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Ian Watt Personal Real Estate Corporation - Sotheby's International Realty Canada

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More Than Enough Reasons NOT To Buy A Vancouver Condo Presale

Vancouver Condo Real Estate Video Blog #544 - May 6, 2010

More Than Enough Reasons NOT To Buy A Vancouver Condo Presale

Ian Watt video blogs about 5 or 6 reasons which is More Than Enough Reasons NOT To Buy A Vancouver Condo Presale and his video blog explaining this should be enough for you and your realtor to avoid hedging your investments right now. If you want to voice your opinion or if you don't care for Ian's comments please email your feedback to ianwatt@ianwatt.ca and visit http://www.ianwatt.ca/RealEstateVideos for all the Ian Watt Real Estate Video Blogs.

Ian Watt: Hi Good Afternoon, it's Ian Watt in Downtown Vancouver. I am shocked that presales are still, well selling in Downtown Vancouver. I'm when I say presale I mean properties that your putting money down on today and get delivered in due or three years from now. There's some brand new product out there that never been lived in before so by the developer, you know that's done and it's great and its there and you can see what it is and you can buy it. But the presales I have no idea what anyone will buy a presale today and the reason why I say that I gotta give you five reason actually. Well first of all price per square foot. Price per square foot why would anyone will pay more for a product and drop your money right now for your product that you gonna get three years from now. People are paying fifty or hundred dollars more than a comparable product out there. Today that is already built plus you have to pay HST on top of that one so 12% which is huge of course there are some sliding scales for rebates etc. etc. But that something that might come in July 1st with the product quality because cost of construction is up. The quality is going down a little bit were seeing a lot of the product out there that just a little cheaper than before. Now also the developer disclosure statements or something I don't like because they give so much wiggle room for developers to alter things and change things and they can change some square footage it appears in some disclosure statements as well. But the biggest thing I think is mortgage rates. If you have the money to put some down right now
to hold a property why are you taking advantage of the mortgage rates. Mortgage rates are going to go up three years from now when the product is delivered chances are you might have to pay a 5% instead of 3.79. That's huge what a difference that is. So I don't know why anyone will buy a presale in Downtown Vancouver right now. Our inventory is huge we have 60% more inventory than what we did last year. Take advantage of it don't buy a presale in Downtown Vancouver in 2010. My name is Ian Watt and if you have any questions. you can always email me at
ianwatt@ianwatt.ca. Thank you very much and have a great day!