Discover the Advantages of purchasing pre-construction condominiums
Unlike a mortgage, you don’t even have to pay the whole down payment right away. Buying a pre-construction condo gives you the freedom to pay your down payment over the course of the first year of ownership, which means you have more time to come up with the down payment before they start building your brand new condo. This is especially appealing for first-time buyers and investors who are looking to break into the real estate game or are just looking to upgrade from their current unit.
The benefits of buying a pre-construction condo
You’re not only saving money, but buying brand new, and paying the lowest possible price. The value of your unit starts to appreciate right from the time you sign your purchase and sale agreement. See some major advantages.
Low Ownership Costs
Newer properties tend to be more energy efficient than older properties which keeps utility costs low for completed presale condos. Furthermore, during the 2/5/10 Warranty Period, there is a very small chance a Buyer of a completed preconstruction condo will have to pay high maintenance fees or large assessments to repair the building.
Selection & Customization
For owner-occupiers, the pre-construction purchase of a condo allows for, in many cases, a level of variety and customization not available on the resale property market. Want a 8th level view suite with 2 parking spaces and or an extra storage lockers? Want a studio? How about a 1 bedroom suite, or a 2 bedroom you can customize to suit your style? Chances are you can get exactly what you want by buying a pre-construction condo.
Owner occupiers buying a preconstruction condo in a rising market also can benefit financially. The buyer may have bought the preconstruction at a time when real estate prices were lower than when the property completes. This may allow the buyer who previously was a high ratio borrower to become a low ratio borrower thus saving thousands of dollars in Mortgage Insurance premiums.
Leverage for Non-Canadian Residents
Normally Non-Canadian residents have to put down a 35% non-payment (please confirm with a mortgage broker) when buying an existing property in Vancouver/Victoria all at the time of purchase. When one buys a presale in Vancouver/Victoria the deposits usually 20% irrespective of country residence.
An owner-occupier can put a small deposit down on a preconstruction and continuing living in their existing home until the preconstruction condo is ready for occupation. Any issues with the newly completed property should be covered by the 1-year developer’s warranty.
Newness & Warranty
Many buyers enjoy being the first owner of a product be it a car, a handbag, or a condo. Preconstruction offer guaranteed newness when purchasing a property. Newness, in most cases, means all the mechanical and other systems are at the beginning of their life and should perform as expected and not need repairs or replacement for 15 to 25 years.
Owner/Occupiers can rest easy knowing that they are covered by the BC Government administered 2-5-10 year warranty program.