Let’s say you are on the looking to buy a house in Surrey. You have built up capital all these years for a downpayment and feel confident about paying off the mortgage, even with increased interest rates. So, like most people, you start searching for “presale condos Surrey”, or something like “townhouse presale Surrey” on Google or whatever search engine you prefer. From that first step to (actually) committing to a property though is a long, anxiety filled process that is off putting for most people. Moreover, if you are thinking primarily about going for a presale to maximize the price and build advantages, then there is also the inevitable “wait time” between you putting down a downpayment, and for the project to be completed, that needs to be factored in. So, we decided to try and slightly ease the process for you by laying down a few guidelines on “how to choose” and “what to choose”.

Go with a trusted developer

Just like anything else, it is always wise to place your trust in the tried and tested. Even if the toss up is between an established developer with a less than spectacular track record and a complete newbie, you should always go with the former. Now, we are not trashing new players in town. Far from it. The more the merrier, especially in Canada, which needs a lot of houses to be built to come out of this debilitating housing crisis. However, unless the developer does not have a previous track record of developing or constructing houses or even infrastructure projects, is it really prudent to place your trust (and your hard-earned money) in such ventures?

Discounts are great, but also a red flag

Individual home buyers are not the only ones in the market. There are plenty of investors who are looking to invest in a second, or even a third home. So, while that has in effect inflated prices, it is still “real” demand. Given the way Canadian markets are structured and its regulatory authorities function, the chances of a 2008 housing crash that the US saw are next to nothing. Afterall, despite the umbilical relationship that the US and Canadian economies have, Canadian housing market and its financial institutions were barely impacted. The demand in the Canadian real estate market is not speculative, and consequently steady. If bought today, a property will appreciate in value over time, making it one of the safest investments possible. Despite the existence of such heavy demand, if a developer is asking for a price that is significantly lower than the market rate (you will almost always see them packaged as a discount), then beware. If it is too good to be true, it often isn’t.

Location matters, even if it comes at a price

When you are checking out condos for sale, or townhouse presales in Surrey, how do you select which ones to look at? I am guessing, like most people, you do so based on what you can afford, right? Afterall, when it comes to buying a house in Surrey, or anywhere in the lower mainland, most are not liberated, but rather constrained in our choices. Hence, all features remaining within the ballpark, most would settle for a cheaper alternative slightly away from the city and transit core than spend more on something that abuts a major transit corridor. However, such a choice makes your future options rather inflexible and constrained. Paying slightly more to be near transit and other public facilities ensures that you can monetize the property based on location alone from day 1. Have we not seen people prepared to event rent solariums for $900 a month if they are near transit! On the other hand, even the best properties can receive minimal interest from renters if they do not have reliable transit connectivity. Afterall, who knows what one’s circumstances are three years down the line? Your circumstances must change, and you might want to monetize your home rather than live in it, or both. Investing in a presale which is well connected to transit is the smartest way to go about it.