The Presale Buyer Guide
A presale is the only real estate purchase where people line up to buy air, wait three years, then act surprised when the air comes with GST, mortgage stress, appraisal risk, closing costs, strata fees, delays, assignment restrictions, construction changes, and a deficiency list that includes “paint chip behind fridge.”
Welcome to the glamorous world of buying a home before it exists.
In the zero-rate party years, presales looked like genius. Put down a deposit, wait for construction, watch prices rise, assign before completion, post something smug about “getting in early,” and let the next buyer deal with the actual mortgage.
That was the fantasy.
The modern Metro Vancouver presale market is less fantasy and more financial obstacle course with a display kitchen.
Condo sales in Toronto and Vancouver began falling in mid-2022, and by the end of Q1 2025 CMHC reported total condo sales were down 37% in Vancouver from that earlier period. CMHC also warned that condo investors were under pressure because carrying costs in Vancouver had grown 29% since 2022 while average rents rose only 12%. Project cancellations also climbed sharply, with Vancouver condo unit cancellations in 2024 10 times higher than in 2022.
The resale market is not giving presale buyers much comfort either. In April 2026, Greater Vancouver REALTORS reported Metro Vancouver apartment sales were down 10.7% year over year, the apartment benchmark price was $703,000, down 7.9% year over year, and total active listings were 37.9% above the 10-year seasonal average.
That does not mean every presale is bad.
It means the old lazy rule—“buy presale, wait, profit”—is dead, or at least lying very still.
This guide is written in the same plain-English, tax-stack, no-nonsense Victoria.estate style as your earlier notes.
What a presale actually is
A presale is a contract to buy a property before it is completed.
Usually, this means a condo, townhouse, rowhome, multiplex unit or new development home that is being marketed before construction is finished, and sometimes before construction has meaningfully started.
You are not walking into a finished home and saying, “Yes, I like this one.”
You are walking into a sales centre and saying:
“I agree to buy the future version of this floor plan, subject to a thick legal document, developer rights, construction realities, financing conditions that may disappear, and a completion date that may move like a raccoon in a garbage bin.”
In a normal resale purchase, you can physically inspect the property. You can see the view. You can smell the hallway. You can hear the traffic. You can test the water pressure. You can notice that the “second bedroom” is actually a windowless den with ambition.
In a presale, you are buying based on:
The disclosure statement.
The purchase contract.
The floor plan.
The developer’s reputation.
The building plans.
The display suite.
The sales team’s promises.
The market conditions you hope will exist later.
Your future ability to close.
That last one is the monster under the bed.
A presale is not finished when you sign.
A presale becomes real when the developer gives notice to complete and your lender, lawyer, insurance company, bank account and nervous system all have to perform at the same time.
Why developers sell presales
Developers do not sell presales because they enjoy giving buyers a head start.
They sell presales because presales help finance the project.
A developer needs to prove demand before lenders release serious construction money. CMHC noted that lenders typically require a presale threshold of around 70% before releasing funds on pre-construction condo projects.
That means early buyers are not just customers.
They are part of the project’s financing story.
The developer wants enough signed contracts to say to lenders:
“See? People will buy this.”
The buyer thinks:
“I am getting in early.”
The developer thinks:
“Thank you for helping unlock financing.”
Both can be true.
But the buyer needs to understand their role. You are taking construction risk, market risk, financing risk and timing risk before the home exists. In exchange, you hope to receive price advantage, selection advantage, future appreciation, a new-home warranty, and the exact unit you wanted.
Sometimes that trade works beautifully.
Sometimes the buyer realizes three years later that they signed a legally binding time capsule from a much more optimistic market.
The presale timeline in plain English
A presale usually moves through a sequence that looks simple in a brochure and more complicated in real life.
The developer launches the project.
A disclosure statement is filed.
The sales centre opens.
Buyers choose units.
The buyer signs a contract.
The buyer receives and acknowledges the disclosure statement.
The buyer has a rescission window.
Deposits are paid according to the schedule.
The developer tries to satisfy presale and financing thresholds.
Construction starts or continues.
The developer files amendments to the disclosure statement when required.
Completion dates move, sometimes more than once.
The strata plan is deposited.
The occupancy permit or required approvals arrive.
The buyer receives notice to complete.
The buyer finalizes financing.
The lawyer or notary prepares closing documents.
GST, Property Transfer Tax, legal fees, adjustments and the remaining down payment are paid.
The buyer gets title and keys. The buyer discovers the difference between “brand new” and “perfect.”
Warranty and deficiency timelines begin. That is the polite version.
The real-life version is:
Sign. Wait. Pay. Wait. Panic. Read amendment. Wait. Mortgage expires. Wait. Market changes. Wait. Developer emails. Panic again. Close.
Presales are not hard because the concept is complicated.
They are hard because time changes everything.
The disclosure statement is the boring document that actually matters
The disclosure statement is the most important document in a presale.
Not the brochure. Not the renderings. Not the marble-look countertop sample. Not the miniature model with tiny plastic trees.
The disclosure statement.
BCFSA says REDMA is consumer-protection legislation for people buying new homes from developers, and it requires developers to provide full information and deposit protection when marketing new developments. BCFSA also says disclosure statements must be provided to purchasers of development units, must be written, must disclose all material facts, must set out the purchaser’s rights of rescission, and must be signed. Developers must provide the disclosure statement before the buyer enters into the purchase agreement.
Normal-person translation:
The disclosure statement is where the real terms live.
It should be reviewed before the seven-day rescission period expires, preferably by a lawyer who does not get hypnotized by renderings.
A serious buyer should review:
Developer identity.
Land ownership or interest.
Building permits and development approvals.
Construction financing details or conditions.
Estimated completion dates.
Outside completion dates.
Deposit schedule.
Deposit release terms.
Assignment restrictions.
Developer cancellation rights.
Buyer default rights.
Strata budget.
Estimated strata fees.
Proposed bylaws.
Parking and storage allocation.
Amenities.
Common property.
Exclusive-use areas.
Unit size and measurement method.
Floor plan disclaimers.
Material substitution rights.
Appliance specifications.
Finishing schedule.
Phasing.
Construction risks.
Financing arrangements.
Title matters.
Easements, covenants and rights-of-way.
Rental or occupancy restrictions.
Short-term rental restrictions.
Disclosure amendments.
This is not fun reading.
That is why it matters.
The dangerous parts of real estate contracts are rarely in the big font.
They are in the paragraph your eyes skipped because the sales centre had free espresso.
The seven-day presale rescission period is not a vacation
Under REDMA, a buyer who is entitled to a disclosure statement can exercise a rescission right by giving written notice within seven days after the later of the date the purchase agreement was entered into or the date the developer obtained the buyer’s written acknowledgement that they read the disclosure statement or new disclosure statement. BCFSA also notes that if a valid rescission notice is served, the developer must immediately inform the party holding the deposit, and the deposit must be promptly returned to the buyer.
This is the cooling-off period.
