Quote:
Originally Posted by Gerbs
The 1BR's that are cheap are there so they can advertise the 1BR condos starting at $499,999 pricing.
They're sold to friends/family of the developers first and then usually scooped up by a realtor since there's easy profits there on the cheapest units. It never makes it to public market.
Not sure why your friend is even looking at presales, he should be looking at the resale market atm. He can get a new build for the same price if not cheaper than a presale. If he doesn't have the money to buy today, he shouldn't buy a presale either.
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Developers have to sell to their own first in order to get the ball rolling. Lenders usually require 60% confirmed sold before releasing funds to even start digging the hole. That's a lot easier than having 2 hour lineups of random people who may or may not buy and buncha looky loo's nothing else better to do after lunch. Selling to their own basically cements financing for their development