Pre-Sale Condo Sales
Looking for Presale Condos in Vancouver, British Columbia Canada? Check out this Map of Pre-Sale Condo Sales!
What is a Pre-sale Condo?
Also known as new constructions, pre-constructions or new condos, a pre-sale condo is a condominium building (or any other kinds of residential buildings like townhouses) under construction in a real estate market that are sold before they are finished. The developments on sale are sold by either the developers or marketers hired to do so. Unsold homes in new buildings can also be referred to as pre-sale condos because investors or buyers purchase them when they are still brand new.
Why Invest in Pre-Sale Homes
There are several reasons why investors purchase pre-sale homes. Apart from the many benefits of buying a pre-sale home, there are also risks involved.
Possible Rise in the Value/Cost of Homes
Pre-sale residential homes are known to increase in value (appreciate) over the duration the building is developed and this can last up to three years. Buyers only pay deposits and complete their payments as well as other fees only when the construction of the building comes to an end. They get to resale the homes at a profit due to their appreciation values over the years.
Homes that are Brand New
Another factor that makes pre-sale homes very appealing is the fact that they are brand new and no one has ever lived in them.
Wider Choice of Homes
Nothing excites more than the wide selection of options when it comes to purchasing pre-sale homes. Investors get to choose the right kind of finishing they want within the home, views, floor plans, number of floors of the development, range of home sizes, customizations as well as spaces in the outdoors, among others. These options available for selection during pre-sale purchases are not as much as those available during resale of the same homes.
Access to the Latest Technologies and Trends
Pre-sales allow investors and buyers to access the latest technologies and trends in the real estate market. This results from the fact that new developments usually implement the latest trends in the construction industry, interior design and decoration as well as the methods used in constructing homes in the environment.
Enough Saving Time
Due to the fact that the fees for condos as well as mortgage and tax payments are made only after the construction of the development is completed, investors are allowed enough time to save for them. This makes pre-sales more appealing and affordable to the young as well as first time home buyers.
At least for ten years, pre-sale buyers should expect to spend less on the maintenance of the homes.
Pre-sale Condo Risks
Depreciation in the value of the home, delays in completion of the development, holding of deposits, likely alteration of terms put in place at the beginning and the demand for more money due to under-budgeting are some possible risks involved in pre-sale of homes. However, conducting a thorough research on the background of a developer offering home pre-sales, is a good way of ensuring that some of these risks are prevented.
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