But “cooling off” does not mean “do nothing for six days and panic on the seventh.”
Those seven days are for work.
During the rescission period, the buyer should:
Send the contract and disclosure statement to a real estate lawyer.
Confirm financing assumptions with a mortgage broker or lender.
Calculate GST.
Calculate Property Transfer Tax.
Check whether the newly built home PTT exemption may apply.
Check whether the first-time buyer GST rebate may apply.
Review assignment restrictions.
Review deposit release provisions.
Review cancellation clauses.
Review completion date flexibility.
Compare the presale price against current resale.
Compare the floor plan against real livability.
Estimate future strata fees realistically.
Ask whether the unit works if prices do not rise.
Ask whether the unit works if rates rise.
Ask whether the unit works if rent is lower than hoped.
Ask whether you can close if the appraisal comes in low.
The seven-day period is not there so buyers can admire the brochure.
It is there so buyers can escape before the contract becomes a very expensive tattoo.
Do not confuse presale rescission with the normal home buyer rescission period
B.C. also has the Home Buyer Rescission Period, or HBRP, which gives buyers up to three business days to rescind an accepted offer on many residential resale properties. BCFSA says the fee for using the HBRP is 0.25% of the offer price, and the right cannot be waived by buyer or seller.
That is a different regime from the REDMA presale rescission right.
For presale buyers, the key protection is usually the REDMA seven-day rescission right tied to the disclosure statement and purchase agreement.
In plain English:
Resale cooling-off and presale cooling-off are not the same animal.
One is a three-business-day resale right with a fee.
The other is the REDMA presale rescission right connected to development disclosure.
Do not casually rely on the wrong one.
That is how people turn “I thought I could cancel” into “my lawyer has bad news.”
The deposit is not just a deposit
In a resale deal, the deposit is usually held by a brokerage as stakeholder.
In a presale, deposits are governed differently.
BCFSA says that under REDMA, deposits for new development units must be held in trust by a notary, lawyer or real estate brokerage. It also explains that trust funds can be released under certain circumstances, including in accordance with REDMA’s allowance for developer use, rescission rights, court order, or where the developer certifies certain completion or buyer-default conditions.
Translation:
Do not assume the deposit simply sits untouched in a friendly little account until closing.
The contract and disclosure statement matter.
A buyer should ask:
Who holds the deposit?
Is it held by a lawyer, notary or brokerage?
Can the developer access the deposit before completion?
If yes, under what conditions?
Is there deposit insurance or other security?
What happens if the project is cancelled?
What happens if the developer defaults?
What happens if the buyer cannot close?
What happens if the buyer misses a later deposit payment?
Are deposits refundable only during the rescission period?
Can the developer keep the deposit if the buyer defaults?
Can the developer sue for more than the deposit?
What are the exact dates for each deposit installment?
Presale deposits can be large. Ten percent, fifteen percent or twenty percent of the purchase price is common enough in the market, but schedules vary by project.
A buyer signing an $850,000 presale with a 15% total deposit is committing $127,500 before they own anything.
That is not a casual hold.
That is a serious financial relationship with a hole in the ground.
The contract is written for the developer because the developer wrote it
This should not be controversial.
The developer’s contract is designed to protect the developer.
That does not mean the developer is evil. It means the developer is not your parent, therapist or financial planner. The developer is trying to build and sell a project while managing construction risk, financing risk, labour risk, material risk, permit risk, delay risk and market risk.
So the contract usually gives the developer flexibility.
A presale contract may allow changes to:
Completion dates.
Unit dimensions.
Layout details.
Finishes.
Appliance models.
Common areas.
Amenities.
Parking allocation.
Storage allocation.
Strata budget.
Bylaws.
Project phasing.
Construction schedule.
Materials.
Design details.
A buyer may think they are buying the exact display suite experience.
The contract may say they are buying something “substantially similar,” with substitution rights.
That difference matters.
A rendering is a promise only if the contract makes it a promise.
Otherwise, it is marketing art.
Marketing art is not legal advice.
Marketing art is not a kitchen.
Disclosure amendments are where the story changes
Presale projects can change.
When material facts change, developers may need to amend disclosure. BCFSA says buyers may have rescission rights in some circumstances if they do not receive an amendment to a disclosure statement they were entitled to receive, where the amendment relates to something material and reasonably relevant to the buyer’s decision to enter the agreement, subject to timing requirements.
That sentence is legalistic because the right is legalistic.
Normal-person version:
If the developer changes something important and does not properly disclose it, the buyer may have rights. But do not freestyle this. Get legal advice immediately.
Important amendments can involve:
Completion date changes.
Financing changes.
Building permit issues.
Phasing changes.
Strata budget changes.
Unit mix changes.
Parking or storage changes.
Amenity changes.
Construction changes.
Developer cancellation rights.
Material cost or financing issues.
A buyer should not ignore disclosure amendments.
Do not treat them like spam.
Read them.
Save them.
Send them to your lawyer if they look important.
A presale can change one amendment at a time until the thing you bought is not exactly the thing you thought you bought.
Financing is the biggest presale trap
A presale buyer is approved twice. Emotionally approved at the sales centre. Actually approved at completion. Only one matters.
A mortgage pre-approval at purchase is not a guarantee that you will qualify two or three years later. Your income can change. Your debts can change. Your credit can change. Mortgage rates can change. Lending rules can change. The property value can change. The appraisal can come in low. The lender can dislike the building. The project can complete when your financial life is less photogenic than it was at launch.
This is the classic presale trap:
You buy based on today’s confidence.
You close based on future facts.
And future facts do not care about your deposit.
CMHC says homeowner mortgage insurance generally requires the home to be in Canada, the purchase not to be prohibited under the federal non-Canadian buyer law, a maximum purchase price or lending value below $1.5 million for homeowner loans, and a minimum down payment starting at 5%. It also says closing costs should be considered, with a general estimate of 1.5% to 4% of the purchase price.
The basic minimum down payment framework is:
Purchase price | Minimum down payment |
|---|---|
$500,000 or less | 5% |
$500,000 to $1.5 million | 5% on first $500,000, plus 10% on the amount above $500,000 |
$1.5 million or more | 20% |
CMHC’s own current requirements page says for homeowner insured mortgage loans the maximum purchase price/lending value must be below $1.5 million, and the minimum down payment is 5% for the first $500,000 plus 10% for the remaining portion above $500,000.
Example: $900,000 presale
Minimum down payment under the basic insured framework:
5% of first $500,000 = $25,000
10% of remaining $400,000 = $40,000
Minimum down payment = $65,000
But many presale deposit schedules are higher than the minimum mortgage down payment.
A developer may ask for 10%, 15% or 20% over time. That means a buyer can have far more cash tied up than the future lender technically requires.
This is why presale deposits hurt. They are not just a mortgage down payment. They are a multi-year cash lock.
The appraisal shortfall: the nightmare hiding at completion
This is the presale horror story that never fits in the brochure.
