The risks of presale buying
While it may be the first time in recent memory that we have heard of this happening in the lower mainland, it is definitely not the first time it has happened….and frankly it is surprising to me that, with the rising costs of construction and delays in getting trades and completing projects, it has not been happening more often. I am talking about the recent Riverbend (Coquitlam) disaster from the point of view of many home buyers (a lot of them first time home buyers) who thought they had done very well buying into a lovely neighbourhood for what now looks like a very good price. Unfortunately, while they did on paper make a great real estate investment, the reality is that they will never realize on the equity they should now have. In fact, many of them will never live in the dream homes that they even chose the finishings for. In order for them to move into their homes, these presale buyers must now come up with the difference between the price they contracted to buy for and the current market value. This is something that many of them cannot do.