One of the biggest decisions of your life will be buying a home. It’s get a lot of entangled emotions – but you must understand that you need to do it right, because it’s a long term investment and a long term commitment. So, do not jump at the first opportunity you get. Do your research thoroughly.
Here’s what you need to know when you buy a presale condominium unit:
1. The project developers must provide you with the start and completion dates for your project. There are obviously unknown variables involved, but for project delays there is a 30 days period provided as a buffer. The developers must provide the buyers with a letter stating that the project is delayed and the new completion dates should be informed.
2. The project developer must also keep you informed of any changes in the estimated dates and such other facts. New projects are always subject to unanticipated delays and changes along the way.
3. A rescission period if given to each of the buyers. This is the time where you read the documentation, understand all the clauses and the new dates of completion of the project and then take a decision. You are also given an option to end your contract and receive your initial deposit.
4. All buyers place a 10 percent deposit. This becomes a part of your down payment. Some developers take more deposit and some take less – it all depends on the project at hand.
Potential risks – how to tackle
The very first thing to remember is to buy from a reputed buyer. This gives you the confidence that you are investing in something that adheres to quality standards and will be completed within stipulated time. Do some research and find out all the previous projects by this developer. If need be, talk to the owners.
Another important thing to remember is that a presale is not an actual purchase. It is a contractual agreement to buy the house when it is ready. So, find out how much mortgage you will get, and will you be able to afford it. You will also require a full down payment for the house.
There is no difference in the cost of the property if you buy from a developer or a real estate agent. So, make sure that you take advise. Real estate agents are more connected and internetworked in the industry and have the right knowledge to help you secure your desired condo unit at the most competitive price.
Also consult a lawyer and review your purchase for the size of the unit, finishing details, space, parking space and any additional costs or penalties that are involved. Understand what elements are mandatory and what are optional. Only then you can comfortably make a buying decision.
A presale purchase can help you seal the deal for your condo – investments. So make sure that you buy it from a reputed developer and take advice from a trusted real estate agent.
Buying a Home in Vancouver. Naz Allahyari is a Vancouver real estate agent and top Realtor® in Vancouver.
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