In this episode, we discuss how to buy presale with zero down
Yes, you heard that right – $0 down! Let’s find out how. If you watched my recent video titled “Property value will likely double by 2030 in Greater Vancouver!”, you can find a link here.
Then you likely understand how important it is to seize the opportunity right now
Long-completion Metro Vancouver presale
I will show you how you can buy a presale that completes in 2028, 2029 or even 2030 with zero dollars down. Presale properties are like buying a promise – a promise of a brand-new home or investment property. By getting in early, you’re securing tomorrow’s property at today’s prices. And in a market like Metro Vancouver’s, where property values are expected to soar, this could mean significant investment returns
In four to six years, interest rates are predicted to be far lower than today. Rental income, if you choose to take the presale completion, will be WAY higher. And of course, the property value is estimated to be double, again, by 2030. A fantastic feature of presales is in most circumstances, you can assign the contract. So if you don’t want to complete or can’t for any reason, you have the opportunity to sell the paper to someone else for a potentially huge profit
Now, the $0 down strategy.
Here’s the deal – you can leverage the equity from your current home as a down payment for a presale property. It’s like using the money you forgot that you had! This approach can open doors to lucrative investment opportunities without dipping into your savings or investments
Why act now?
The market waits for no one. Does this $0 down option only work for homeowners? No, there are other methods to raise capital. For example, the BDC offers business owners up to 100k pretty easily. Or, you could get an unsecured line of credit from your bank, but this is limited to your reported annual income.
With predictions of property values doubling, the longer you wait, the more you could be missing out. By acting now, you’re not just buying property; you’re investing in your future at today’s prices. And if you are curious, I definitely practice what I preach. I’ve bought and sold over 20 properties in my time. A number of them have been pre-sales. I actually have one right now going and after it is completed, I plan to buy another.
Now, assuming you are buying a place for 600k, you would need 60k to 120k over the next 6 months to 2 years. This would really depend on the completion but if you recall, I highly recommend going for the longer completions that stretch out the larger deposit structure over a longer period of time
These longer complementing projects need the larger 20%+ deposits over a period of time. Here is my recommendation: I can help you place a small LOC (line of credit) on your principal residence. This will be an annual income tax deduction to help you save money on your annual taxes too. We are about to go through a huge boom in real estate, I promise you will thank me later when your net worth skyrockets. The annual interest charge is small, about $8,000 (on $120,000 at today’s rates) and again, tax-deductible. The monthly interest-only payment is about $670. Assuming this presale goes up only 10% of the original purchase price per year, you can safely assume that you will make $60,000 a year from this investment, minus the interest paid on the line of credit
If CMHC is right, your $0 down investment is now worth $1,134,000. Minus the initial purchase price, you are now up $534,000! If you didn’t make a single payment on the line or credit and taking into account that we are in a declining interest rate environment, you are still left over with about $500,000 in new net worth. Yes, I didn’t take into account every exact cost or the benefits of the tax deductions but you get the idea here. Is it important to still complete a mortgage pre-approval when buying a presale that doesn’t complete for a very long time? Definitely!
It is important to still go through the mortgage preapproval process to understand… if you can qualify to buy a presale property, even if it is six years from now. I can help with your mortgage preapproval and guide you toward which presale opportunities are best right now.
Click my calendar link below in the description to book a time to chat
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