction.
Customization
Another major reason client’s love pre-construction is because you’ll get to pick your finishes based on the developer options. This means if you like dark and moody, you can get that. And if white and neutral tones are your thing you can get that too.
You usually have the choice between floor plans, floor level, exposure – all of the things that make condo living so important.
We’re even seeing developers starting to go that extra mile when it comes to customization. For example, at Brightwater Towns, you could choose how you want your third-floor flex space designed, there are a variety of layouts and the finishing packages are plentiful.
It’s nice to see the move from Option 1 and Option 2, to such variety, giving purchasers even more opportunities to create a home they love.
Investor Potential
May investors will only consider pre-construction because they can solely focus on the numbers. Money out versus money in, and which project is going to provide the best return.
It’s a safe way to get into the investor game in Toronto real estate, and there is no better way to maximize your investment dollars than with pre-construction condos.
Disadvantages of Buying a New Condo
The biggest disadvantage to buying a new condo vs an old condo is one that no one, regardless of who you are or how much money you have is – the waiting game.
Buying pre-construction means exactly that – pre-build. So you’re going to have to wait for the project to be developed, which can be anywhere from 3-4 years, and sometimes much longer than that depending on the developer.
Now there are ways around this that a lot of buyers don’t consider…but they should. Assignment Sales! If you don’t know what an Assignment Sale is, start here – The TRB Guide to Everything Assignments.
TRB’s Top Pick for Buying a New Condo in Toronto: Bridge House at Brightwater, Port Credit
- Large floor plans
- Good pricing
- New community development
- Exclusive amenities
- Extended deposit structure
- Exceptional VIP Broker incentives for their clients (us!)
- More info here: Bridge House at Brightwater
If you’re debating between buying a new condo vs an old condo in Toronto, are looking for old condo listings that we have our eye on or just want more information on the floor plans available at Oscar Residences, simply fill out our form or get in touch with Romey today – Romey@TorontoRealtyBoutique.com.
TRB Education Hub
Get the real estate resources you need to succeed. Visit our education hub for market insights, guides, podcasts and more.
