If you are interested in buying a brand new condo in BC and are considering buying a presale it’s important to have a full understanding of what you are buying.\u00a0 There are some significant differences to buying them opposed to other types of real estate.<\/p>\n
Note that in Vancouver and surrounding municipalities such as Burnaby, Surrey and North Vancouver, VIP sales for new developments typically start before construction is even started and the developer will often be required to sell a certain percentage of units before they can get construction financing.<\/p>\n
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1.) You Only Pay The Deposit<\/strong><\/p>\n The amount of the deposit and the payment schedule will vary depending on the Developer and the type of project, but generally speaking the longer the time until completion, the higher the deposit will be. Deposits can range from as little as 5% to as high as 25%, but Foreign Nationals may have to pay even more.\u00a0 No other monies are paid until completion and at that time your mortgage will kick in.<\/p>\n <\/p>\n 2.) Your Deposit is Safe<\/strong><\/p>\n Your deposit is held in a trust account or guaranteed by a Deposit Protection Contract.\u00a0 If, in the unlikely event that the project does not complete your deposit will be returned to you.<\/p>\n <\/p>\n 3.) Time Until Completion<\/strong><\/p>\n You could be waiting many months or even several years before your home is built.\u00a0\u00a0 Most lowrise buildings usually take 24 months or so to complete and highrises can take 2.5 to 4+ years depending on the complexity and height of the building.<\/p>\n NOTE: developers only offer an estimated date range for completion and this is not a guarantee, and often projects in the Lower mainland are delayed.<\/p>\n <\/p>\n