Buying a presale can be an excellent way to secure yourself a home or make an investment that can gain momentum over time, while the property is still being completed. We've put together a small Q & A, all about presales!
How do I get started?
A realtor who is familiar with the process of presales will be able to guide you in the right direction. Generally presales will have a date where they begin selling off their units, and you and your realtor can attend the sales office and choose layout and go over contracts together.
How does it work?
Generally, you will be placing a smaller deposit down initially, and then paying a larger deposit over time in larger increments. When it comes time to take possession, you will need to obtain a mortgage for the property.
How long does it take?
It can take 1-3 years, sometimes more, to bring a project to completion.
What if I don't want to keep the unit I've put a deposit on?
Usually what will happen is you will need to pay a penalty, and sometimes, losing your entire deposit. Sometimes you can sell your unit before it's been completed, but it's also subject to a penalty. The penalties, fees and other information is found within your contract and will be clearly outlined.
Why should I invest in a presale?
Purchasing a presale can be a very advantageous move for someone who is looking at getting into the market, because the deposit can be paid over time, giving you a bit more financial flexibility. A lot of the time in Metro Vancouver, presales are worth more when they have completed than when you originally purchased them, so you have the ability to make money on your unit before it's even built. It also gives you an opportunity to get into an up and coming area for rental potential.
What are some of the risks?
There are some risks with presales. The most common one is a change in the market. This is a risk with most real estate transactions, but with the help of your realtor, you can have more confidence in making the right decision!
We've purchased presales in a few different up and coming neighborhoods within Metro Vancouver and would love to help guide you to your first presale! Call us to set up an appointment, 604-760-8995.