Buying pre-construction: What if your home is worth less than you paid? + MORE Jan 26th

Kyle Prevost, creator of 4 Steps to a Worry-Free Retirement, Canada’s DIY retirement planning course, shares financial headlines and offers context for Canadian investors.

With the S&P 500 hitting new all-time highs this week and consumer sentiment finally taking a positive leap, the “vibecession” might officially be dead. (A vibecession is when negative headlines and investor chatter don’t align with economic data and statistics—it’s more of a “vibe” than a “recession.”)

Tesla tempers expectations

Tesla shares slid nearly 6% on Wednesday after a downbeat Q4 earnings call. 

Tesla earnings highlights
(All Tesla numbers below are in U.S. currency.)

• Tesla (TSLA/NASDAQ): Earnings per share came in at $0.71 (versus $0.74 predicted). Revenue of $25.17 billion (versus $25.60 billion predicted). 

Here are a few takeaways from Tesla’s earnings report:

Tesla’s revenues were only up 3% from last year, with auto-related revenues only up 1%…

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Many Canadians bought pre-construction homes and condos at the height of the real estate market, as ultra-low interest rates fuelled a steady climb in Canadian real estate prices. Now some of those buyers are walking away from their purchases, unable to close on properties worth less than they paid for them. These buyers risk losing deposits worth $100,000 or more—sometimes, much more.

What are your options if you find yourself in this situation? Let’s look at the intricacies of buying a pre-construction home in Canada, why some buyers are having difficulty closing on their purchases, and steps you can take to avoid losing a large deposit.

You’re 2 minutes away from getting the best mortgage rates in CanadaAnswer a few quick questions to get a personalized rate quote*I’m buying a homeI’m renewing/refinancingYou will be leaving MoneySense. Just close the tab to return.

How does buying a pre-construction home work in Canada? 

Generally, pre-construction homes offer several key benefits…