Category Archives: How To Buy a Pre Sale Condo in Vancouver

Detailed information in a series of Videos on How to Buy a Presale or Pre-Construction property in Vancouver, BC, Canada with Mike Stewart, a Top Vancouver Realtor.

How to Buy Vancouver Condo Presales 3 | Disadvantages & Risks

Posted on July 30, 2012 by mike

The Disadvantages and Risks of Buying a Pre-Construction Condo in Vancouver

In Episode 2 of How to Buy Vancouver Condo Presales, we talked about the advantages of condo presales for Owner/Occupiers. In Episode 1 we discussed the advantages of pre-construction condos for investors in Vancouver.

Today we’re going to discuss the disadvantages of pre-construction or presale condos in Vancouver for both investors and owner occupiers and what to watch out for with this kind of property.

Rights and Obligations with Presale Condos

When buying pre-construction condos Vancouver in Vancouver, its easy to overlook the potential negative aspects of this type of purchase or investment (especially for first time home buyers!)

Purchasing a presale condo is not the actual physical purchase of a tangible property. Its actually a contract for the right to receive and obligation to pay for a finished condo at a set point in the future, irrespective of market conditions or the buyers financial situation.

What are the Risks & Disadvantages of Presale Condos in Vancouver? Continue reading →

Posted in: For Buyers, How To Buy a Pre Sale Condo in Vancouver
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An Answer to Florin’s Question: Can a Presale Bought High Ratio be Completed on Low Ratio?

Posted on June 13, 2012 by mike

Financial Leverage and Presale Condos in Vancouver

I LOVE Questions and Comments on my blog posts and appreciate them HUGELY!!

We recently had a great question (Thanks Again Florin!) in the comments section of Episode 2 of How to Buy a Presale Condo where we discussed the advantages of pre-construction condos for Owner/Occupiers.

This question was SOOOO GOOD, I decided to bring in a mortgage broker, Chad Watts and shoot an entire video on this topic!

Florins Question:

I asked my mortgage specialist about point 3 “Financial Leverage.” The one where you mentioned “buyer who previously was a high ratio borrower to become a low ratio borrower” if the property value goes up. She told me that this in not the case anymore. The bank will only base the financing on the purchase price of the home. Is this correct and if so is this true to all banks?

The mortgage specialist Florin spoke to is right.

There are rules restricting lenders from giving a mortgage on the actual market value of a presale condo if it has gone up in value from when it was purchased pre-construction to when it completes.

BUT, this does not mean the buyer of a presale condo in Vancouver cannot leverage the increase in value of the property between the time of purchase and the completion date.

Can a Presale Bought High Ratio be Completed on Low Ratio? Yes, in a Roundabout Way!

This only works when the presale Continue reading →

Posted in: For Buyers, How To Buy a Pre Sale Condo in Vancouver, Vancouver Real Estate and Mortgage Financing
Tags: Are Presale Condos a Good Option in BC, Chad Watts Mortgage Broker, Completing on a Presale Condo, Financial Leverage and Presale Condos in Vancouver, High Ratio Presales, How Muhc are Presale Condos Worth, Low Ratio Presales, Market Analysis on Presale Condos, Presale Condo Advice, Presale Condos and Mortgages, Presale Condos in Vancouver, Presale Condos Vancouver, Presale Realtor, Should I Get a Realtor for Presale, Vancouver BC Presale Condo, Vancouver Condo Presale, Vancouver Condo Presales, Vancouver Investment Properties, Vancouver Presale Condos, Vancouver Presale Condos for Investors, Vancouver Presales
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How to Buy a Pre-Construction Condo 2 | Advantages for Owner/Occupiers

Posted on December 5, 2011 by mike

Presale Condos in Vancouver – Advantages for Owner/Occupiers?

In Episode 1 of How to Buy a Pre-Construction Condo in Vancouver, we discussed the advantages of Presale Condos for Investors. Today, we’re going to discuss the advantages pre-construction or off plan condos have for Buyers who intend to live in the property once its completed.

As with investors buyers, presales are not for every Buyer who intends to occupy the property, but they can very good for many buyers.

6 Advantages of Presale Condos for Owner Occupiers -

Selection & Customization – For owner occupiers, the pre-construction purchase Continue reading →

Posted in: For Buyers, How To Buy a Pre Sale Condo in Vancouver, Vancouver Condo Pre-Sales
Tags: Benefits of Buying Presale, Buying a Pre Developed Property, Buying a Predeveloped Property, Buying a Presale Condo, Buying Pre-Development Properties Vancouver, Off Plan Condos For Sale Vancouver, Off Plan Condos Vancouver, Pre Sale Condo for First Home Buyer, Pre-Construction Condos, Presale Condos for Owner Occupiers, Things to Consider Buying Presale Condo in Vancouver, Vancouver Apartment Presale, Vancouver Condo Development, What is a Presale, Why are Homes Sold as Presales?, Why buy a New Condo in Vancouver, Why buy a New House in Vancouver, Why Buy a Pre Sale in Vancouver, Why Buy a Presale, Why Buy a Presale Condo in Vancouver, Why do Poeple Buy Presale Condo
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Presale Condo Completions in Vancouver – Avoiding Penalties!

Posted on October 31, 2011 by mike

Completing on a Presale Condo in Vancouver and Appraisals.

I recently had the pleasure of interviewing Chad Watts of The Mortgage Group about an experience he had during the the Completion of a Pre-Sale Condo here in beautiful Vancouver, BC.

Developers in many cases only give 10 days notice of the Completion of a Presale Condo. During this time sometimes up to several hundred appraisers need to get access to and appraise the soon to be Completed suites.

(Not sure what an appraiser is? Check out this great explanation with video on What is an Appraisal!)

What does Completion mean in Relation to Condo Presales? Continue reading →