Though the current state of the Canadian real estate market is a somewhat unpredictable one — due largely to inflation and rising interest rates spurred by the 0.5 per cent Bank of Canada increase announced last month— pre-sale remains a particularly good option for a number of reasons. From prime location to delayed mortgage payments, read on to learn why this option makes sense in today’s market.
Amenities and location
One of the biggest benefits of buying brand new is future-proofing your investment in a sense, as contemporary multi-residential properties often come with the latest in technical innovation — think smart parcel locker solutions and biometric entry. Keltic’s O2 Metrotown considers health and wellness too, incorporating air and water purification and even a steam shower into every unit.
Others, for example Format by Cressey, acknowledges the changing demands on the home and have incorporated amenities into common areas including co-working and maker’s spaces, a professional catering kitchen, barbecue stations, picnic seating and more. Developments such as these are often situated in active hubs next to grocery stores, restaurants, parks, retail and of course public transit that all but guarantees its desirability to owners and tenants alike.
As opposed to re-sale, where mortgage payments are due immediately following receipt of keys, pre-construction affords buyers time to save while their purchase is being built, which typically takes between two and five years in B.C. depending on individual project and external factors. Certain lenders, like Nest Mortgage, offer a robust rate drop guarantee where borrowers are guaranteed the lowest rate regardless of initial quote, up to 120 days.
Select companies also offer life, disability and critical illness coverage during the waiting period, helping give additional peace of mind for consumers.
Similarly, rather than having to produce an upfront down payment prior to signing the papers, a pre-sale unit requires a smaller deposit — that is paid in stages — according to an established schedule eventually totalling between 15 to 25 per cent of the total price. This proves especially popular with investors, as a low initial financial commitment can quickly yield a significant return when the value of the property appreciates between launch and completion.
A rescission period protects a new condo or townhouse buyer, reserving him or her the right to cancel the purchase in writing within a seven-day timeframe of officially agreeing to the sale. Legislated by the provincial government, it provides a window to perform due diligence and finalize the contract.
Consumers should double check and confirm the important details and consult their realtor if being represented, and/or their lawyer to review all pertinent documents. Some good questions to ask are those specific to maintenance fees, strata budgets, possession dates, rental regulations, parking and storage, and bylaws.
View MLA Canada's comprehensive listing of pre-sale projects available across southern B.C.