What is a presale?
A presale property is when a buyer purchases a property before it is built. If you buy presale, you are basically purchasing the right to a property that will be built in the future. Generally speaking, Pre-sales will go on sale 2-3 years before they are built.
When you purchase a Presale, you'll typically only have to pay 10-20% up front. Each developer has different terms but generally, you won't have to pay the full value of the home until it is built. The advantage here is that it gives you time to keep building your savings. In many cases, by the time your home is built, the value of it has already increased.
Government law requires that all brand new Real Estate comes with 2-5-10 warranty. This warranty covers 2 years of electrical, mechanical, and plumbing work, 5 years of building envelope warranty, and 10 years of structural warranty.
In terms of cost, the largest difference between Resale and Presale is that Presale units come with a 5% GST tax, whereas Resale typically does not. Some cases of Resale will require the GST tax but it is situational and not very common.
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