Presales with GVRE.
Frequently Asked Questions
What are Vancouver Presales and Why should you buy one?
Greater Vancouver new presales (or Vancouver presale townhouses) is a market that allows for great purchasing opportunities for buyers. These buyers can be looking for homes in Vancouver, or those looking to invest in real estate with presales. Presale markets differ from the traditional resale market, and we have compiled information that can help outline the process and the advantages or disadvantages of Presley for potential buyers.
What is a Vancouver
Presale?
Note:
Deposit structures vary for each presale property and we can assist you in finding out more information, and negotiating the best terms for you.
What is a Vancouver Presale? A presale condo, or presale townhouse is when a developer sells units of a development before it has been built, and in most cases, often before construction has even started. As a buyer of a presale unit, you are purchasing the ownership of your unit in the future property. While you are responsible for the full purchase price, in preconstruction and construction (when the building is being built) you do not have to take a mortgage out, but your are responsible to pay a deposit. Deposits for presale condos in Vancouver usually range from 5-10% of the total purchase price, with another 10-15% due in instalments over the course of the construction period. Your deposit isn’t released to the developer, it is held in a trust account until the building is complete for peace of mind. If the developer fails to follow through with the project, your full deposit will be returned.
Why would anyone buy a condo that doesn’t exist yet? The answer really depends on your goals, we will go more in depth below, however there are three key points that interest all potential buyers of presale condos in Vancouver:
• Presale condos allow you to take possession of a brand new property upon completion
• Buying a presale condo in Vancouver allows you to have the potential to customize your unit in ways that are unavailable to you in a resale market
• When you purchase a presale condo, you “lock in” your price at purchase date, which is a great benefit in a hot real estate market. All of this without the cost of mortgage payments, property taxes, and maintenance fees until completion.
Why Would I Buy a Condo That Doesn't Exist Yet?
Note:
Buying a presale property can be a great way to get into the Vancouver real estate market with a lower entry fee in the form of deposit and a future completion date.
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If the presale condo doesn’t exist,
is it safe to buy?
The Greater Vancouver presale market and the presale market in British Columbia falls under the governing of the Real Estate Development Marketing Act and prioritizes protection of the buyers. In addition to having a regulated marketplace, as a buyer you should be aware of 3 important points regarding presale properties.
You Can Cancel Within 7 Days
As a buyer, you have a 7 day period after an accepted offer to cancel the contract. This 7 day period to cancel a presale contract is known as the “7 day recession period.” Having the ability to cancel in this time for any reason at all is beneficial as it offers you peace of mind knowing that if you’re worried about financing in the future, decide you don’t like the property or you put all your money on black at the casino, you have the right to cancel the contract right there and then.
Your Deposit is Safe
Your deposit is held in trust, and not sent to the developer until the completion of the property. This means that should a problem arise with with construction or the developer declares bankruptcy, your deposit will be returned in full.
You'll Know Your Purchase
The developer will provide you with a Disclosure Statement, which outlines important information regarding the property, such as what’s included in your purchase, the size of your unit and what the property will look like upon completion
