Real Estate industry in the eyes of investors has many opportunities and one of those is Presale or Pre-construction (in some region they call it Precon.
As the Provincial Government in British Columbia and local municipality in Vancouver are trying to create density and more homes to increase affordability, the number and variety of development project in offering presale and pre-construction on the rise.
However, again with many demand and yet limited availability, when a project is announced, the number of registration surpasses the number of units available.
Here are some questions my client asked in regards to presale and new development projects so I thought I could share with you.
What to look when buying a presale?
The most important thing to start to review is the developer reputation and background on their experience.
Depending on how extensive the new development is, developer's reputation and experience in that scope of project is very important. When a first time new home buyer is looking at a large development with many phases and a complex design, it's best to see if the developer has done similar scope of project before and if there was any issues.
The buyers also can review the history of developers by searching online to see if there was any issues with the existing developments or any pending lawsuit against those.
As a buyer of a new development and presale, it is also important to review the disclosure and all relevant documents to the project. also the quality of material on A1kit.
My recommendation is to attend the sales center and do a walkthrough on the model homes and browse and touch the quality of material, review the appliances brands and notice
- Light fixtures
- Window covering
- Flooring material and colour choices
- Ceiling height
- Number of closets and storage in the unit
- Floorplan layout
- Quality of countertops and vanities in kitchen and bathroom
- And even get picky with the quality of knobs on the cabinetry
It is important to find out and ask for
- Is the parking included in the purchase and whether it offers proper EV charge for electric vehicles
- Is the external storage included in the purchase
- Number of amenities in the building and whether they are included in your monthly strata payment.
- What is the heating and cooling system in the building and if there are saving you money
- Direction of unit and what is the projection view
- What are the amenities close by
- If the view is open, would there be any upcoming project or another phase which would block the existing view of the presale home
In the next article we talk further on Presale and preconstruction homes process.