First-time Buyers purchasing pre-construction..?

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ADAM

NewBee

First-time Buyers purchasing pre-construction..?

Curios point was hoping to find answer to..

In BC's new budget First-Time Buyers are being presented a $10,000 tax-credit for the provincial portion of the HST during the transitional phase.

Check out release here: http://www.bcbudget.gov.bc.ca/2012/homebuyers/2012_First_Time_Home_Buyers_Fact_Sheet.pdf

With prices as such in the Lower Mainland I was interested as to the % of pre-construction buyers that are in fact First-Time Buyers.

Does this this effect a large # of buyers and is it effectively bringing more buyers to pre-sales?

Canada / New Home Q&A

AMAR PAL

Buzzer

I don't think it's having much effect.
For starters it's only applicable on homes that complete before March 31, 2013. In Vancouver, we sell presales very well for the most part so anything with a completion date in that area is likely already sold out or close to.
In general though, a fair amount of my buyers for Presales are first time buyers. I've found first time buyers get really excited about having brand new, and the drawn out timeline gives them more time to prepare for being a homeowner. Things like being able to pick colour schemes, upgrades, specific suites within a building they like, seems to appeal to first time buyers.
Also they tend to be scared of condo issues and special assessments, so having a new home warranty puts them at ease a bit.

LEONARD THE BEE

Buzzer

160

Thanks to Urban Analytics for the following comment via Twitter:
"1st timers are buying pre-sale only where they perceive a great deal or there's no fin or nearly fin prod option."