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Old Posted Mar 23, 2017, 8:00 PM
GilmoreStation GilmoreStation is offline
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Join Date: Apr 2016
Location: Burnaby
Posts: 465
Quote:
Originally Posted by WarrenC12 View Post
I'm not sure how you "save money" over the 5 years given:

1. the developer has that money (15% of $625k = $93k), you don't have it to invest and make $3-4k/year easy on dividends.

2. if property values drop and your place is only worth $500k at completion, you're forced to complete at $625k or give away your deposit.

3. you still have to live somewhere for 5 years, ie: rent.

I'm sure you've considered these things, but by entering into a presale agreement, you're taking on risk. Just like the developer is by buying land and building expensive condos in this market.

If I would have bought 2 presales instead of 1, I would have been able to flip 1 and have live in the other mortgage free. But hindsight is 20/20, and when I was signing the pre-sale agreement, I had to be comfortable completing the sale at the agreed price and living with the expected mortgage payment forever.
There is no way you will ever see any 2-bedroom condo that is less than 5 year old near transit in the 500's ever again in Burnaby (unless if it's super close to a cemetery)

Nor will you ever see any 1-bedroom in the 300's for buildings under 5 year old near skytrain in Burnaby ever again
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