# Costs associated with buying new development



## tavogl (Oct 1, 2014)

Hi,

So we are interested in buying a condo in Port Coquitlam, British Columbia. it's a project and should be ready in 18 months.
We are first time home buyers, developer is asking 5% when signing the documents, 5% when the project is ready (in 18 months). 

So, beside the 10% required by the developers, and obviously CMHC insurance for paying less than 20% down payment, what other fees/costs should I be considering? Property price is CAD $509,400. 

Thanks!


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## kcowan (Jul 1, 2010)

Lawyers fees, costs of temporary accommodation if the project is late, taxes.


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## Just a Guy (Mar 27, 2012)

Legal fees to the bank, land transfer tax(?), gst/hst(?), moving expenses, utility hookup fees (plus a possible deposit), condo fees going forward, insurance, possibly a parking stall if it's not included, and possibly a few other things. 

Nothing cheap about real estate.


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## mikep (Mar 13, 2017)

test


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## mikep (Mar 13, 2017)

not sure why my reply didn't post.. hopefully I didn't forget a few points. 

take your original agreement to a lawyer to cap the levies.
read this: https://www.talkcondo.com/condo-investing-guides/development-charges-development-levies/

you'll probably need
storage solutions like a cabinet in the bathroom
back splash in the kitchen
light fixtures where you thought there would be some
air fresheners to cover up the smell of garlic your neighbor is cooking
new socks and shoes because you'll be living in a construction site
window coverings
OTR microwave and a handyman to install. 
be prepared for your maintenance fee to be atleast 1.5times what they told you.
better hope they have money in the reserve fund after a few years or you'll be hit with a special assessment


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## tavogl (Oct 1, 2014)

Just a Guy said:


> Legal fees to the bank, land transfer tax(?), gst/hst(?), moving expenses, utility hookup fees (plus a possible deposit), condo fees going forward, insurance, possibly a parking stall if it's not included, and possibly a few other things.
> 
> Nothing cheap about real estate.


I thought first time home buyers had the land transfer tax waived? I didn't think you'd pay HST on a condo?


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## Just a Guy (Mar 27, 2012)

Rules are different in different provinces, thus I added the "?".


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## Eder (Feb 16, 2011)

What happens when condo prices are 10% lower in 18 months? That is the futures bet you are placing.


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## tavogl (Oct 1, 2014)

Eder said:


> What happens when condo prices are 10% lower in 18 months? That is the futures bet you are placing.


Exactly the same bet you place when buying stocks I assume? You buy expecting price will go up. The difference here is that I won't expect my property to gain value over 1 or 2 years... It would be silly to think it would, in the other hand, we plan keeping this place for 25+ years, its big enough for us and 2 kids.

The rental situation in Vancouver and it's surroundings is getting bad, most of my friends who rent are getting renovicted, or simply asked to move out because owners want to sell. I am all for rent, but it's not making much sense lately to do so, it's very inconvenient and when planning for a family, it's just out of the question for us.


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## kcowan (Jul 1, 2010)

GST is 5% with a first time buyers rebate of 36% of that amount in BC.


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## kcowan (Jul 1, 2010)

tavogl said:


> Exactly the same bet you place when buying stocks I assume? You buy expecting price will go up. The difference here is that I won't expect my property to gain value over 1 or 2 years...


we owned 4 houses and the frictional costs are very significant compared to a $9.95 commission on stock sale.


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## Abii (Jun 22, 2017)

tavogl said:


> Exactly the same bet you place when buying stocks I assume? You buy expecting price will go up. The difference here is that I won't expect my property to gain value over 1 or 2 years... It would be silly to think it would, in the other hand, we plan keeping this place for 25+ years, its big enough for us and 2 kids.
> 
> The rental situation in Vancouver and it's surroundings is getting bad, most of my friends who rent are getting renovicted, or simply asked to move out because owners want to sell. I am all for rent, but it's not making much sense lately to do so, it's very inconvenient and when planning for a family, it's just out of the question for us.


It might very well go up in 1-2 years man. I bought in downtown in Nov. of 2015 (so pretty much in 2016) and 1.5 years later I'm up 150-200!!! Of course it's all luck. I bought at the right time (before condos got hot), but you never know with this insane Vancouver market.

I'm selling next summer though (moving to Alberta).


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