So, should you buy a presale condo in Vancouver in 2023? Let’s find out together! Sometimes, buying a home before it’s built (presale) is a smart move. This means that you agree on a price with the seller but pay at a later date, usually when the home is ready. But what should you consider? Is it trying to predict the interest rates? Is trying to figure out how much you need to borrow and the potential return from rent + the appreciation of the home. Do you also need to consider what laws BC plans on implementing, such as taxes on foreign buyers, empty homes and so on.
So Why Buy A Presale Condo in Vancouver?
Interest rates are a big deal in the world of buying and selling homes. In today’s news you see it rising rapidly, and recently it seems that the rates are currently on hold. This volatility makes people wonder if it’s the right time to invest in property like condos.
Now of course we cannot make any promises. However, some industry professionals believe that interest rates will begin to go down by the second part of 2024. If you buy a presale condo in Vancouver today, you lock in the price but you also get to wait and see what happens with the interest rates. If the rates drop, you might get a chance to buy with less interest!
What Is The Magic of Lower Prices
Developers like to continually keep things moving! They want to sell their homes fast. So during this time of a slower housing market, they’re offering special deals and prices. Promotions could include cheaper homes, reducing processing fees, even not paying property taxes for a few years on some select presale homes.
Oh No, Rental Rates Going Up!
Have you noticed that renting a place is getting expensive in Vancouver? The cost to rent a one-bedroom is like a race car, zooming up nearly 20% each year! This means if you own a condo, you could earn money by renting it out. A presale condo in Vancouver could become a pot of gold because many people need places to stay. But why are rental rates so high? As much as you want to enjoy that benefit you should also be aware of the reasons.
There’s Just Not Enough Houses!
In Vancouver, there are not enough houses for everyone. We need more, and fast! To make living easier and affordable, we need about 570,000 new houses by 2030. But we are a bit behind. But, in 2021, BC only 55,000 homes were built, indicating a shortfall of about 16,000 new homes. But don’t worry, BC isn’t standing still about this.
What is BC Doing about the situation?
British Columbia is doing all it can to try and fix the housing problem. They have a plan to make more homes available. First, they want to make it easier and faster to get permission to build houses. The way to achieve this is with fewer rules and faster moves. Often projects are held in limbo trying to get approval. Next, BC wants to allow more secondary suites. These are extra living spaces in homes that owners can rent out. This helps because it creates more places for people to live.
So What Are The Key Things To Remember
- The Right Price: Buying a presale condo in Vancouver means you can agree on a price now and pay later. You could save money if interest rates go down.
- Be Smart: Look for special offers from developers. You might find a wonderful condo at a dreamy price!
- Earn Money: With rental rates going up, owning a condo could let you earn extra cash.
- Shortage of Homes: Since there are not enough homes, presale condos in Vancouver are in high demand. They’re selling like ice creams on a hot day!
- BC’s Help: BC is making moves to help solve the housing problem. More homes and rental spaces are on the way!
Conclusion
So, should you buy a presale condo in Vancouver in 2023? Buying a presale condo in Vancouver for 2023/2024 could be a bright idea. It’s like planting a seed and watching a beautiful tree grow over time, bringing you happiness and success in the world of real estate. 🏡💖
Just make sure you have gone over each key piece of information and make a wise decision. Also like in any market, there isn’t a “perfect” opportunity. Typically you never see all the stars align before you finally make your move. In a situation like that, everyone would be rushing in to buy making the market far too hot.
Last but not least, if you want specific details about some of the presales condo in Vancouver or you have a question related to this article, sign up to be a member today. You will be connected with one of our presale experts who are happy to answer your questions. You should also take a moment to figure out how presales work in B.C.
