{"id":31,"date":"2017-03-15T22:44:36","date_gmt":"2017-03-16T05:44:36","guid":{"rendered":"http:\/\/www.nestpresales.com\/blog\/?p=31"},"modified":"2017-05-22T15:17:36","modified_gmt":"2017-05-22T22:17:36","slug":"what-are-condo-presales","status":"publish","type":"post","link":"https:\/\/www.nestpresales.com\/blog\/what-are-condo-presales\/","title":{"rendered":"What Are Condo Presales?"},"content":{"rendered":"<h2>Buying Preconstruction Homes In Vancouver &#8211; What Are Condo Presales?<\/h2>\n<p>Also known as Pre-construction Condos or Off Plan Investments, a condo presale is a contract to purchase a brand new home before construction is completed.\u00a0Note that in Vancouver and surrounding municipalities, advance sales for new developments typically start before construction is even started and the developer may be required to sell a certain percentage of units before construction financing and building permits are in place. Most lowrise buildings usually take 18 to 24 months to complete and highrises can take 2.5 to 4+ years depending on the complexity and height of the building.<\/p>\n<p>When buying a preconstruction home in Vancouver, BC, the Buyer signs a presale contract and pays a deposit, or a series of deposits. \u00a0The contract is a legally binding agreement and the Buyer is obligated to complete the purchase once the unit is constructed. \u00a0On completion the remaining balance can be mortgaged. It&#8217;s important to understand that you are not purchasing real estate because the property doesn&#8217;t actually exist yet. \u00a0In essence you are promising to buy a home in the future and the developer is promising to deliver that home at a specific price.<\/p>\n<h3>What Information Will The Developer Provide\u00a0When I Buy A Condo Presale?<\/h3>\n<p>For most new developments \u00a0there will be a sales centre including\u00a0a\u00a0show home which is a mock up of one of the floorplans. There will also be architectural models, feature sheets, floorplans and samples of finishing options. \u00a0There are also usually\u00a0design renderings and view approximations. \u00a0 You can also ask to look at the architectural drawings. However, some very small projects will not have a\u00a0sales centre at all in which case you may only have plans and drawings to look at. \u00a0In every case the developer is also required to give you a copy of the disclosure statement BEFORE you sign a contract.<\/p>\n<h3><strong>New Construction Condos Are Incredibly Popular in Greater Vancouver! \u00a0Why?<\/strong><\/h3>\n<h3>10\u00a0Reasons to Buy a Condo Presale:<\/h3>\n<p><strong>#1.) New Home come with a full 2\/5\/10 new home warranty. \u00a0<\/strong><\/p>\n<p>Buyers appreciate the fact that the unit and\u00a0common areas are covered by a standard warranty and that everything, including the appliances are brand new. \u00a0<strong><a href=\"https:\/\/www.bchousing.org\/licensing-consumer-services\/new-homes\/home-warranty-insurance-new-homes\">Find Out More About BC&#8217;s 2\/5\/10 Warranty Coverage<\/a><\/strong>; \u00a0it\u2019s the strongest construction defect insurance in Canada.<\/p>\n<p><strong>2.) Better\u00a0Selection and Price:\u00a0\u00a0<\/strong><\/p>\n<p>Buyers who purchase early, particularly at VIP sales events, will get the best selection and prices and in some cases the ability to customize or even combine units.<\/p>\n<p><strong>3.) Buying a Presale is Easier Than Buying an Existing Home:<\/strong><\/p>\n<p>Buyer&#8217;s are frustrated with low inventory levels of existing homes for sale on the Vancouver MLS system.\u00a0\u00a0In most categories there is very\u00a0 limited choice of homes for sale. \u00a0Whenever a good home becomes available there is often competition from other buyers and multiple offers are common on resale homes. \u00a0In many ways\u00a0buying a condo presale is a lot easier than competing against multiple offers because there are many units for sale in the building at one time.<\/p>\n<p><strong>4.) Time to Save: <\/strong><\/p>\n<p>Some Buyers want\u00a0the ability to lock in their home and then have months or years to save until completion.<\/p>\n<p><strong>5.) Presale Contracts Are Usually Assignable:<\/strong><\/p>\n<p>Many investors buy presales with the hope\u00a0of assigning (flipping) the contract at a profit before completion. \u00a0Note: that not all presales are assignable and the developer will charge an assignment fee. \u00a0At this time the 15% Foreign Buyer&#8217;s Tax would not be applied to profits from an assignment.