If you've been looking to invest in Vancouver real estate, you may have heard about pre-sales. Pre-sales are an opportunity for investors to buy into new developments before they even start construction. This allows for investors to get first dibs on properties that haven't even been built yet, which can be a great way of ensuring your investment is safe and secure over time. In this blog post, we'll break down what pre-sales are all about and why investing in this way might be worth your while.
What is a pre-sale property?
A pre-sale property is a newly constructed home that is still under construction. A developer enters into a purchase agreement with the homebuyer. The typical down payment is between 5% and 10% of the purchase price, with the remaining 10% to 15% paid in stages as the building is constructed. This down payment is stored in a trust account and will not be released to the builder until after the project is finished. All deposits are fully refundable if the developer decides to abandon the building project.
Pre-sales offer buyers an opportunity to buy new homes at discounted prices and get great value for their money. They also provide developers with stable cash flow and allow them to move forward with development timelines without depending on the whims of traditional lenders who may be hesitant about funding projects during periods of economic uncertainty.
Why should I invest in a pre-sale property?
There are many reasons to invest in a pre-sale property. Here are the most important:
You can get in at a lower price. The price of the finished condos will be higher than what you pay for your investment, and it’s possible that the price will increase even more before construction is complete.
You can get in before prices rise even further. If you’ve been waiting for years to buy a condo in Vancouver, then this is your chance! Prices have been rising steadily for years, and experts predict they will continue to do so as long as there isn't another housing crash like there was in 2008/2009.
Let us connect you with the right pre-sale property!
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You can find a wide range of pre-sales properties in Vancouver here, or just Give us a call at 604-679-5599 for more information.
Pre-sales are a great chance to invest in the Vancouver real estate market.
If you're looking to invest in real estate, pre-sales are the way to go. With a lower down payment, it's easier to get into the market and reap the benefits of Vancouver's hot housing market.
We hope that this article has provided you with some valuable information on pre-sale properties. If you are interested in learning more about Vancouver’s real estate market, or if you think this sounds like something for your portfolio, we can help.