Presale New Construction Homes

Whether you are planning to buy a new condo, townhouse, or single-family detached home, it is always beneficial to buy a new home in its presale phase. This pre-sale phase comes before the actual selling of new home developments start and do not last very long. You own a new home at its lowest starting price, thus gaining maximum appreciation in the price over a period.

During the presale period which lasts only for a few days, some big developers offer a huge discount in the price, luxury name brand appliances, cabinets, windows, etc., and even some flexibility in the payments. Many builders have reported pre-selling almost 70%-80% of their inventory during the presale period. This applies to both entry-level condos and luxury penthouses. A serious buyer or an investor must grab this opportunity as soon as they can before it is over.

A presale is when a developer sells the units of the development before the construction is complete and often before construction has even begun. You, the buyer, are only responsible for an initial deposit of 5%-10% of the purchase price at the time of buy, and with another deposit of 10%-15% paid in installments during the construction period of the development. The developer provides you the important information on what is included with your purchase, the size of your suite, etc. This deposit money is held in a lawyer’s trust account until the completion of the project. The full deposit is returned to the buyer if the developer does not follow through with the construction of the project, for any reason.

Advantages of Presale Properties

Advantages of buying a new home in its pre-sale phase:

• You do not have to take out a mortgage on the property immediately when you purchase the right to a future property with an initial deposit. You secure the purchase with just a small deposit of 5%-10% of the purchase price.
• You lock in a price at the purchase date, with the possibility to benefit from a rising real estate market, without the expenses of monthly mortgage payments, property taxes, and maintenance fees.
  You take possession of a brand-new property upon completion. New built homes will usually not require costly repairs or maintenance for a considerable period after completion.
• All presale construction receives 2-5-10 Year Home Warranty Insurance. This warranty does not begin until the building is complete.
• It is easier to find tenants and rent out new homes. Modern design, new fixtures and appliances, the latest trend of amenities in newer buildings such as swimming pool, Gym/fitness centre, sauna and steam rooms, hot tubs, rooftop deck, theatre, multimedia room, etc. For the above reasons, the tenants are willing to pay a premium to rent a new constructed home/suite over an older unit.

You can contact Home Owner Protection Office if you have concerns or questions about a specific developer. Also, the Real Estate Development Marketing Act ensures a considerable level of protection for presale buyers.