Quote:
Originally Posted by Hondaracer
however, prices become so that why the fuck would you buy a brand new unit at XXX when you can buy a 5 year old unit for 15-30% less for essentially the same building?
When prices reach those levels and older units begin to stay on the market, that "equity" you built by having new units go for higher prices than what you paid is essentially gone, and multiple units within the same complex staying on the market for extended periods of time = bye bye equity
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Actually, I have the completely opposite mindset, although I don't think 5 year old units are 15 - 30% cheaper than the new ones.
My thinking goes -- if there is a brand new building right next to the 5 y.o. one that I am interested in, why would I want to buy that 5 y.o. building for just a bit less money? The 5 y.o. building has 2 of its warranties run out already, and I will probably need to do at least some minor reno / painting / touch ups before I can move it. I might as well grab something new.
Not sure how others view this though.