If you’re looking to purchase a condo in Vancouver, is it better to buy a presale unit or a resale? First, let’s look at the difference between the two.
What Is A Presale Condo?
A presale condo is one which has not been built, or construction is not yet complete. The unit is purchased based on reviewing the builders plans and drawings of each different unit and the property. Sometimes, the developer may have a show suite or presentation centre where you can review the types of finishes available to you, along with architect renderings of what the units look like.
What Is A Resale Condo?
A resale condo is simply a condo that has been previously purchased and is already fully constructed. In this case, you don’t get to handpick your finishes since they are already there. Renovations may be needed to bring the unit to the buyer’s personal taste.
What Is The Upside To Buying A Presale Condo?
First, a presale condo will be brand new when you move in. It will have the builders 2-5-10 year warranty to protect the buyer against deficiencies and other types of breakdowns or repairs. And very often, the buyer gets to choose the finishes such as flooring, lighting, paint colors, cabinetry, and countertops. If you want a home that’s been built to include your personal preferences without having to renovate, a presale may be the answer.
What Is The Upside To Buying A Resale Condo?
Resale condos are already constructed, so moving in can happen much more quickly than in a presale unit. Resale units are not subject to GST, whereas, a presale unit will incur the 5% GST charge because it’s brand new. This can add thousands of dollars to the cost of buying, so make sure you factor that into your decision.
How Long Does It Take To Move Into A Presale Condo?
That depends on the stage of construction the building is in when you buy. If they’ve already started construction, it may only be a few weeks or months. If they have not yet started construction, it could be as long as two or three years, or more. The developer can give you an estimated completion date but bear in mind, most construction projects encounter delays. Frequently, the completion date has to be pushed back so make sure you have a back-up plan just in case.
How Long Does It Take To Move Into A Resale Unit?
This is negotiable and depends on the needs of both the buyer and seller. Sometimes it can be as quick as 30 days, or it can be as much as several months away. This can be worked out during the Offer/Counter Offer negotiations and a compromise can usually be reached.
Whichever type of unit you decide on, make sure you fully understand what you are buying. Review the Strata Plan, the Bylaws, and any other Rules and Regulations the Strata Corporation may have in place as these impact what you can do and how the property will be operated. Financial commitments for Strata Fees, Special Assessments, or Capital plans for funding the Depreciation Report also need to be considered, particularly on resale units.
Speak with an experienced Real Estate professional and ask them any questions you may have about Strata life.