1) Seven-Day Rescission Period. The Real Estate Marketing Act legally requires that all purchasers are entitled to a 7-days rescission period to allow for the due diligence of reading the disclosure statement and ensuring this is the best purchase based on their real estate goals before committing to the purchase. Once the 7-day rescission period is over, the contract will become firm and binding.
2) Being Able to Choose from a Variety of Available Units.
Working with a connected Realtor can provide early VIP access to new construction launches, which provide a larger selection of homes and preferred pricing.
3) Customization. With many presales, you will be able to customize your unit such as the color schemes, upgrades and potentially have the ability to customize or even combine units, based on your needs.
4) Delay of Mortgage Payments. Presales usually have a completion time farther into the future. This allows you to have more time to save up for the down payment and closing costs of your purchase. There's still the opportunity to lock in a rate from a lender partner on the development. If rates go up, the locked-in rate will hold and apply. If the rates drop, the lower rate will be used for the mortgage term.
5) Building Up Equity. As construction costs and housing prices rise over the course of the construction timeline, the contract value of the presale purchase also rises in value. There will be a potential opportunity to actually see profits before even completing on your unit. The ability to leverage your capital and increase your return on investment is why presales are so popular with many investors.
6) Protection from Warranty Coverage. All presale units will come with 2-5-10 Year Home Warranty Insurance. This will cover your new purchase for 2-years on labour and materials (with some limitations), 5-years on the building envelope (including water penetration), and also 10-years on the structure of the building.
7) Assignment of Contract. Most presale projects will allow the Buyer to assign and sell their contract to purchase before the completion date. With certain restrictions in place depending on the project, the Buyer will usually need to pay a small percentage assignment fee to facilitate the transaction, but will be able to create a profit without having to close on the property or obtain a mortgage. With only your deposit payments committed to the transaction, you could see a higher return on investment.