You sign a contract for $900,000.
You pay a 20% deposit over time: $180,000.
Three years later, the market is weaker.
The lender appraises the completed unit at $820,000.
The lender lends based on the lower of purchase price or appraised value.
Suppose the lender is willing to lend 80% of the appraised value.
80% of $820,000 = $656,000
But the purchase price is still $900,000.
Cash needed to close:
$900,000 − $656,000 = $244,000
Deposit already paid:
$180,000
Extra cash needed before closing costs:
$244,000 − $180,000 = $64,000
Now add GST, PTT, legal fees, adjustments, insurance, moving costs and possibly blinds because apparently windows are not privacy.
That is how a buyer who thought they were “fully funded” suddenly needs another $64,000 plus closing costs.
This is not rare magic.
This is what happens when the contract price was set in one market and completion happens in another.
The developer does not usually reduce your contract price because your appraisal came in low.
The contract says you still owe the purchase price.
Your lender says it will lend less.
The gap is yours.
Presale buyers should ask before signing:
Could I still close if the appraisal comes in 5% low?
Could I still close if it comes in 10% low?
Could I still close if mortgage rates are 1% higher?
Could I still close if my income drops?
Could I still close if the bank counts only 50% of expected rental income?
Could I still close if I cannot assign?
Could I still close if I lose a co-signer?
If the answer is no, the presale is not an investment.
It is a future panic appointment.
GST: the bill buyers forget until it ruins the vibe
New homes are generally subject to GST.
In B.C., GST is 5%.
On an $850,000 presale, GST is:
$850,000 × 5% = $42,500
On a $1,100,000 presale:
$1,100,000 × 5% = $55,000
On a $1,250,000 presale:
$1,250,000 × 5% = $62,500
This is why presales need a different closing-cost calculation than ordinary resale homes.
A resale condo usually does not have GST.
A new presale often does.
That $42,500 or $62,500 is not a rounding error. It is a car, a wedding, several years of daycare, or enough money to make your mortgage broker start speaking gently.
Some developers advertise prices “including GST.” Some do not. Some contracts assign rebates to the builder. Some show GST separately. Read the contract.
The question is not:
“Is GST included in the marketing price?”
The question is:
“Exactly how is GST treated in the contract, who gets any rebate, and how much cash do I need on completion?”
The first-time buyer GST rebate changed the presale math
This is one of the biggest current changes for new-home buyers.
CRA says it is now accepting applications for the new First-Time Home Buyers’ GST/HST rebate, which provides eligible first-time buyers with a full or partial rebate of GST, or the federal part of HST, on newly constructed or substantially renovated homes, up to $50,000. CRA says builders can credit the rebate at closing for eligible buyers, or buyers can apply directly if the builder does not credit it.
CRA explains that for eligible first-time buyers, the rebate can recover up to 100% of GST paid, up to $50,000, on new homes valued at or below $1 million. For homes valued between $1 million and $1.5 million, the maximum rebate is gradually reduced. At or above $1.5 million, there is no rebate. CRA’s example says a $1.25 million new home is eligible for 50% of the maximum $50,000 rebate, or $25,000, if all conditions are met.
Example: eligible first-time buyer, $850,000 presale
GST:
$850,000 × 5% = $42,500
Because the home is under $1 million, an eligible first-time buyer may recover up to 100% of the GST, subject to the rules.
Potential GST rebate:
$42,500
Net GST cost:
$0, if fully eligible and properly credited or claimed.
That is a huge difference.
Example: eligible first-time buyer, $1,250,000 presale
GST:
$1,250,000 × 5% = $62,500
Maximum first-time buyer rebate at $1.25 million:
$25,000, based on CRA’s midpoint example.
Net GST cost:
$62,500 − $25,000 = $37,500
Still a large bill, but much better than $62,500.
Example: $1,500,000 presale
GST:
$1,500,000 × 5% = $75,000
First-time buyer GST rebate:
$0, because CRA says no rebate is available at or above $1.5 million.
That is why price thresholds matter.
A buyer does not just compare $999,000 and $1,050,000 emotionally. They compare them after tax.
The tax system loves thresholds.
Thresholds love ruining clean math.
Property Transfer Tax on presales
Property Transfer Tax, or PTT, is generally paid when title is registered at the Land Title Office.
B.C. says property transfer tax is based on fair market value on the registration date, unless an exemption applies or the buyer purchases a pre-sold strata unit. The general PTT rates are 1% on the first $200,000, 2% on the portion between $200,000 and $2 million, 3% on the portion over $2 million, plus a further 2% on residential value over $3 million.
For most presale buyers, the main PTT calculation is:
First $200,000 × 1%
$200,000 to $2,000,000 × 2%
Above $2,000,000 × 3%
Residential value above $3,000,000 × extra 2%
Example: $850,000 presale
First $200,000 × 1% = $2,000
Remaining $650,000 × 2% = $13,000
PTT = $15,000
Example: $1,250,000 presale
First $200,000 × 1% = $2,000
Remaining $1,050,000 × 2% = $21,000
PTT = $23,000
Example: $2,500,000 presale townhouse
First $200,000 × 1% = $2,000
Next $1,800,000 × 2% = $36,000
Remaining $500,000 × 3% = $15,000
PTT = $53,000
The buyer pays this at closing, usually through the lawyer or notary.
A presale buyer who saved only the deposit may still be short at completion because PTT arrives later, not at launch.
The government does not care that your deposit was emotionally exhausting.
It wants its closing money.
The newly built home PTT exemption
B.C.’s newly built home exemption can reduce or eliminate PTT on qualifying purchases of a principal residence.
B.C. says the full exemption threshold for newly built homes is $1,100,000, with a partial exemption for homes just above that threshold and complete elimination of the exemption at $1,150,000. To qualify, the buyer must be a Canadian citizen or permanent resident, the property must be in B.C., used only as a principal residence, have a fair market value of $1.1 million or less for the full exemption, and be 0.5 hectares or smaller, subject to the detailed rules. B.C. also requires the buyer to move in within 92 days of registration and continue occupying the property as their principal residence for the remainder of the first year.
Example: eligible buyer, $850,000 newly built presale
Normal PTT:
$15,000
If the buyer qualifies for the full newly built home exemption:
Potential PTT:
$0
Potential saving:
$15,000
Example: eligible buyer, $1,100,000 newly built presale
Normal PTT:
First $200,000 × 1% = $2,000
Remaining $900,000 × 2% = $18,000
Normal PTT = $20,000
If the buyer qualifies for the full newly built home exemption:
Potential PTT:
$0
Potential saving:
$20,000
Example: $1,200,000 newly built presale
The property is above the $1.15 million phase-out ceiling, so the newly built home exemption generally does not apply.
Normal PTT:
First $200,000 × 1% = $2,000
Remaining $1,000,000 × 2% = $20,000
PTT = $22,000
This is why buyers need to calculate both GST and PTT before signing.
