Thinking to get into Presale game as a homeowner or investor? Want to know more about it? You are at the right place.
So most of us nerds already know what Pre-sales are, but if you don’t, don’t worry, “I’ ll explain”
Pre-sales are real estate transactions where buyers purchase properties that are still under construction or have not yet been built. Buyers pay a deposit to secure the property, with the remainder of the purchase price due upon completion.
Now let’s talk about the BENEFITS of the Pre-sales.
Unlike in some countries where the presale condos model requires consumers to pay in full before construction even begins, buyers here in Vancouver and British Columbia only need to pay a deposit, usually around 5% to 10% on the purchase date. Because the final price is locked in on the purchase date, buyers do not need to immediately secure a mortgage and only need to worry about future deposit instalments.
Because buyers technically don’t own the home yet, only the right to the home once it’s completed, they also do not need to pay property taxes and maintenance fees for the home.
“You’re essentially free-riding the developer’s buying power, the financial cost, the holding cost, and developers are essentially paying the mortgage,”
