This is way beyond an issue of correction. We're talking about a further increase from current historic highs.
E-Condos - Yonge and Eglinton - ADVICE PLEASE
- Thread starter angiec27@ymail.com
- Start date
20% is due on closing, but only 5% deposit is required when buying preconstruction. My scenario is to buy with 5% down, preconstruction, and sell for $600,000 when the units have been completed. The risk is less, only 5% and you could walk if the market drops, and the potential to make $125,000 is there.Actually, you have to put 20% within a 2 year period on each condo! He's angling to hold on for two years and sell though you may have a better strategy! How does your strategy work?
BTW, Toronto Life has a scary cover story this issue. Everyone should read it. Don't buy from the ocmpanies mentioned and check with Tarrian who supply warranties.
20% is due on closing, but only 5% deposit is required when buying preconstruction. My scenario is to buy with 5% down, preconstruction, and sell for $600,000 when the units have been completed. The risk is less, only 5% and you could walk if the market drops, and the potential to make $125,000 is there.
BTW, Toronto Life has a scary cover story this issue. Everyone should read it. Don't buy from the ocmpanies mentioned and check with Tarrian who supply warranties.
Builders can and do go after buyers who renege.
Condo
The market is actually doing great! And this is an outstanding area to live. However, the developer has no credibility in the industry and what you are buying is fiction and fantasy, not reality.
What you are doing is comitting yourself to an enormously expensive purchase for something that very likely will not look anything like the futuristic Jetson's (or Blade Runner?) rendering that they're showing.
Go ahead and buy something in the area, it's fantastic, but not here. You are just asking for trouble. Ask the poor suckers who got taken by Bazis at One Bloor East a few year ago.
Caveat Emptor!
The market is actually doing great! And this is an outstanding area to live. However, the developer has no credibility in the industry and what you are buying is fiction and fantasy, not reality.
What you are doing is comitting yourself to an enormously expensive purchase for something that very likely will not look anything like the futuristic Jetson's (or Blade Runner?) rendering that they're showing.
Go ahead and buy something in the area, it's fantastic, but not here. You are just asking for trouble. Ask the poor suckers who got taken by Bazis at One Bloor East a few year ago.
Caveat Emptor!
Very few pre-construction condos are allowing only 5% down payment these days. Particularly if you are buying at the beginning when people are fighting for the "good" units.20% is due on closing, but only 5% deposit is required when buying preconstruction. My scenario is to buy with 5% down, preconstruction, and sell for $600,000 when the units have been completed. The risk is less, only 5% and you could walk if the market drops, and the potential to make $125,000 is there.
BTW, Toronto Life has a scary cover story this issue. Everyone should read it. Don't buy from the ocmpanies mentioned and check with Tarrian who supply warranties.
But even if you only put down 5%, you can't just walk away. You are still on the hook!
Builders need 75% sold inorder to secure financing. They may get it if they offer 5% down but banks learned from 2008 and they need 20% down payment from buyers to secure a mortgage. So read the fine lines because there no way you're not paying 20% before the building even breaks groundVery few pre-construction condos are allowing only 5% down payment these days. Particularly if you are buying at the beginning when people are fighting for the "good" units.
But even if you only put down 5%, you can't just walk away. You are still on the hook!
If 75% presold of people who put in 20% down will get the project started or else its going to be like 1 bloor st where they couldn't get financing. Also in you profit calculation you need to deduct development costs, land transfer tax and sales commission so prob 40K of expenses.
Sorry borntosoon, you're completely wrong, those were the good ole' days, not in recent years. If you bought condos in the last few years you would know typically you pay a token amount with the purchase and sale agreement, then up to 5% more in 30 days, another 5% in 60 days, another 5 percent in 180 days and the final 5% in about a year. The time frames may vary for each project, but typically you are paying 20% way before the condominium building is registered, or as you call it on closing. I've bought numerous units and sold over the last decade but have seen dozens and dozens of projects that I walked away from because I didn't like what I read in the Declaration. Everyone is focused on costs, but more important to me is the Declaration. I walked away from many projects, recently Yorkville Plaza as the Declaration is a disaster if anyone takes the time to read that huge document within the 10 day cooling off period. I hope the OP's boyfriend did.20% is due on closing, but only 5% deposit is required when buying preconstruction. My scenario is to buy with 5% down, preconstruction, and sell for $600,000 when the units have been completed. The risk is less, only 5% and you could walk if the market drops, and the potential to make $125,000 is there.
