Getting yourself familiar with the market is probably the best first course of action - like looking at job postings during a job hunt. It helps you get a lay of the land, so to speak, and provides a sense of what options are out there at different price points.

To narrow your search, you’ll probably want to align it with your lifestyle, budget, and investment goals.

1. Lifestyle: two factors really matter in examining your lifestyle and how it relates to your condo: the size of the condo and its location. Are you looking for proximity to downtown, easy access to transit, or a quieter suburban feel? These are big decisions to make when buying any home, and while being flexible is good, having a solid idea of the number of bedrooms you’re looking for and where is a smart starting point.
2. Budget: Budget is the third major factor. You can think of budget, location, and size as three points on a triangle – in real estate, it tends to be the case that if you want to stay on budget, you’ll have to compromise on one of the other two. The same goes for each of the others.
3. Investment: Finally, you’ll want to consider the resale value of the condo as well - some features and locations tend to be better for long-term investment potential, while others are less so. To some degree, this is just speculation on the market, but on another level, everyone is making a kind of investment when they buy a home. So why not consider whether it’s a good one?

Recent Trends in the Vancouver Market

Our latest data is from the November 2024 real estate market, where Metro Vancouver saw residential property sales increase by 28.1% year-over-year, signaling a massive increase in demand. The sales-to-active listings ratio of 17.1% reflects a balanced market, though continued strong demand could drive prices upward if new listings slow down. Monitoring these trends is essential to avoid overpaying or missing opportunities in such a swingy market.

Looking past the price, your investment considerations should include the amenities and infrastructure developments planned in the area around the condo. New schools, transit lines, or retail spaces can significantly impact a property’s value. This can include whether an area is ‘up-and-coming’ with trendy commercial spaces and workplaces or not.

Further Resources

• Presale Condo Listings
• City of Vancouver Development Plans

A developer’s reputation is everything. A bad reputation can mean many problems, such as compromises in the safety and internal structure of the building, fairness of their dealings, or the chances of completing the project in a timely manner.

While not mandatory (developers have to start somewhere), having an established developer with a proven track record is preferable. It’ll also give you the chance to investigate their previous projects, which can help you understand the strengths and weaknesses of a particular developer.  You can look for things such as their reliability, the quality of their finished condos, and how well they meet deadlines.

Were they delivered on time? Are the buildings well-maintained and praised by current residents? Online reviews, testimonials, and ratings from previous buyers can provide valuable insights. Be sure to look for ones off their official website, as 3rd party information is less likely to be biased. You might also want to check whether the developer has faced any legal disputes or financial troubles in the past.

If you really want to dig deep, you can also look into the partners of the developer on their previous projects and the one you’re interested in. They’ll typically have particular architects, contractors, and management companies they deal with across projects. Each of these can have reputations to examine of their own. It can be overwhelming, but if you want a full background, it can be helpful to do your own research on each of them.

Due to the unfinished nature of the construction projects in a presale, British Columbia has mandated that companies provide a detailed disclosure statement for all presale condo projects. Developers are legally obligated under the Real Estate Development Marketing Act (REDMA) to furnish this statement to prospective buyers before any purchase agreement is signed. This document provides potential buyers with the time and information to review the project's specifics for more informed decision-making.

The disclosure statement will include the following key information:

• Expected Completion Date: The timeline for the project's completion. You can cross check with previous projects by the developer to see how well they adhere to deadlines.
• Strata Bylaws: Rules and regulations governing the strata corporation, which can affect aspects like pet ownership, rentals, and noise levels. Can be important if these rules affect you.
• Parking and Storage Allocations: Details on the availability and assignment of parking spaces and storage lockers. There may also be options to purchase additional amounts of each.
• Deposit Structure: The schedule and amounts for deposit payments required throughout the purchasing process.

And other important details. Given its importance, you’ll want to review the document fully before committing to any presale. We recommend going over it with a real estate lawyer for a thorough examination of what you can expect. They will have experience with the language and loopholes developers use in the statements to make projects look more lucrative than they might actually be.

Additionally, be aware that developers can issue amendments to the disclosure statement as the project progresses. These additions can reflect changes in design, timelines, or other material changes to the construction. It’s critical to stay up-to-date on these as they come in, as they can change important aspects of the final design, which may change or even break your terms of agreement.

For more detailed information on disclosure statements and your rights as a buyer, you can consult the

You need more than a simple pre-approval to secure financing for a presale condo. Developers often demand a sizable deposit, usually between 5% and 20% of the purchase price. They split this deposit into several parts. For example, you might pay 10% when you sign the agreement, another 5% after six months, and the rest closer to completion. Make sure you understand the agreement and its deadlines in advance so that you have the necessary funds available at every stage.

Also, consider the project’s timeline. Presale condos can take one to five years, depending on the project. Confirm with your lender if your pre-approval remains valid until completion. If not, you may need to reapply if the completion date comes later. Also, ask how changing interest rates might affect your future costs - things can change a lot in a few years, so be sure to keep on top of changing rates. Even a slight increase over time can reduce what you can comfortably afford.

Seek lenders who understand presales. Some lenders, as noted on Ratehub, can lock in rates for longer periods or offer flexible terms. A skilled mortgage broker can help with this. With the right financing strategy, you’ll feel a lot more secure in your investment and be able to afford it even when things are a bit more unsteady in the market or your own finances.