A presale at $1,100,000 and a presale at $1,200,000 are not just $100,000 apart.
They may be $100,000 plus a lost PTT exemption plus more GST.
Thresholds do not negotiate.
Foreign buyers have a different problem: can they even buy?
Foreign buyers need a separate analysis before signing a presale contract.
B.C.’s additional property transfer tax applies to foreign nationals, foreign corporations and taxable trustees buying residential property in specified areas, including the Metro Vancouver Regional District. The rate is 20% of the foreign buyer’s proportionate share of the fair market value.
That is on top of regular PTT.
Example: foreign buyer, $1,200,000 Metro Vancouver presale
Regular PTT:
First $200,000 × 1% = $2,000
Remaining $1,000,000 × 2% = $20,000
Regular PTT = $22,000
Additional foreign-buyer PTT:
$1,200,000 × 20% = $240,000
Total transfer taxes:
$262,000
Before GST.
Before legal fees.
Before mortgage rules.
Before vacancy taxes.
Before the federal foreign-buyer prohibition analysis.
This is why foreign buyers should not sign first and ask later.
The list price is not the price.
The tax system is also at the table, eating appetizers.
Assignments: the exit door that may be locked, taxed, monitored, and smaller than advertised
A lot of buyers sign presales with this fantasy:
“If I do not want it later, I’ll just assign it.”
This sentence has destroyed many spreadsheets.
An assignment is when the original buyer sells their rights under the presale contract to another buyer before completion. The assignee steps into the contract and completes with the developer.
In theory, it is simple.
In practice, it is full of traps.
BCFSA says all assignments of development-property purchase contracts are governed by REDMA, and unless expressly prohibited by the developer, contracts must contain default language prohibiting assignment without developer consent. If an assignment is permitted, the developer must collect information about the parties and assignment terms. BCFSA also says the Condo and Strata Assignment Integrity Register, or CSAIR, is a database of assignments of purchase agreements for residential condo and strata lots in B.C. governed by REDMA, and the information is shared with CRA to ensure appropriate taxes are assessed.
Normal-person translation:
An assignment is not a secret flip.
The developer may need to consent.
The developer may charge a fee.
The contract may restrict marketing.
The developer may control how and when assignments happen.
The assignee may be hard to find.
The assignment may trigger GST.
The assignment may trigger B.C. home flipping tax.
The assignment may be reported.
CRA may see it.
Your accountant may start drinking coffee aggressively.
GST on assignments
CRA says that effective May 7, 2022, all assignment sales in respect of newly constructed or substantially renovated residential housing are taxable for GST/HST purposes.
This matters because older assignment folklore is dangerous.
People still say things like:
“Assignments only get taxed on the profit.”
“GST depends on intention.”
“Just call it deposit reimbursement.”
Stop.
The modern GST assignment rules are stricter. Before assigning a presale, get tax advice on GST/HST treatment, who collects, who remits, what the assignment price includes, and how the original deposit is handled.
A badly structured assignment can turn a small paper profit into a tax mess.
Assignments are not free money.
They are paperwork with teeth.
B.C. home flipping tax and presale contracts
B.C.’s home flipping tax applies to presale contracts too.
The province says the B.C. home flipping tax applies to net taxable income from disposing of a presale contract owned for less than 730 days. The rate is 20% if the presale contract is disposed of within 365 days, then declines over the next 365 days until it disappears at 730 days. B.C. also says a person is not eligible for the primary residence deduction when calculating net taxable income from a presale contract.
B.C.’s own example is simple: a buyer pays $750,000 to enter a presale contract, assigns it for $800,000 less than 365 days later, has $50,000 of net taxable income, and owes $10,000 at the 20% rate.
Example: assignment profit within 365 days
Original presale contract price: $900,000
Assignment proceeds: $960,000
Simplified profit: $60,000
B.C. flipping tax at 20%:
$60,000 × 20% = $12,000
Now add possible GST/HST obligations, federal income tax treatment, developer assignment fees, legal fees and realtor fees.
The “easy” $60,000 assignment profit may start looking like a raccoon after tax season.
Federal flipping rules can also catch presale rights
The federal Income Tax Act flipped-property rule also includes a right to acquire a housing unit.
The Act defines flipped property to include a housing unit in Canada or a right to acquire a housing unit in Canada that is owned or held for less than 365 consecutive days before disposition, unless an exception applies. Where the rule applies, the property is deemed inventory of a business and not capital property.
Normal-person translation:
Selling a presale contract quickly can be treated like business income, not a nice little capital gain.
That means a presale assignment can potentially face:
Federal income tax as business income.
GST/HST on the assignment.
B.C. home flipping tax.
Developer assignment fees.
Legal fees.
Realtor fees.
CRA reporting visibility through assignment data.
So when someone says, “I’ll just assign if I don’t like the market,” the correct response is:
“Assign to whom, at what price, with whose consent, after which taxes, and before what deadline?”
That sentence is not as fun as “easy money.”
It is more useful.
The investor presale math is no longer cute
A presale investor needs the property to work in at least one of three ways:
Appreciation.
Cash flow.
Exit through assignment or resale.
In the current market, all three need scrutiny.
CMHC says Vancouver condo investors are facing pressure because carrying costs rose much faster than rents, with carrying costs up 29% and average rents up 12% since 2022. CMHC also notes that lower unit values between pre-construction purchase and closing make financing harder for investors.
That is the investor math breaking.
Example: investor buys an $850,000 presale condo
Assume:
Purchase price: $850,000
Down payment/deposit: 20% = $170,000
Mortgage: $680,000
Interest rate: 5%
Approximate monthly mortgage payment over 25 years: about $3,950
Estimated strata: $500
Property tax: $250
Insurance/repairs allowance: $150
Total monthly carrying cost before vacancy/management:
About $4,850
If market rent is $3,100 per month:
Monthly cash flow:
$3,100 − $4,850 = −$1,750
Annual cash flow:
−$21,000
That is before vacancy, repairs, special levies, property management, tax filings, and the mental cost of explaining that “negative cash flow is fine because long-term appreciation.”
Negative cash flow can work if appreciation is strong.
Negative cash flow plus flat prices is not investing.
It is a paid subscription to hope.
Owner-occupiers should think differently from investors
A presale can make more sense for an owner-occupier than an investor.
An owner-occupier gets lifestyle value.
They may qualify for the first-time buyer GST rebate.
They may qualify for the newly built home PTT exemption.
They may care about choosing the unit, floor, exposure, layout and finish package.
They may be willing to wait because they are planning a life, not a spreadsheet flip.
Investors do not get that emotional dividend.
Investors need the math to work.
The same $850,000 unit can be a decent owner-occupier purchase and a terrible rental investment.
This is why presale advice must begin with the buyer’s actual purpose.
Are you buying to live there?
Are you buying for your child?
Are you buying to rent long-term?
Are you buying to assign?
Are you buying because the sales centre had good lighting?
Only one of those is a strategy.
