Often I get asked why someone who wants to live in their home would buy presale. Presale means you buy your home in advance of it being ready and sometimes even before construction has started. This can leave you in anticipation of moving into your home in some cases for up to 3 years, although 12-24 months is more common.

When you buy a new home there is no doubt that your excitement will be hard to manage as you will want to move into your new home right away. However, there can be some key benefits to buying presale if you can be patient.

More Choice

Depending on how early in the process you buy, you may have more selection to choose from. Additionally, buying early usually allows you greater options for customizations in your home. Most presale communities will offer a choice of colour palettes (think kitchen countertops, cabinets, flooring) for you to choose from. There are often other customizations as well which you can choose from whether it be changing your appliances, adding air conditioning, adding built-in closet organizers or shelving, even combining two homes and working with the architect – the list can be extensive depending on the builder. Regardless, buying presale will afford you more design and layout options than resale where you “take it or leave it”.

Plan Ahead

With every presale purchase you are always given an approximate closing date. This allows you time to plan your finances, and budget for increases in deposits, freeing up money which may be tied up in an account not yet at term, final closing costs, total down payment amounts, even new furniture for your home. Additionally, this extra time can be helpful with preparing to move and selling your current home if you need to. Buying presale cam afford you lots of time to plan ahead, purge, downsize, upsize, schedule your move and sell your home.

Hold an Interest Rate

If rates are expected to rise, many communities are also working with local banks so that not only can your purchase your home but you can be pre-approved and receive an interest rate hold. This gives you peace of mind knowing that although you may be a year or two from moving in you will have a solid handle on your mortgage costs and interest rate.

Owning New

Buying presale also means you are buying a brand new home to move into. Nobody else has lived in that home and it can be perfect and pristine and in all the latest design trends and styles. There is just something extra special about buying a brand new home similar to the high of buying a brand new car – there may not be a “new home smell” but the feeling is very much the same.

Cameron McNeill