If you're considering buying a presale condo, you’ve probably heard about the potential benefits—lower prices, brand-new units, and possible appreciation before you even move in. But before you jump in, there are a few crucial things to consider.
The presale market option can be rewarding, but it also comes with risks. That’s why we created the First-Time Home Buyers Course, where we break everything down in detail.
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That’s why our First Time Home Buyers Course—help you navigate these complexities with confidence. In the course, we break down everything step-by-step, including how to assess presale projects, key contract clauses, and financing tips so you don’t end up with unexpected surprises.
A presale condo is a property purchased before construction is complete. Buyers commit to the purchase based on floor plans, renderings, and developer promises. Typically, you put down a deposit and wait months—or even years—before moving in.
The idea is that by getting in early, you lock in today's prices and may see property appreciation by the time your unit is ready. But the journey from signing to moving in isn’t always smooth.
Let’s start with the positives—why do so many buyers opt for a presale rather than a resale condo?
Because you're locking in a price before the unit is built, there's an opportunity for the property value to rise before you even move in. If the market grows, you could find yourself owning a unit worth significantly more than what you originally paid.
Presales often require an initial deposit (usually 10-20%), but you won’t need a mortgage until the building is completed. This can give you time to save up or improve your financial situation.
Buying a presale means you’re the first owner. Everything is new, from the appliances to the flooring, and you usually get warranty coverage on major structural elements and appliances.
Depending on the developer, you may get to choose from different layouts, finishes, and color schemes to make the home your own.
While there are advantages, presale condos also come with significant risks. Here’s what you need to watch out for:
The real estate market can change drastically between the time you sign and when the unit is ready. If property values drop, you might be locked into a higher price than the market value.
Many projects get delayed due to supply chain issues, labor shortages, or permit problems. You may end up waiting much longer than expected to move in.
Even if you’re financially stable today, lenders assess your mortgage eligibility closer to the move-in date. If interest rates rise or your financial situation changes, securing a loan could be a challenge.
Some developers restrict assignments, meaning you can’t sell the unit before completion. This could be a problem if your circumstances change and you need to back out.
Floor plans and marketing brochures can be deceiving. Developers might make minor changes to layouts, materials, or even the building amenities by the time it’s done.
If you’re thinking about buying a presale, there are ways to mitigate risks and make a smart purchase:
Not all developers are created equal. Look into their track record—have they delivered past projects on time? Do they have good reviews? Have there been lawsuits or complaints?
Presale contracts are complex, and they typically favor the developer. Get legal advice before signing to ensure you understand:
Study the real estate market in the area. Are prices trending upward? Are there major developments or infrastructure projects that could affect demand?
Presale condos often come with unexpected costs, including:
What if you can’t qualify for a mortgage when the unit is ready? Consider alternative financing options, or ensure you have the ability to assign (sell) the contract before completion.
Presale condos can be a great opportunity if you do your homework, understand the risks, and have a solid plan. They offer the potential for appreciation, lower upfront costs, and a brand-new home, but they also come with uncertainties—market fluctuations, construction delays, and financing challenges.
That’s why our First Time Home Buyers Course—help you navigate these complexities with confidence. In the course, we break down everything step-by-step, including how to assess presale projects, key contract clauses, and financing tips so you don’t end up with unexpected surprises.
Still have questions? Book a 15-minute consultation with me today. Let’s go over your situation and see if a presale condo is the right move for you!
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