Vacancy taxes can matter after completion
A presale buyer may not care about vacancy taxes at signing.
They may care very much after completion.
If the buyer completes on a Metro Vancouver property and leaves it empty or under-used, B.C.’s Speculation and Vacancy Tax may matter. B.C. says the SVT rate varies by owner tax residency and whether the owner is a Canadian citizen/permanent resident or an untaxed worldwide earner. For 2026 and subsequent years, the provincial page lists a 3% rate for foreign owners and untaxed worldwide earners and 1% for Canadian citizens or permanent residents who are not untaxed worldwide earners; the tax applies based on ownership as of December 31, and tax for a calendar year is due the following July.
For City of Vancouver properties, the municipal Empty Homes Tax is separate. Vancouver says properties deemed or declared empty in the 2025 reference year are subject to a tax of 3% of the property’s 2025 assessed taxable value.
So a buyer who completes on a Vancouver presale and leaves it empty may not just be carrying mortgage, strata and tax.
They may be carrying vacancy-tax exposure.
A presale investor should ask:
Will I rent immediately?
Can I rent immediately?
Can I legally rent short-term?
Does the strata allow short-term rental?
Does the city allow short-term rental?
Will the property qualify for SVT exemption?
Will it be subject to Vancouver Empty Homes Tax?
What evidence will I keep?
Buying a presale and then “figuring out the rental later” is how people meet government websites at midnight.
Completion date risk: the project does not care about your lease
Presale completion dates are estimates, not emotional commitments.
Construction can be delayed by:
Permits.
Financing.
Weather.
Labour shortages.
Material shortages.
Inspection delays.
Utility connection delays.
Strata plan registration.
Occupancy approvals.
Deficiencies.
Market conditions.
Developer problems.
A six-month delay can be annoying.
A two-year delay can destroy plans.
A buyer may have:
A rate hold expiring.
A rental lease ending.
A baby arriving.
A job changing.
A school year starting.
A home sale timed around completion.
A locked-in mortgage plan.
A tenant lined up.
A foreign buyer status issue.
A tax rebate eligibility issue.
The contract will usually give the developer flexibility.
The buyer should know the outside completion date, extension rights, notice period and cancellation rights before signing.
Do not ask the sales representative only:
“When do you expect completion?”
Ask:
“What does the contract allow?”
Because “expected completion” is a conversation.
The contract is the trapdoor.
Project cancellation risk: sometimes the building does not happen
Presales are sold before the project is complete.
That means the project can be delayed, changed, converted, restructured or cancelled depending on the contract and circumstances.
CMHC reported that Vancouver condominium apartment unit cancellations in 2024 were 10-fold higher than in 2022, even though some projects converted to rental.
Project cancellation is not just an inconvenience.
It can mean the buyer loses years of market time.
If the market rose, the buyer may receive their deposit back but lose the chance to buy at the old price.
If the market fell, the cancellation may be a strange blessing.
Either way, the buyer’s life has been put on pause by a project they did not control.
Before signing, ask:
What are the developer’s cancellation rights?
What happens to the deposit if the project is cancelled?
Is interest paid on returned deposits?
Can the developer terminate if presale targets are not met?
Can the developer terminate if financing is not obtained?
Can the developer extend completion?
What is the outside date?
What remedies does the buyer actually have?
A presale buyer should never assume:
“They have to build it because I signed.”
Contracts often contain more flexibility than buyers expect.
The display suite is not the contract
Display suites are theatre.
Useful theatre, but theatre.
They show a version of the product under ideal lighting, curated furniture, upgraded finishes and a floor plan chosen to make humans forget they own winter coats.
A display suite does not automatically tell you:
Exact ceiling height in your unit.
Actual view.
Actual noise.
Actual light.
Actual balcony privacy.
Actual appliance model.
Actual cabinet construction.
Actual countertop grade.
Actual floor transition details.
Actual hallway width.
Actual storage.
Actual parking location.
Actual common-area finish.
Actual amenity delivery.
Actual strata fees.
Actual move-in date.
Actual neighbour.
Buyers should ask whether the display suite includes upgrades not included in the base price.
The sentence “as per developer’s standard finishing package” should not satisfy anyone.
Ask for specifications.
Cabinet brand and construction.
Countertop material.
Appliance model numbers.
Flooring type and thickness.
Bathroom tile specs.
Fixture brand.
Washer/dryer model.
Heating/cooling system.
EV charging capability.
Window coverings included or not.
Storage included or extra.
Parking included or extra.
Air conditioning included or not.
Heat pump included or not.
The difference between “European-inspired appliance package” and actual appliance model numbers is the difference between dinner and adjectives.
Adjectives do not boil water.
The square footage trap
Presale square footage can be dangerous because buyers compare price per square foot without understanding measurement rules, wall thickness, balcony exclusions, storage, inefficient layouts or developer disclaimers.
A 720-square-foot unit can live better than an 830-square-foot unit if the layout is efficient.
A 600-square-foot one-bedroom with storage, real dining space and good bedroom proportions can beat a 680-square-foot unit with a long hallway, tiny closet and “den” that looks like a punishment room.
When reading a presale floor plan, check:
Interior square footage.
Exterior square footage.
Balcony/patio size.
Ceiling heights.
Bedroom dimensions.
Closet dimensions.
Dining space.
TV wall.
Kitchen storage.
Pantry.
Washer/dryer location.
Entry closet.
Linen closet.
Mechanical closet.
Structural columns.
Window placement.
Door swings.
Bathroom layout.
Furniture shown to scale or not.
The furniture in marketing plans is sometimes optimistic.
If the floor plan shows a queen bed, verify the actual room dimensions. A bedroom that technically fits a bed but not a human walking beside it is not a bedroom.
It is a storage unit with pillows.
Parking and storage are not afterthoughts
In Metro Vancouver presales, parking and storage can materially affect value.
Ask:
Is parking included?
Is parking optional?
How much does parking cost?
Is the stall assigned, limited common property or lease/license?
Can it be sold separately?
Is it EV-ready?
Is EV charging included or future-capable?
Is the stall full-size?
Is the stall near columns?
Is storage included?
Where is the storage locker?
Is it secure?
Is bike storage included?
Are there visitor stalls?
Are there loading areas?
Is there car-share?
A condo without parking may work in some downtown locations.
It may be a major resale penalty elsewhere.
A storage locker matters more in small units because buyers eventually discover that skis, strollers, suitcases and Costco toilet paper need somewhere to go.
Minimalism is beautiful until you have a vacuum.
Strata fees are estimates, not destiny
New developments come with projected strata budgets.
Projected is the key word.
Early strata fees are often based on estimates. After the building operates, real costs emerge: insurance, utilities, cleaning, elevators, amenities, concierge, heat, cooling, landscaping, management, repairs, waste, security, common-area maintenance and reserve planning.
A buyer should ask:
What is included in the projected strata fee?
Heat?
Cooling?
Hot water?
Gas?
Amenities?
Parking maintenance?
EV infrastructure?
