presale princess (part 1 of 2)

You’ve slain dragons in designer heels and kissed frogs without losing your lustrous lip gloss. So when you invest in presale (i.e. preconstruction) property, you’re glass slipper clear and calm on the possible risks… and the potential rewards. With presale investments:

• There’s no negotiation. Developers’ purchase agreements (written by developers’ lawyers in favour of-surprise!-the developer), are a kiss-it-or-leave-it affair.
• What you see may not be what you get.   Important details, like that view from the window, the size and layout of your suite, finishes, appliances and more, are left to your imagination. And once built, those details may be different from the original plans, showroom, and brochures shown at the time of purchase.
• Timing may be everything.... If your payments are not made on time, you could lose your deposit and your contract could be cancelled.
• … Or timing may mean nothing. The contract will often allow the developer to deliver your unit at a much later date. In (thankfully) rare instances, a development may not complete. Depending on the legal and financial position of the parties involved, you may or may not get your full deposit back.

... but the returns can be oh-so-princely:  

One luckycat girl we know invested in a $285K presale condo in 2005 with a paltry 15% downpayment, and watched similar units resell for almost $100K more as soon as the project completed in 2007. Others have reaped far greater rewards.