What is a PRESALE?
A presale is when a developer offers condos to the market in some cases before construction of the building has started. Over the years, thousands of British Columbians have entered into contracts to buy new homes - you agree to buy a pre-sale unit, and you're entering into a contract for the right to receive the unit at a future date when the home is completed and ready for occupancy.
You only need to pay a deposit. You will still pay the full price, but you don’t need to take out a home loan on the property right away. You can think of it as you are “freezing” the current market price but having to mortgage it and make payments later. The deposit will range from 5% to 15% of the purchase price, and further 10% to 15% increments throughout the building project
This is usually a win-win transaction for both the homebuyer and the developer. Buyers are able to select the homes they want to buy and developers know, with some certainty, their ability to successfully market and finance the projects they are offering to the market.
Hot Vancouver real estate market
Once you have decided to invest into a presale, you need to be ready to sign the contract and put a deposit down as soon as you are aware and interested in the project. In many cases, the best suites are taken by either developer’s personal friends, employees, or family members. This close group of people is followed by presale specialists, like us, who get access to previews well before the general public know sales have begun. In this hot market, we can help as we have early VIP access to all presale projects here in Vancouver and can our buyers in to purchase far before the general public and other Realtors.
Five Unique Rewards of Buying a Presale Condo:
- You Own a brand new condo as soon as it is built.
- You can have alterations made to your specifications ahead of time so you walk into your own color scheme, appliances, and fixtures.
- Protection Warranty - All presale construction receives BC’s 2-5-10 Year Home Warranty Insurance. This warranty does not begin until the building is complete and, in most cases, assures the investor low costs and low hassles for the duration of the warranty.
- You can secure a cost at the buy date, think of it as ‘freezing’ the current market price, this gives you the possibility to profit from a rising land market, without the monthly expense of a mortgage payment, property charges, and upkeep fees.
- Lower Upkeep Costs - New condominiums built by legitimate developers will not require exorbitant repairs or upkeep with respect to an owner/investor for an extensive period after finish. The same can’t generally be said for more seasoned structures.