Insurance?
What assumptions are used?
How much is allocated to contingency reserve?
Are amenities expensive to operate?
Is there a pool?
Concierge?
Large gym?
Multiple elevators?
Green roof?
Water features?
High insurance deductible?
Luxury amenities can be lovely.
They can also become monthly fees wearing nice shoes.
A $0.65-per-square-foot monthly strata fee on a 700-square-foot unit is $455 per month.
If that later becomes $0.85 per square foot, it becomes $595 per month.
That is an extra $140 per month, or $1,680 per year.
Not catastrophic.
But not imaginary.
Presale buyers should stop treating strata fees as small print.
They are monthly rent paid to the building you own.
New-home warranty is protection, not perfection
B.C. new homes built by licensed residential builders generally require home warranty insurance.
BC Housing says all new homes built by a Licensed Residential Builder must have home warranty insurance, protecting against certain construction defects in materials and labour, building envelope and structural components. BC Housing also warns that warranty covers construction defects, not cosmetic issues, personal preferences or contractual expectations.
The famous 2-5-10 warranty works like this:
2 years materials and labour, with limits. BC Housing describes 12 months for detached homes and non-common property in strata units, 15 months for common property in multi-unit strata buildings, and 24 months for major systems such as electrical, plumbing, heating, ventilation and air conditioning, exterior cladding, windows, doors and defects making the home unfit to live in.
5 years building envelope, including defects in the envelope and unintended water penetration that could cause damage.
10 years structural defects in load-bearing parts or the overall structure, including defects that make the home unfit to live in.
BC Housing also says coverage stays with the home, not the owner, and lists claim limits: for strata units, the lesser of the first owner’s purchase price or $100,000; for detached homes, the lesser of the first owner’s purchase price or $200,000; and for common property, the lesser of $100,000 per unit or $2.5 million per building.
This matters because buyers often think:
“It’s new, so everything is covered.”
No.
Warranty does not cover “I hate the flooring colour.”
Warranty does not cover “the room feels smaller than I imagined.”
Warranty does not cover “the view is not as romantic as the rendering.”
Warranty does not cover ordinary wear and tear.
Warranty does not replace reading the contract.
Warranty is a safety net.
It is not a magic wand.
The deficiency walkthrough is not HGTV
Before or around completion, buyers usually get a walkthrough or inspection opportunity to identify deficiencies.
This is not the time to admire your future sofa placement.
Bring a checklist.
Look for:
Damaged flooring.
Scratched cabinets.
Misaligned doors.
Cracked tiles.
Poor grout.
Countertop chips.
Paint defects.
Window scratches.
Appliance dents.
Poor caulking.
Missing hardware.
Leaking faucets.
Loose outlets.
HVAC operation.
Heating/cooling operation.
Washer/dryer hookup.
Water pressure.
Door locks.
Balcony drainage.
Closet shelving.
Light switches.
Intercom.
Parking stall number.
Storage locker number.
Common-area access.
Take photos.
Write everything down.
Confirm what is accepted as a deficiency.
Get timelines.
Do not rely on “we’ll take care of it” as a complete record.
“We’ll take care of it” is not a deficiency report.
It is a lullaby.
Completion day: where the brochure goes to die
Completion is when all the soft promises become hard money.
At completion, the buyer usually needs to deal with:
Final mortgage approval.
Appraisal.
Insurance.
Remaining down payment.
GST.
PTT.
Legal or notary fees.
Title registration.
Statement of adjustments.
Strata fees.
Property tax adjustment.
Utility adjustment.
Move-in fee.
Elevator booking.
Home warranty documents.
Occupancy documents.
Deficiency list.
Final contract documents.
Keys.
The biggest mistake presale buyers make is treating completion like a normal moving day.
It is not.
Completion is a financing event, tax event, legal event and emotional event wearing a key fob.
The buyer should have a lawyer or notary lined up well before completion notice.
The buyer should have their mortgage broker watching the file months before completion.
The buyer should have cash ready.
The buyer should have ID, insurance, bank draft/wire instructions and closing documents organized.
Do not start shopping lenders after the developer sends notice.
That is not planning.
That is financial improv.
A full closing-cost example: $850,000 owner-occupied presale
Assume:
Purchase price: $850,000
Buyer is eligible for first-time buyer GST rebate.
Buyer is Canadian citizen or permanent resident.
Buyer will use the home as principal residence.
Buyer qualifies for newly built home PTT exemption.
Deposit already paid: 15% = $127,500
GST
GST at 5%:
$850,000 × 5% = $42,500
Potential first-time buyer GST rebate:
$42,500, if fully eligible and properly credited or claimed.
Net GST:
Potentially $0
PTT
Normal PTT:
First $200,000 × 1% = $2,000
Remaining $650,000 × 2% = $13,000
Normal PTT = $15,000
Potential newly built home exemption:
$15,000
Net PTT:
Potentially $0
Mortgage and cash
If the buyer uses an insured mortgage with minimum down payment, the minimum down payment framework would require $60,000? Let’s calculate:
5% of first $500,000 = $25,000
10% of remaining $350,000 = $35,000
Minimum down payment = $60,000
But the buyer already paid a 15% developer deposit of $127,500, which is more than the minimum down payment.
At completion, the buyer still needs legal fees, adjustments, insurance, moving costs and any items not included.
This can be a strong presale setup if the buyer truly qualifies for both GST and PTT relief.
But the word “if” is carrying a fridge.
A full closing-cost example: $1,250,000 presale with partial GST rebate
Assume:
Purchase price: $1,250,000
Eligible first-time buyer.
Principal residence.
Not eligible for newly built home PTT exemption because price is above $1.15 million.
Deposit already paid: 20% = $250,000
GST
GST at 5%:
$1,250,000 × 5% = $62,500
CRA’s example says a $1.25 million home is eligible for 50% of the $50,000 maximum rebate, or $25,000, if all conditions are met.
Net GST:
$62,500 − $25,000 = $37,500
PTT
First $200,000 × 1% = $2,000
Remaining $1,050,000 × 2% = $21,000
PTT = $23,000
Tax cash needed at completion
Net GST: $37,500
PTT: $23,000
Total tax cash:
$60,500
That is before legal fees, adjustments, insurance and move-in costs.
This is why a $1.25 million presale buyer can be “ready” and still need another $60,000-plus in closing liquidity.
The closing table is where optimism gets itemized.
A full closing-cost example: $1,500,000 presale
Assume:
Purchase price: $1,500,000
Buyer is first-time but no GST rebate at or above $1.5 million.
No newly built home PTT exemption.
GST
$1,500,000 × 5% = $75,000
First-time buyer GST rebate:
$0, because CRA says no rebate is available at or above $1.5 million.
PTT
First $200,000 × 1% = $2,000
Next $1,300,000 × 2% = $26,000
PTT = $28,000
Minimum down payment
At $1.5 million or more, the general minimum down payment is 20%. CMHC’s insured homeowner loan requirements apply below $1.5 million.