<\/p>\n<p><strong>6.) Rental Income on Newer Buildings Is Higher:<\/strong><\/p>\n<p>Investors who \u00a0intend to hold onto the property and rent it out anticipate the rents will be higher on a new building.<\/p>\n<p><strong>7.) Rising Market Appreciation: <\/strong><\/p>\n<p>Investors can leverage a relatively small deposit with the hope that the home will be worth more on completion than what they agreed to pay in the contract.<\/p>\n<p><strong>8.) Rentals Are Allowed:\u00a0<\/strong><\/p>\n<p>Most new buildings have less restrictions on rentals compared to older condos which often have tight restrictions on the number of rentals or allow no rentals at all. \u00a0When you buy a condo presale you will be given a rental disclosure statement which clearly spells out whether the unit can be rented out and which also gives assurance that the rental \u00a0bylaws of the strata cannot be changed until the date indicated on the statement.<\/p>\n<p><strong>9.) Location, Location, Location:<\/strong><\/p>\n<p>Cities in the Lower Mainland are more likely to approve new construction projects with higher density along Skytrain routes and major corridors so we are seeing lots of new developments\u00a0and master planned communities pop up around these highly desired areas. \u00a0These neighbourhoods\u00a0not only have easy transit options but have a host of services, shops and restaurants that Buyer&#8217;s love.<\/p>\n<p><strong>10.) New Home Property Transfer Tax Exemption:<\/strong><\/p>\n<p>Canadian residents or permanent residents who buy a new home with a fair market value of $750,000 or less and who intend to live in it as their principal residence may qualify for an exemption of the PTT. \u00a0There is a partial PTT exemption on homes values fro $750,000 to $800,000)<\/p>\n<p>See if you qualify for the <strong><a href=\"http:\/\/www2.gov.bc.ca\/gov\/content\/taxes\/property-taxes\/property-transfer-tax\/understand\/exemptions\/newly-built-home-exemption\">Newly Build Home Exemption<\/a><\/strong><\/p>\n<h3>What Is REDMA?<\/h3>\n<p><strong><a href=\"http:\/\/www.bclaws.ca\/Recon\/document\/ID\/freeside\/00_04041_01\">The Real Estate Development and Marketing Act<\/a><\/strong>\u00a0(REDMA) is legislation that regulates the sale\u00a0of new developments.<\/p>\n<p>Some Key Parts:<\/p>\n<p><strong>7 Day Right of Rescission:<\/strong> \u00a0Buyers have a cooling off period and can cancel their contract (for any reason) and get their deposit back within the first 7 days after acceptance.<\/p>\n<p><strong>Deposits:<\/strong> \u00a0Must be held in a Lawyer&#8217;s trust account or be guaranteed by a deposit protection contract provided by a third party insurer.<\/p>\n<p><strong>Developer&#8217;s Disclosure Statement:<\/strong> Before you sign the contract you will be given this document which includes extensive information about the development.<\/p>\n<p>If you are considering purchasing a condo presale in Greater Vancouver feel free to <a href=\"http:\/\/www.nestpresales.com\/contact\">contact us<\/a> or better yet schedule a consultation with a Nest Presales New Home Specialist.<\/p>\n<h3>Click Here To See a list of Vancouver Condo Presales<\/h3>\n","protected":false},"excerpt":{"rendered":"<p>Buying Preconstruction Homes In Vancouver &#8211; What Are Condo Presales? Also known as Pre-construction Condos or Off Plan Investments, a condo presale is a contract to &hellip;<\/p>\n","protected":false},"author":2,"featured_media":43,"comment_status":"open","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[13,8,15,17,16,7,14],"class_list":["post-31","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-condo-presales","tag-2510-warranty","tag-condo-presales","tag-disclosure-statement","tag-newly-built-home-exemption","tag-presale-assignments","tag-redma","tag-right-of-rescission"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Are Condo Presales?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.nestpresales.com\/blog\/what-are-condo-presales\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Are Condo Presales?\" \/>\n<meta property=\"og:description\" content=\"Buying Preconstruction Homes In Vancouver &#8211; What Are Condo Presales? 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