buying a pre-sale condo VS buying a ten year old condo/townhome.

[Yi Hao Liao]

I was listening to the Vancouver Real Estate Podcast episode 123 featuring Brad Lamb from Toronto, he recommends to buy pre-sale condo, and by the time you the condo is built, you will already have gained a good capital, then you can rent it out and refinance due to the value of the condo increases. 

anyone have any tips?

[Jonathan Taylor Smith]

@Yi Hao Liao - Is this strategy specific to Vancouver? Wouldn't it require that the market values continue to increase rather rapidly during the construction period to create equity? And wouldn't it also require that rents increase at a proportional pace to then be able to service the post-refi debt with a sufficient DCR? What happens if either should fail to be true?