26 February 2008

Bad Press For Pre-Sale Condos

A Vancouver developer who pulled out of two building projects worth $95 million last November has halted a third development citing financing difficulties. The project called "The Sophia" located on E11th Avenue and Sophia Street in the city's Mount Pleasant area went into receivership last Monday.

Now this is generating a lot of ugly news for the pre-sale market and people are starting to wonder if its a good idea to buy condos at pre-construction stage.

Even the politicians are talking this time.

NDP Housing critic Diane Thorne says it's time for the Campbell Government to stop talking and take action to help buyers from the Sophia condo project.

BC's Finance Minister wants to help protect pre-sale condo buyers, and she's calling on developers to help figure out how. She wants the real estate community to come forward with ideas.

So should you avoid pre-sale condos? or is it safe to invest in a condo project at pre-construction stage?

According to the TV& newspapers, Vancouver developers are saying that this is an isolated incident. It's wise to research a company before signing a pre-sale contract with them, look at their history, find any problems they may have had, and most important, see how they handled those problems.

I agree with em - 100%. You should also work with a Realtor to avoid these problems. Realtors are professionals who work in your local market and are far more likely to help you pick great projects to invest in than just doing it by yourself.

Click here to read "Prepare For Pre-Sale Purchase" that I wrote in September 2007 for more tips on how to avoid pre-sale problems.