Should you buy a condo before construction is complete, or choose an existing home you can walk through today?For buyers in North Vancouver, the answer depends on budget, timing and how much certainty you need. A new kitchen is appealing, but financing, monthly costs and the actual layout deserve just as much attention.

What Is the Difference?

A presale condo is purchased before construction is finished, based on plans, specifications and the developer’s contract.A resale condo is an existing property purchased from its current owner. You can inspect the actual suite and review the building’s operating history.

          

Not necessarily. Compare the total purchase cost, including taxes, parking, storage, upgrades and closing expenses.

New housing is generally subject to GST, while ordinary previously occupied residential resales are generally exempt.

 

Eligible first time buyers may qualify for a GST rebate on a new home, subject to specific requirements. Also consider the cost of continuing to rent or carry your current home while waiting for completion.

How Do Deposits and Financing Work?

Presale deposit requirements vary. For example, a contract requiring 15% on a $900,000 condo means $135,000 in deposits. This is an illustration, not a standard requirement.

Your deposit counts toward the purchase when it completes. You still need the remaining funds and closing costs.

A mortgage preapproval today does not necessarily guarantee financing years later. Changes in income, interest rates or the property’s appraised value can affect how much you can borrow. Discuss these possibilities with your mortgage professional before committing.

What Should You Check Before Buying a Presale?

Review the developer’s track record, disclosure statement and purchase contract carefully. Pay particular attention to completion dates, permitted extensions and changes allowed to layouts, size and finishes. Confirm whether parking and storage are included, review assignment restrictions if your plans change, and understand the estimated strata fees and warranty coverage. Construction delays and operating costs above initial estimates are possible. Make sure your finances and housing plans have some flexibility.

Can You Cancel a Presale Contract?

For purchases covered by BC’s Real Estate Development Marketing Act, buyers generally have seven days to rescind after the later of signing the agreement or providing the required written acknowledgement concerning the disclosure statement. Proper written notice is required.

Have your lawyer confirm your deadline and rights. This differs from the rescission period of three business days that applies to many resale purchases, which carries a 0.25% cancellation fee.

Which Option Is Right for You?

A presale may suit you if you want a new home, can wait and have a financial buffer.A resale may suit you if you need to move sooner, want to inspect the finished property or prefer an established building with records to review. For resale purchases, read my guide to reviewing strata documents.

Whether you are considering Lower Lonsdale, Central Lonsdale or Lynn Valley, compare usable space, storage, monthly costs and your daily commute alongside the purchase price.