Property has always been a wise investment. In British Columbia, however, there may be better times to purchase real estate. Some people have gotten on the bandwagon to purchase pre-sale condos, which have gained popularity over the last few years. But in light of the current situation economically, is now a good time to buy a pre-sale condo?
A financial planner with Foundation Wealth says sticking to the pre-existing condo market may be a better move than signing on the dotted line for a pre-sale. He says there are a number of reasons for that rationale — primarily the premium that is attached to a pre-sale, not to mention the GST on new construction. Pre-sales also come with a number of unpredictable variables, such as delays, design changes and even possible developer bankruptcies.
There is no lack of inventory for existing condos in British Columbia. Prices are generally affordable and make a good buy for a first-time purchaser or for those looking to downsize. It also may be easier to negotiate on price and extras with an individual condo owner rather than with a developer.
Buying real estate can be exciting, but the laws that govern contracts can be confusing. There are particular laws that are associated with the purchase of both existing and pre-existing condos in British Columbia. Having some idea of what those laws mean before making major decisions is a must. Getting a lawyer experienced in those laws to weigh in on potential deals may mean the difference between a positive deal and one that goes sideways.