Want to invest in Condos in Vancouver? You have two main options. Presale and Resale. If you are thinking to put resources in a property which is yet to build then go for Presale and if you want to invest in a pre-constructed or pre-owned property then go for Resale. Considering to invest in a property depends on various factors and financial as well as mental state are one of those factors. Let’s dive into it in detail.
What is a Presale & How does it work?
Buying a property before construction or a property that is still under construction is known as a Presale Property. In this case, you are directly dealing with the developer or builder. You should also know about the “Assignment”. According to the Real Estate Council of British Columbia, an assignment is defined as follows:
“A contract assignment occurs when a buyer transfers the contract to buy property to someone else before the completion date. The buyer can transfer the contract for any price, even for a higher price than they paid for the property.”
In theory, the new buyer is buying a “resale” of a previous “presale”. Hence, the coined term “presale resale”.
What is the Resale Property?
Any property which is ready to move in or already constructed, Pre-owned is called Resale property. Here you will be buying from someone who has already purchased that property and there will be no direct contact with developer or builder. Investing in a Resale property is one of the oldest Real Estate practice.
Presale Vs Resale Property
There are many things that you need to know before your investments. We will discuss them systematically.
Purchasing a Pre Sale condo or Pre Construction Condos will bring you clean, fresh and modern apartments. These properties are not sold earlier to anyone else as you will be the first official owner. This will lead you to have a brand new Condo.
A resale property might come with the wear and tear as you are not the first owner of it. There might be some replacement or maintenance needed, depending on the conditions.
Always Get to know your Builder
For Presale, you will not have a physical appearance of the finished product so you can’t know about the built quality of the property. It is always good to know the reputation of your developer or builder.
For a Resale property, however, you can see the quality and condition of your property but to know about the developer is always a good move.
Presale property comes with a longer time frame. This means you might need to wait for 2-4 years to get the project completed, but patience is the key here.
The resale property, on the other hand, is ready to move in and you can get shifter whenever you want. This might save some of your time, but remember that it shall not always be new construction.
Typically Resale properties come with a lesser deposit structure than Presale properties. It may vary from 5-10%. Presale properties also allow you with a deposit structure as it comes with a recession period. You are not investing in the full amount at once. It gradually allows you with an increase in deposit due dates as you go step by step.
Customization in Presale & Resale
Presale condos or properties have an upper hand here as you are the first owner so you can have customization options as per your needs, whereas Resale properties are pre-built so there is no room for customization etc.
More Savings In Presale
There is a structured series of payments in Presale Condos so you will have more time to save for down payments at the time of completion of the project which is typically 3-5 years.
The resale property doesn’t allow you this much time.
GST Rebate In Presale
You can get a GST rebate over Presale property, which can be a concern for anyone, if you plan to live in the property after completion, you can apply for a GST rebate for properties under $400,000. This makes an investment in Presales easier and more profitable.
Before planning to invest in Presale or Resale property, get your homework done. Try to consider all the current development projects and consider locality, functionality and other aspects too. If you look overall market scenario then Presale properties have a bright future and there are many benefits of investing.
You get the privilege of a brand new Condo as well as you are the first owner of the property. You can also apply for GST rebates, which will keep your pocket safe. We here are Presales BC list only the trusted developers & properties so that you get the best out of your investment. Presales BC also allows buyers to earn a flat 25% cashback for their investments, if they buy through us.