The Hidden Costs of Shiny New Condos

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Is buying a brand new condo the right move for you? It might seem like a dream

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come true, but there are some hidden pitfalls to consider.

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You're listening to the

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Bo Knows Real Estate Podcast. Tips and advice for home buyers, sellers, and owners.

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With award-winning REMAX agent, Bo Kaufman.

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Are you thinking about buying a brand new condo? It's easy to see the appeal.

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Everything is shiny, modern, and untouched.

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But is it the right move for you?

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Today, we're diving into the pros and cons of buying a new condo and giving

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you the tools to make an informed decision. Let's get started.

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First, let's talk about the pros of buying brand new. One of the biggest draws

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of a new condo is its modern features and amenities.

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Think smart home technology, energy-efficient appliances, and sleek contemporary designs.

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Many new buildings offer gyms, rooftop patios, and co-working spaces.

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It's a lifestyle upgrade that's hard to resist.

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Another advantage is low maintenance costs, at least in the beginning.

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Everything is brand new and under warranty, so you won't have to worry about

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replacing appliances or dealing with major repairs for a few years.

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That's a big relief for many buyers.

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And let's not forget customization options. If you're buying during the pre-construction

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phase, you often get to choose finishes, layouts, and upgrades.

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It's a great way to make the space feel uniquely yours.

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Finally, there's the benefit of no wear and tear. You're the first owner,

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and there's something special about knowing everything is fresh and unused.

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But of course, it's not all smooth sailing. Let's dig into the cons,

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because this is where things get real.

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One major downside is the higher purchase price. New condos often come at a

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premium compared to resale units in the same area.

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You're paying for the newness, and that can stretch your budget.

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And here's something specific to Winnipeg that buyers need to know.

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Resale value drops in the first 5 to 10 years.

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When you buy a new condo, your unit is shiny and exciting.

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But as newer condos are built, your condo's newness fades, and your condo is

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no longer the latest and greatest on the market.

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The result? Your resale value often dips below what you originally paid.

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This is especially true in Winnipeg, where data shows that the resale value

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of condos sold 5 to 10 years after purchase has consistently declined. Why?

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Buyers continue to gravitate toward newer developments, while older units compete

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at a disadvantage. Combined with rising condo fees in an oversupplied market,

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the depreciation trend here is hard to ignore.

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Another issue is construction delays. If you're buying pre-construction,

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there's always a chance the completion date gets pushed back,

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sometimes by months or even years.

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That can be a huge inconvenience, especially if you've already made living arrangements

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based on the original timeline.

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Then, there's the risk of increased condo fees over time.

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Developers sometimes offer artificially low fees to attract buyers,

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but once the building is fully occupied, those fees often fail to cover the

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actual maintenance and repair costs.

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Finally, let's talk about market oversaturation.

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In areas with lots of new developments, the market can become flooded with condos,

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making it harder to sell your unit down the road.

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It's something to think about, especially in growing neighborhoods.

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So how can you navigate these challenges if you're set on buying a brand new condo?

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First, work with a realtor who can represent your interests.

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Developers have their priorities, and having a professional on your side can make a big difference.

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Second, research the developer. Check their track record for completing projects

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on time and delivering on their promises.

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Next, understand the market. Talk to a local expert about trends in your area,

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including resale values and demand.

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Finally, plan for long-term ownership.

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If you invest

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In a new condo, consider it a 10-year commitment to weather any initial dips in value.

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So is a brand new condo the right choice for you?

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It depends on your priorities. A brand new condo could be a great fit if you're

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drawn to modern features and low maintenance. But if resale value and flexibility

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are essential, you might want to consider other options.

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You've been listening to Bo Kaufman of REMAX Performance Realty.

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Are you thinking of buying or selling a house or a condo in Winnipeg?

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Call Bo at 204-333-2202. Remember, Bo knows real estate.