Quote:
Originally Posted by Tapioca
What's the difference in price between the pre-sale and the value of the condos you're bidding on? If the difference is small to nil, that pre-sale will cost you more once you factor in GST and the mortgage you will sign onto in 2 years. Interest rates have nowhere to go but up and in 2 years, you will most certainly pay at least 0.5% or more. That pre-sale condo will also likely be smaller than current units on the market and will be built and constructed more poorly than what you're looking at.
Another strategy you could employ is to buy a pre-sale at 15% down, then continue shopping for a better older unit. Keep 5%, apply for the BC HOME ownership program to bump up your own payment, and make an offer for an older unit you like. Assign the pre-sale to someone else before you have to complete the sale in 2 years and take the profit and pay off your BC HOME loan. Risky, but worth thinking about.
|
The difference isn't huge between the presale and a condo that is 5 to 10 years old. It is a similar price range for New West. You are correct, that once you add in GST and a potentially higher interest rate, it makes it more expensive than purchasing an older home. Problem is, with such low inventory, we haven't found much that we like over the past 4 months, and what we do like is snapped up for ridiculous amounts.
I suppose from my viewpoint, is it better to slightly overpay for a presale (due to GST) and get exactly the floorplan, location, and finishings that we want? Or just wait and see if further inventory comes down the line this summer/fall? It's a hard decision and nobody has a crystal ball.