Cell: 604-855-2521 |

Holy #$%&! I Need More Money For What?

Do Not Forget About Your Property Insurance When Buying A Home!

When you finally reached that goal of saving your 5% down payment you thought, "This is it, I can now say goodbye to my landlord." Then you started to look for a property and found one you fell in love with. Once your offer was accepted, you were scheduled for an exciting day at your lawyers office to transfer the title to your name.

After signing the documents, the lawyer asked for a bank draft that you proudly showed to him. The draft included your 5% down payment, your Property tax, and lawyer’s fees (that you did not know about before but your mom and dad generously covered that bill.) The smile on your face started to disappear when watching  your lawyer’s head shake from side to side and his puzzled look over his glasses said, "This is not enough.”
Then you said, “What? Why not?”
Then your lawyer informs you that your mortgage company is lending you the money with a few conditions and one of the conditions says that you have to have fire property insurance ($500 to $800 bill).  Now you only have 2 hours to find an insurance agency-- and do not forget to call mom and dad to ask for more $$$.

This is not a story that I’ve just made up. This happens more often than it should. Why? --Because of the lack of preparation and information. The lesson here is BE PREPARED.
Remember there are differences between the fire insurance on a house and the insurance on a strata property. Often the strata properties fire insurance in covered in your monthly strata fees.

Do you have a question in this regards? Write me a comment and if I can’t answer your question I will pass it on to my wife Blazena, who has been practicing insurance for the past 12 years.



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What is a pre-sale?

Example scenario: When the developer intends to build an apartment building and applies for financing, the bank will grant financing under certain conditions. One of them will likely be a certain percentage of pre-sales the developer will need to secure before receiving the funds.
It is common practice for a developer to approach several real estate investors and offer them an opportunity to purchase units of the non-existent building at a discounted price, and on good terms.

Once the number of pre-sales is accomplished, the developer goes ahead with the construction, which will likely take two years or longer to complete. During construction, their marketing team offers the remainder of the units for sale at market value to the public.

If you are a RE investor, you know that it is preferable to be buying at the pre-sale prices, not market value prices.

The question is, how do you get the invitation to buy a pre-sale?
In the past many years, investors have made substantial income by buying at wholesale prices and selling at retail prices even before they needed to complete their purchase. I saw many of them lining up and sometimes even camping overnight in front of the sales center to get a chance to buy at lower prices, but not everyone was lucky enough. You needed to be well-connected to get an opportunity, and you had to act fast.

Today is a bit of a different story. Several projects in the Lower Mainland and Fraser Valley offer really good prices and incentives to secure a unit now and complete the purchase two or three years later. The list of incentives varies from one project to the next. Besides attractive prices, you can get low deposit amounts (5-15%), low or no assignment fees, free updates, a mortgage rate buy-down program, extra parking and more.

A month ago, I helped a few of my clients purchase a presale in Surrey that sold out in 2 days, and I know of another good developer that will be offering a few units for sale as well.

If you would like to know more about these opportunities, I would encourage you to call or email me, and I’ll be happy to send you details on those projects.
Kind regards,
Tibor Bogdan
Century 21 Creekside Realty Ltd.
45428 Luckakuck Way #190, Chilliwack, BC V2R 3S9
cell: 604-855-2521
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