When new condos are being built throughout a major city, and I am talking inundated with condos, do the prices go down?
I know that many people want to live in, or close to the city core, especially if they work there, so buying a condo downtown makes a lot of sense right? So what happens when there are an abundance of brand new condo sites to choose from? I personally think this might be the perfect opportunity to get an amazing condo with lots of extras thrown in. I would think that builders might even be ready to negotiate prices. But then I have to wonder, with all of these condos, how is resale value?
Is it now time to start looking a little north of the city? There are less condos to choose from in great areas. Could north of the city be a better investment, especially for resale? We were talking about this at our breakfast table last Sunday. One of my sons felt that the better investment is north, while my other son insists that no matter how many condos are going up in the city, there are always people who want to live downtown. He felt even for rental opportunities – buying a condo and renting it out – downtown was a better choice. That could be very true, however, my other son felt that for resale, north is the way to go.
I say that you have to make decisions based on your needs, expectations, and preferences of location. No matter where you decide to live, do your homework. Are you planning to live in your condo? Is this your final home, your stepping stone to something bigger, or an investment? These are the questions you need to answer before you make a decision. You also need to make sure that you are totally prepared for the process of buying a new home.