Next, we’ll look at how British Columbia handles the legal and financial regulations around presale condos, as the specifics can affect your purchase. There are two key regulations we believe are important to keep in mind:

• 7-day Rescission Period: This regulation gives buyers a seven-day "cooling-off" period after signing a purchase agreement. During this time, a buyer may cancel the agreement without penalties. You can use this time productively to review the disclosure statement with a real estate lawyer to ensure everything is in order and fits your goals for the purchase.
• Assignment Sales: Some presale contracts allow buyers to sell their contract to a new purchaser before the project is completed. That is, you’d be selling your presale contract for the condo without the condo itself having been fully built. While this can be an attractive option for those who may want liquidity to their asset upfront, there are associated taxes and restrictions tied to this option. Many developers also charge assignment fees, and any profit made may be subject to capital gains tax. The combination of these factors can add up to significant costs that can be hard to fully calculate in advance.

Additionally, keep in mind the Real Estate Development Marketing Act (REDMA). This law requires developers to provide disclosure statements, which include essential project details. This can be invaluable for checking for loopholes and potential problems with the project.

As steps 1 through 5 show, there are a lot of potential pitfalls that one can fall into when purchasing a presale by oneself. That’s why we recommend buyers work with professionals when deciding on their purchases.

The most important of which is a good real estate agent specializing in presale condos. They’ll have the most explicit experience in the market, understanding its ups and downs and the reputations of most developers. A great one will also be able to negotiate on your behalf better than most, allowing you to get favourable terms on your contract.

Next, you’ll need a real estate lawyer to review the legal documents involved in the purchase and to check over the BC regulations and any legal concerns that may come up. Finally, depending on your finances, a mortgage broker might also be a good idea. Step 4 outlines the many different financing options available, but it can be overwhelming to select and find the best deal for your specific situation. Even a small difference in interest rate of 2-3% can make a world of difference in the long run.

Closing costs are varied, and while no individual one is a large sum, their combination can take people off guard. So, it’s best to get used to them now, so you can budget for them early on.

• Property Transfer Tax: First-time buyers may qualify for exemptions, but it’s still important to understand the criteria.
• GST: A 5% Goods and Services Tax applies to the purchase price of new homes.
• Strata Fees: These begin once you take possession and can vary depending on the building’s amenities and the size of your unit.
• Legal Fees: You’ll need a lawyer to finalize the paperwork and register the property in your name.
• Home Insurance: Required before you can close the deal.

Since buying your first presale condo in Vancouver can feel so overwhelming, we’ve also devised a list of tips for getting started as a first-time buyer:

• Start Small, Think Big: Entering the market with a smaller unit, like a studio or one-bedroom, is a good approach to starting out. You learn so many things just in the process of your first purchase that your next one will be that much better and more informed. This way, you get your foot in the door of the Vancouver real estate market without potentially hitting a sinkhole-sized pitfall if something goes wrong.
• Location, Location, for Future Appreciation: Location is everything when it comes to speculating on future appreciation in value. And that’s especially true with presales. What’s hard is not knowing in advance how trendy or popular the area will become - will the amenities, parks, and commercial enterprises of the spot be a hit or a dud? When you’ve got neighbourhoods transforming rapidly, it can be hard to tell, so you’ll have to do your best researching the projects and trends in the area. Look for areas with strong rental demand as well, as this provides flexibility for the condo in case your plans change.
• Maximize use of Developer Incentives: Presale projects often also come with attractive incentives for buyers. Like with credit card perks, if you can leverage these well, they can significantly increase your benefits and lower your costs. So, it’s worth getting to know what each development offers. Common incentives include
  • Reduced Deposit Structures: Instead of the standard 20%, developers might offer staggered deposit payments or lower initial deposits. For many people, this can make a big difference in affordability.
  • Free Upgrades: Developers might offer free upgrades to appliances, flooring, or other finishes, which can be huge, especially if they’re ones you plan on doing, anyway.
  • Assignment Clauses: Some contracts allow you to assign your purchase agreement to another buyer before completion. This can be beneficial if your circumstances change, giving you better flexibility. 
  • Parking or Storage Included: In a city like Vancouver, parking and storage can be valuable assets in themselves. Some developers include these in their packages.
• Leverage First-Time Buyer Programs: In addition to developer incentives, several programs run by the B.C. and federal governments are available to assist first-time homebuyers. These programs are designed to help first-time buyers in the province gain earlier and more affordable access to their first home.
  • BC First-Time Home Buyers' Program: This program can exempt qualifying first-time buyers from paying the Property Transfer Tax (PTT) on purchases of newly built homes (including presales) up to a certain value. It is always a good idea to take advantage of this program if it is available to you.
  • First-Time Home Buyer Incentive (Federal): While this program is being wound down, it's still worth checking if you qualify. It offers a shared-equity mortgage with the government, reducing your monthly mortgage payments.
• Due Diligence is Key: Finally, we have to mention that with presales, you're buying something that doesn't yet exist. There are so many things that can happen in the intervening years. That’s why due diligence is even more important than usual:
  • Research the Developer: Look into the developer's track record and past projects. We’ve provided some ideas of how to go about this in Step 2. 
  • Review the Disclosure Statement: This legal document outlines all the details of the project, as mentioned in Step 3 above.
  • Consult with a Real Estate Lawyer: Obtain a lawyer specializing in real estate to review the purchase agreement and ensure your interests are protected. More details are provided in Step 6.

Hopefully, this guide has provided you with the launch pad you need to confidently navigate the Vancouver presale market. Happy hunting!