Investing in Presale Homes on the North Shore: What Buyers Should Know
Presale Investing in North & West Vancouver: A Realistic Guide for Buyers
Buying a presale condo or townhome in North Vancouver or West Vancouver has long been a popular strategy for investors looking to get into the market with lower upfront costs and the potential for long-term gain.
But the real estate landscape is evolving — and while presales still offer unique advantages, they’re not a guaranteed win.
In this post, we break down the real benefits, key risks, and what investors should know before putting money down on a new development.
Curious about the process, risks, and benefits of buying a presale as a future homeowner? Be sure to read our full guide to buying presales in North & West Vancouver. Is Buying a Presale Home Right for Me?
Disclaimer: The information in this article is for general informational purposes only and does not constitute legal, financial, or professional advice. Investors should consult with qualified professionals to assess whether a presale investment is appropriate for their specific financial situation and goals.
What Is a Presale?
A presale (also known as a pre-construction purchase) is when you buy a home that hasn’t been built yet — usually in a condo or townhome development.
You're purchasing based on floorplans, renderings, and developer specifications, often 2–4 years before completion. You sign a contract and pay a deposit (typically 15–20%), with the balance due when the home completes.
Why Do Investors Like Presales?
Presales have historically appealed to investors for several reasons:
- Buy at today’s prices: Lock in a purchase price now, even if values rise before completion.
- No mortgage during construction: You don’t need to secure financing or make payments until the home is complete.
- Leverage time: Ideally, you build equity as the market appreciates without having to carry the costs of ownership.
- Low maintenance: No tenant or property management concerns while the home is under construction.
- Brand-new product: On completion, the unit is modern, efficient, and covered by the 2-5-10 New Home Warranty.
What Are the Risks of Investing in a Presale?
Presales do carry real risks, and investors should be aware of potential downsides:
- Market uncertainty: If the market doesn’t rise as expected, you could be completing at the same value — or lower — than what you paid.
- Appraisal gaps: If the unit appraises below the contract price at completion, you’ll need to cover the difference in cash.
- Financing risk: You still need to qualify for a mortgage at completion, and interest rates or your financial situation may change in the meantime.
- Limited exit strategy: Most contracts don’t allow you to assign (resell) the unit without developer approval — and if they do, it’s usually with conditions and fees.
- Project delays or changes: Developers can legally delay timelines or make changes to layouts, finishes, or amenities.
Is It Better Than Buying Resale?
It depends on your financial goals, timeline, and appetite for risk.
Resale Pros:
- Immediate possession
- Transparent current market value
- Financing and costs begin right away
Presale Pros:
- Delayed mortgage and carrying costs
- Potential market appreciation before completion
- No immediate maintenance or tenant issues
In areas like Lower Lonsdale, Moodyville, and Cypress, presales can be a way to secure a future home in a desirable location without today's full outlay — but timing and market conditions matter.
What Happens If the Market Drops Before Completion?
This is one of the biggest concerns for presale investors.
If the market declines before the project completes:
- Your unit may be worth less than your contract price.
- Lenders may reduce their loan amount based on a lower appraisal.
- You could need to provide additional cash to close.
- Some buyers may struggle to close and forfeit their deposits.
Tip: Always take a conservative approach. Don’t rely solely on appreciation to justify the investment.
What Should I Look For in a Good Presale Investment?
Not all presales are created equal. When evaluating a project:
- Choose a reputable developer with a proven track record
- Focus on locations with long-term growth potential
- Compare pricing to similar resale units
- Confirm if the developer allows assignments (and at what cost)
- Make sure the completion timeline works with your financial plans
Can I Use a Realtor When Buying a Presale?
Yes — and you should.
Working with an experienced Realtor who understands presale developments in North and West Vancouver can make a major difference — especially when you're committing to a contract years before completion.
A knowledgeable agent can:
- Help you compare pricing, incentives, and long-term value across multiple projects
- Review contract terms and flag developer-friendly clauses that could impact your flexibility
- Offer insight into potential rental income or resale potential
- Represent your interests at no cost to you (developers typically pay the buyer agent’s commission)
Interested in learning more on how an agent can help with a presale?
Read our full post: Should I Use a Realtor When Buying a Presale?
Final Thoughts
Presales can still offer real long-term value, but they’re not without risk. For investors, the key is to understand the contract, assess your own financial capacity, and align the purchase with your strategy and time horizon.
If you're considering a presale on the North Shore, take the time to explore the risks, compare projects, and plan ahead.
Thinking of investing in a presale?
Let’s talk. I’ll help you compare current developments and assess whether a presale fits your goals — before you sign anything.