Quote:
Originally Posted by Winsor_Pilates
Maybe do a pre-sale instead.
That way you only need 10-20% down now and by the time it's ready (a couple of years), you are also ready for a place to stay and the value will likely have already increased a fair bit.
Plus you'll be the first person to live in a brand new place and don't have to worry about bad renters/finding renters or any other issues involving renters.
Also, chances are you can't rent enough now to cover your monthly payments anyway, so a pre-sale won't be taking money out of your pocket every month where as renting to someone likely still will.
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What you said was great advice...with a "Best Before 2005" sticker on it.
Builders have all smartened up and have priced the new constructions on a scale according to the
projected market value at completion. Some will make you sign a declaration that you will not be buying for rentals. Buying new right now is akin to writing the builder a cheque for equity that you do not yet have but they think you will have.
At this time, buying a newish resale with a motivated seller because (s)he's upgraded and moved already is the way to go. In a normal residential real estate market, the money is almost always made when you buy the place, not when you sell it.