20% of $1,500,000 = $300,000
Cash stack before legal and adjustments
Down payment: $300,000
GST: $75,000
PTT: $28,000
Total:
$403,000
That is why the line between $1,499,999 and $1,500,000 is not just a dollar.
It is a policy cliff wearing designer shoes.
The resale comparison buyers forget to make
Before buying a presale, compare it to resale.
Not emotionally.
Mathematically.
Take the presale price.
Add GST.
Add PTT.
Subtract any real rebates.
Add expected strata fees.
Add upgrades.
Add parking/storage costs.
Add completion risk.
Add time risk.
Add appraisal risk.
Add assignment restrictions.
Then compare to a completed resale unit in the same area.
Example:
Presale price: $900,000
GST: $45,000
PTT: $16,000
Total before rebates and other costs: $961,000
Now compare to a resale unit available today at $850,000 with no GST.
The presale may still be better if it has superior design, warranty, energy efficiency, location, completion timing, incentive package or future value.
But do not compare $900,000 to $850,000 and call the presale only $50,000 more.
After tax, the difference may be over $100,000.
The presale sales centre sells the future.
The resale market sells the current alternative.
A buyer must compare both.
Incentives are not always discounts
Developers may offer incentives:
Decorating credits.
Assignment-fee waivers.
Free parking.
Free storage.
Reduced deposit.
Rate buy-downs.
GST included.
Strata fee credits.
Appliance upgrades.
Legal fee credits.
Completion credits.
Do not reject incentives. They can be valuable.
But understand what they actually do.
A $20,000 decorating credit is not the same as a $20,000 price reduction.
A free parking stall is valuable only if parking matters and would otherwise cost extra.
“GST included” needs contract review because the price may already be inflated.
A reduced deposit helps cash flow but does not reduce the purchase price.
An assignment-fee waiver helps only if you can find an assignee and assignment is otherwise permitted.
A rate buy-down may help monthly payments temporarily but may not fix long-term affordability.
A buyer should always ask:
Is this incentive reducing my purchase price?
Is it reducing cash needed at completion?
Is it taxable?
Does it affect GST?
Does it affect PTT?
Does it affect the mortgage appraisal?
Does the lender treat it as a seller incentive?
Does it survive if I assign?
Does it need to be disclosed to the lender?
Incentives can be useful.
They can also be glitter on a problem.
The floor-plan test: would a human live here?
The presale market has produced many units designed for investors rather than humans.
A good presale buyer asks:
Can I place a real bed in the bedroom?
Is there a closet?
Is there a dining area?
Where does the TV go?
Where does the couch go?
Where does the desk go?
Is the den useful or fictional?
Is there storage?
Where do shoes go?
Where does laundry go?
Can two people cook?
Can two people work from home?
Is the balcony usable?
Is the view likely to survive?
Is the unit too dark?
Is the unit too hot?
Is the unit beside elevator, garbage, loading, parkade ramp or mechanical room?
Where is the parking stall?
Where is the storage locker?
A 520-square-foot unit with a clean layout can be good.
A 620-square-foot unit with wasted hallway and awkward corners can live badly.
Square footage is not enough.
A presale buyer is not buying a number.
They are buying a future Tuesday morning.
Will that Tuesday work?
The “future view” problem
Presale buyers love view lines.
Developers love renderings.
Reality loves future buildings.
Before paying a view premium, ask:
What is currently approved nearby?
What is likely under zoning?
What is under application?
What empty lots exist?
What older low-rise buildings nearby could redevelop?
Is the view protected?
From which rooms is the view visible?
Does the view require standing in one corner?
Is the view over a park, water, cemetery, industrial land, transit line or future tower site?
A “peekaboo view” in a presale rendering can become a full view of someone else’s balcony by completion.
View premiums are real when durable.
View premiums are risky when the buyer is paying for a future that the city has not promised.
The developer reputation test
The developer matters.
So does the builder. So does the architect. So does the warranty provider. So does the construction history.
A buyer should research:
Past projects.
Completion history.
Delay history.
Deficiency history.
Warranty claims.
Online reviews, with caution.
Litigation.
Cancelled projects.
Financing strength.
Local experience.
Construction quality.
Strata outcomes in previous buildings.
How older buildings by the same developer are aging.
Sales people sell the current project.
Past buildings reveal the pattern.
A developer with a strong track record is not risk-free.
A developer with a weak track record is not automatically doomed.
But reputation is data.
Ignoring it because the lobby rendering looks expensive is how people buy a chandelier and inherit a lawsuit.
The lawyer’s role is not optional decoration
Every presale buyer should have a real estate lawyer review the contract and disclosure statement during the rescission period.
Not after.
During.
A lawyer can help review:
Rescission rights.
Deposit terms.
Default consequences.
Assignment restrictions.
Completion dates.
Developer amendment rights.
Cancellation rights.
Disclosure statement issues.
Title matters.
Parking/storage rights.
GST treatment.
PTT treatment.
Rebate assumptions.
Risky clauses.
A $1,000 legal review can feel annoying.
A $100,000 closing problem feels more annoying.
The most expensive legal advice is the advice you get after signing away your leverage.
The mortgage broker’s role is also not optional
A presale buyer should talk to a mortgage professional before signing and keep in touch during construction.
Not one week before completion.
A proper presale mortgage conversation should cover:
Current qualification.
Future qualification risk.
Rate holds.
Income stability.
Debt plans.
Credit maintenance.
Down payment source.
Gift letter issues.
Self-employed income.
Rental-income assumptions.
Investor financing.
Appraisal shortfall risk.
Stress-test risk.
Co-signer risk.
Non-resident or temporary resident issues.
Closing-cost reserve.
What happens if completion is delayed.
What happens if completion is accelerated.
A buyer should not open new credit cards, finance a car, quit a job, change industries, co-sign someone else’s loan, or suddenly become self-employed without considering the presale completion.
The bank does not care that your new truck matches your future townhouse.
The bank sees debt.
The presale contract does not care about your life changes
Between signing and completion, life can happen.
Marriage. Divorce. Pregnancy. Job loss. Job change. Business downturn. Immigration status change. Parent stops gifting money. Co-buyer disappears. Rates rise. Credit score falls. Debt increases. Market value falls. Tenant market weakens. Assignment market disappears. The presale contract keeps waiting.
Then it asks for the purchase price.
This is why buyers should plan with a margin.
The contract is not flexible just because your life became complicated.
Some contracts allow assignment, extension or negotiated solutions.
Some do not.
The time to plan for bad scenarios is before the deposit is trapped.
What buyers should ask the sales team
Before signing, ask direct questions.
Do not ask questions that invite adjectives.
Bad question:
“Is this a good investment?”
Better question:
“What is the exact deposit schedule?”
“Who holds the deposit?”
“Can the developer use deposits before completion?”
“What is the outside completion date?”
“What are the developer’s cancellation rights?”
“What permits and approvals are still outstanding?”
