Over the last couple years I have heard a few presale condo horror stories. People completing on their condos which they purchased pre 'financial crisis' then forced to complete at unadjusted prices. A couple buildings downtown including Atelier, Dolche, and Vita have a very high inventory of re-sale condos where the owners are having to take big losses to get any interest in their vacant newly completed units (great opportunity for the right Buyer). Other owners have opted to rent at rental rates that do not come close to covering their mortgage payments.
Post 'financial crisis' I believe we are seeing some sound investments in pre-construction once again. The first project to really adjust was The Beasley by Amacon. I sold a unit in there at an amazing deal thanks to Amacon renegotiating all of their construction contracts before they broke ground. Amacon was able to get some deep concessions from their contractors due to the collapsing economic climate and quickly passed it on to the end Buyer.
I also just acted for a Buyer at a unit in V6A by Onni. The original Buyer of this unit was able to sell the unit before it hit the public market and make a profit as soon as he completed on the unit.... and my Buyer still got a fantastic deal. I don't think we are going to see people assigning (short-selling) their units for $100,000 profit anytime soon like we did about 5 years ago... but I do think that there is money to be made in presales once again.
A couple good projects that are still selling include The Wall Centre False Creek, and Pinnacle Living False Creek... these projects are going up right next door to the struggling Milliennium Water development at a fraction of the price.
One project that just hit my desk is Uptown by Concord. Located in the trendy up and coming neighbourhood of SOMA(South Main), and priced aggressively, Uptown is sure to get a lot of interest. Slotted for completion in Fall of 2012, with Public sales starting this Saturday (October 30th).
1 bedrooms (500 sq ft - 630 sq ft) many priced at under $300K
2 bedrooms (700 sq ft - 975 sq ft) many priced at $350K - $500K
If you have any questions about pre-sales, re-sales, new-sales, or any kind of sales please do not hesitate to contact me at anytime.
- Pete Shpak
- Phone: 604.220.7490
- Office Phone: 604.925.4117
- Fax: 604.922.9273
- Email: pete@mysspp.com
