How Much Downpayment Do You Need To Buy Presale Condo?
Downpayment for Presale Condos, is the most common asked questions about purchasing presale condos are surrounding deposits. When buying a condo presale, one of the first steps is to place a deposit down on the property.
Typically, there is a small initial deposit due at the time of writing an offer, followed by a percentage, usually 5-10% deposit of the agreed upon purchase price. This deposit amount is due after a rescission period ends.
From there, presale condo deposits are scheduled of which are to be made over a specified period of time.
Typically with more large payments being due between your first payment and the date of completion.
Here’s a look at a hypothetical deposit schedule for presale condos. Please note that every presale contract is different, so this is just an example of a deposit schedule.
Example of Deposit Schedule
Instead of paying a lump sum as a down payment, a deposit is made up of a series of comparably small payments made on an established schedule.
Let’s say on July 1st, 2022 you find the perfect presale condo and decide to put down $10,000 upon writing your offer. 7 days later – after the 7-day rescission period, the remaining 10% of the purchase price is due.
One year later, July 1st, 2023 an additional 5% of the purchase price is due. Six months after that your final 5% of the purchase price is due.
At this point, you’ll have a 20% down payment made on the purchase price of your condo, which is relatively common in today’s market.
Then all you have to do is wait…once the building is complete, you’ll be ready to secure a mortgage and move into your new home.
The deposits you made are held in a trust account. The developers won’t be allowed to gain access to the funds until the construction on your building is complete.
That means that your deposit will be returned to you if a construction problem arises or if the developer declares bankruptcy.
The developers know certain local real estate agents and recognize their efforts in assisting buyers, agents like Ravi Bhindi with iPreSales can assist you.
Enlist a Seasoned Real Estate Agent
Whether you’re looking for a condo pre-construction or resale, it’s always best to work with a real estate agent that is experienced in the Greater Vancouver Market. By working with an agent who has experience in both pre-construction and resale condos, you can rest assured that you’ll get all the information you need to make an informed decision about your next purchase.
For more information on condo developments in Surrey, contact the team at Ipresalecondos.
Ipresale Condos is not just an agency that sells real estate, but our agents believe in educating each client deal with their own professional situation. Please call or text at 604-825-8881 or email at info@ipresalecondos.com