“Is construction financing in place?”
“What is included in the base price?”
“Are parking and storage included?”
“Is air conditioning included?”
“What is the assignment policy?”
“What is the assignment fee?”
“Can I market an assignment publicly?”
“Does the developer share assignment profits?”
“What are the projected strata fees?”
“What amenities are included?”
“What utilities are included in strata?”
“Is EV charging included or roughed in?”
“What is the warranty provider?”
“Are any display-suite finishes upgrades?”
“What changes can the developer make?”
“What happens if square footage changes?”
“What happens if completion is delayed?”
“Can I get all of that in writing?”
That last one matters.
If it is not in writing, it may become a memory contest.
Memory contests are bad investments.
What buyers should ask their lawyer
Ask the lawyer:
“What are the worst clauses in this contract?”
“What happens if I cannot complete?”
“Can the developer keep my deposit?”
“Can the developer sue me beyond the deposit?”
“Can the developer cancel the project?”
“Can the developer delay completion?”
“What is the outside date?”
“Can the developer change my unit?”
“What are the assignment restrictions?”
“What disclosure amendments should I watch for?”
“Can deposits be released to the developer?”
“Are parking and storage properly documented?”
“What title charges matter?”
“Are there phasing risks?”
“What do I need to do to rescind properly if I decide not to proceed?”
A good lawyer is not there to make the brochure sad.
They are there to show you where the contract bites.
What buyers should ask their mortgage broker
Ask the mortgage broker:
“Can I qualify now?”
“What must stay true for me to qualify at completion?”
“What if rates are higher?”
“What if the appraisal comes in lower?”
“What if the building is worth less than my purchase price?”
“What if I change jobs?”
“What if I become self-employed?”
“What if I rent it instead of live in it?”
“What if I need a co-signer?”
“What if I buy another property before completion?”
“How much cash should I reserve for closing costs?”
“Will the lender count incentives differently?”
“Will the lender count rental income?”
“Do I need 20% down because I am an investor?”
“Is the price below the insured mortgage threshold?”
Presale mortgage planning is less about today’s approval and more about avoiding future humiliation.
The future lender is the real audience.
What buyers should ask themselves
This is the uncomfortable part.
Ask:
Would I still buy this if it completed tomorrow?
Would I still buy this if prices stayed flat for five years?
Would I still buy this if prices fell 10%?
Would I still buy this if I could not assign it?
Would I still buy this if rent was 15% lower than projected?
Would I still buy this if strata fees were 25% higher?
Would I still buy this if completion was delayed one year?
Would I still buy this if I needed another $50,000 cash at completion?
Would I live in this layout?
Would I rent this layout to a real person?
Would I buy this exact unit as a resale today?
Am I buying a home, or am I buying a story?
That last question is the presale market in one sentence.
A buyer-friendly presale checklist
Before signing:
Review current resale alternatives.
Calculate total price after GST.
Calculate PTT.
Check GST rebate eligibility.
Check newly built home exemption eligibility.
Confirm deposit schedule.
Confirm assignment policy.
Confirm financing assumptions.
Read the disclosure statement.
Send documents to a lawyer.
Research developer.
Check floor plan livability.
Check parking/storage.
Check completion timeline.
Check outside date.
Check strata fee assumptions.
Check warranty provider.
Check whether incentives are real discounts.
During the rescission period:
Have lawyer review.
Have mortgage broker review.
Confirm cash needed.
Confirm tax assumptions.
Compare resale comps again.
Check assignment language.
Check deposit release language.
Ask written follow-up questions.
Decide based on math, not sales-centre adrenaline.
During construction:
Save all amendments.
Track completion updates.
Maintain credit.
Avoid new debt.
Keep employment stable where possible.
Save more cash.
Revisit mortgage qualification.
Track resale values.
Track rental values if investor.
Keep all documents.
Before completion:
Get mortgage fully underway.
Order appraisal through lender.
Confirm insurance.
Book lawyer/notary.
Prepare cash to close.
Review statement of adjustments.
Confirm GST/rebate treatment.
Confirm PTT exemption if applicable.
Book move-in.
Prepare deficiency checklist.
Review warranty documents.
After completion:
File warranty claims properly.
Track deficiency repairs.
Apply for any rebates if not credited.
Keep closing statements.
Keep tax documents.
Keep strata documents.
Update insurance.
Calendar first AGM.
Read minutes. Welcome to ownership. It comes with keys and paperwork. Mostly paperwork.
The presale buyer’s red flag list
Walk away or slow down when you see:
Pressure to sign immediately.
No time to review disclosure.
Vague answers about deposits.
Unclear assignment rules.
Developer refuses written answers.
Display finishes not matching base package.
Completion dates too vague.
Outside date too far away.
No clarity on permits.
No clarity on financing.
Aggressive price premium over resale.
Weak floor plan.
No parking in a car-dependent location.
High projected strata fees with unclear inclusions.
Too many investor-sized units.
Developer with cancellation history.
Contract allows broad changes.
Deposit release terms buyer does not understand.
Buyer cannot close if appraisal comes in low. Buyer assumes assignment is guaranteed. Buyer needs appreciation to make the deal work.
The biggest red flag is not in the contract. It is in the buyer’s sentence:
“I’m sure it’ll be fine.”
That sentence has financed many bad decisions.
The best presales still have a reason to exist
After all this, it may sound like presales are terrible. They are not.
Bad presales are terrible. Overpriced presales are terrible. Investor-box presales are terrible.
Presales bought with no financing margin are terrible. Presales bought only because “it will go up” are terrible.
But a good presale can still make sense.
A good presale has:
Strong developer.
Fair price relative to resale.
Real location advantage.
Livable floor plan.
Good completion timeline.
Clear deposit protection.
Reasonable assignment rules.
Transparent disclosure.
Manageable strata fees.
Useful warranty.
Buyer qualifies for rebates.
Buyer has financing margin.
Buyer can close without needing appreciation.
Buyer wants to live there.
Buyer understands the contract.
The best presale purchase is not the one with the flashiest sales centre.
It is the one that still makes sense after your lawyer, mortgage broker, accountant and calculator have all tried to ruin your mood.
The bottom line
A presale is not a shortcut.
It is not a guaranteed investment. It is not a coupon for future wealth. It is a binding contract to buy a future property under future market conditions with future financing.
That can work. But it must be treated like what it is: a serious financial commitment made before the asset exists. In the old market, buyers could be sloppy and still get bailed out by rising prices.
In the current market, sloppiness is expensive.
The presale buyer’s job is simple:
Read the disclosure.
Use the rescission period.
Calculate GST.
Calculate PTT.
Understand rebates.
Confirm financing.
Stress-test the appraisal.
Understand assignments.
Research the developer.
Verify deposits.
Compare resale.
Plan for completion.
Ignore sales-centre adrenaline.
Buy the unit only if it works without magic.
Because completion day does not care how beautiful the rendering was.
Completion day asks one question:
Can you close?