You are so right. First thing I do is have my lawyer go over all the paperwork. I can't believe the number of people I've met that don't even have a lawyer until they are ready for occupancy. Madness!!Everyone is focused on costs, but more important to me is the Declaration.
Now that sales of pre-construction have essentially collapsed I'm curious as to what's happening with your 8 (12?) condos? Did you go through with these 4 extra condos?Pre-Vip Launch today for E-Condos at Yonge and Eglinton by Bazis International. Saw this on Kijiji. Any thoughts on this? My boyfriend wants to buy four Southwest Facing condos on the 53rd to 57th floor as his analysis of the project is that though he will be paying slightly over $500,000 for a a two bedroom plus den is that by the time the building is registered in fall 2017 these condos will be approaching $1,000,000 if not over it. I'm shit scared because we're thinking of having kids in a few years and he's already bought 8 condos in the downtown core that are in pre-construction. Do you think this is a good investment? I think the market may slow down in 2017 and the condo may actually go down in value!!!
Sorry, the Chinese real estate market is a disaster and their stockmarket is scraping at the lows. The myth of "Asian" money coming can also be reversed. When they need to bring back money they will sell their investments, especially in a market that hasn't "crashed" yet.What matters is not if in 2017 a local couple would be able to afford a 1,000,000 condo but how many Chinese 'investors' would be able to afford that. As they continue to slowly cannibalize the world, I would say there will be plenty.
As for the OP, I would be very worried, sounds like you folks have alot of leverage working for you. Calculate a 10% decline in condo prices? If you look at the US RE history, you might want to discount prices 25% down or more? How does the balance sheet look then?
Sorry to give you bad news.
Goodguy
This is a bad project, I wouldn't invest in it. They're selling a 1 bedroom that's 466 sq. ft, and a 2 bedroom that's 692 sq. ft, and I've heard the prices are north of $700/sq ft meaning you'll be paying over half a million for the 2 bedroom shoebox. On top of that a parking spot costs $58,000 and $150 a month in maintenance, on top of the 52 cents per sq. foot you'll be paying for your unit. These are Yorkville prices that you're paying in a midtown location. The developers are pretty ambitious in their pricing, any profit that will be made will be by them with nothing left for anyone investing in it.
If you invest in real estate you concern yourself first with cashflow. Will you be able to rent these units out at a rate that is cashflow positive (after all carrying and finance costs) and provides a decent rate of return against your invested capital ? Then all of the other scary questions that have been raised about the "double your money" thesis can be considered.
If there is any way to get out of this I would look to do it. It is one thing for your bf to gamble with his own money but to pressure you and your mother into an investment you don't understand and are nervous about is just plain wrong. I don't know the details of how to bow out but my first call would be to a good real estate lawyer who deals in condo transactions. Sorry - I am sure not the advice you were looking for.
If there is any way to get out of this I would look to do it. It is one thing for your bf to gamble with his own money but to pressure you and your mother into an investment you don't understand and are nervous about is just plain wrong. I don't know the details of how to bow out but my first call would be to a good real estate lawyer who deals in condo transactions. Sorry - I am sure not the advice you were looking for.
They look pretty nicePre-Vip Launch today for E-Condos at Yonge and Eglinton by Bazis International. Saw this on Kijiji. Any thoughts on this? My boyfriend wants to buy four Southwest Facing condos on the 53rd to 57th floor as his analysis of the project is that though he will be paying slightly over $500,000 for a a two bedroom plus den is that by the time the building is registered in fall 2017 these condos will be approaching $1,000,000 if not over it. I'm shit scared because we're thinking of having kids in a few years and he's already bought 8 condos in the downtown core that are in pre-construction. Do you think this is a good investment? I think the market may slow down in 2017 and the condo may actually go down in value!!!
http://toronto.kijiji.ca/c-real-esta...AdIdZ385055608
http://dl.dropbox.com/u/47345891/E%2...o_brochure.pdf
