Presale Tips & Pitfalls

Most everyone thinks presale properties are a “deal.”  Why?  Because in recent years the market has performed extremely well.  For a relatively small down payment you can secure a piece of real estate & most likely make money!! Historically the ability to make a profit was excellent, by either “flipping” the property before completion or renting it for short / long term.  However, the market does not always go up. Remember the global economic melt down during 2008? Interest rates have jumped significantly lately + consumer & government debt is at an all time high. 

Note: there’s lots of changes to the restrictions & taxation related to flipping /rentals now.  Be aware of these pitfalls.  Get some independent professional advice before you commit.  Otherwise there might be some serious consequences.  Remember the sales reps at the presentation centre represent the developer not you!! 

Here’s a great video from Spagnuolo & Co that outlines some key points related to presales: 


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