Conservatory Group's 0% interest mortgage for 3 years

[NEMESIS_2008]

I just read in the New Homes and Condominiums section of the Toronto Sun that they are offering a 3 year no interest mortgage to help clear out their inventory. A downpayment of only 5% is required, and all the monthly payments will go towards the principal of the mortgage.

I was amazed at this deal. I plan to make a 30K downpayment. So after 3 years, all the monthly payments including my 30K downpayment will mean that I would have roughly $70K in equity not including any house appreciation or depreciation. Anyone look into this offer? I'm going to one of their sales centres tomorrow.

[asdfvcx]

All this means is that they are having a $40k off sale. Home sellers are a lot like car dealers, as they hate to have sales. So instead, they use all kind of gimicks to reduce prices without having a "sale".

[Scooooter]

It's built into the price.

[15-20_God]

It's built into the price.

and considering that its the conservatory group, its likely poorly built at that.

[Jungle]

But the houses and condo's are still overpriced. They are the same prices eveyone paid before the bubble burst. So you buy at $300k, but market value is $240. In the end, you just bought an overpriced real estate with a three year 0% mortgage.

[NEMESIS_2008]

But the houses and condo's are still overpriced. They are the same prices eveyone paid before the bubble burst. So you buy at $300k, but market value is $240. In the end, you just bought an overpriced real estate with a three year 0% mortgage.

hmmmm, i knew it was too good to be true............
ill still check out the sales centre with this in mind and get the actual prices

[shawn99]

yeah, update us on how much is the price.

[xstatik]

From what I understand from their deal, this applies to "Inventory" homes, which means they are homes they built, but did not sell (usually done in order to complete a subdivision/street, otherwise, you would have a street half complete and the municipality doesn't want that happening). Builders are known to give good deals on inventory homes as their profits are already secured by the pre-sales of the other homes and they need to clear them out the remaining, built homes.
Probabily the biggest negative is that since they are "Inventory" homes, they are probabily not the best lots/locations/models as they would have sold out on the presale.
There are deals to be had and there have been cases where the builder will negotiate on the inventory homes.

I can almost guarantee that this deal would NOT apply on homes that have not been built (ie Pre-Sales), as most builders are just holding off on new phases instead of discounting.

[aneesh]

Please beware one of the worst builders as per JD power rating

http://corp.jdpower.com/jdpcc/global...ilders/gta.jsp

There customer service is really poor.I will advice never to buy a home from them

Please read this link specailly for first time buyers

http://www.tarion.com/HOME/New+Home+...w+Home+Buyers/

[NEMESIS_2008]

I can almost guarantee that this deal would NOT apply on homes that have not been built (ie Pre-Sales), as most builders are just holding off on new phases instead of discounting.

In the newspaper ad that I saw today in The Mississauga News, it says now under construction, but at the top of the ad it says "inventory clearance." i'm going to their sales office today to clarify some things:

1. Is the house already built or in construction?
2. The Mississauga News ad says "semis and singles from 320K." I assume that the semi is from 320K. But when I read in the New Homes magazine, it says semis from 250K in the same area (Walnut Grove in Spring Valley).

So I guess ill ask them the prices before showing them the ads that i have and compare. 320K for a semi in Brampton seems a bit high......... perhaps that is the price for the single? Anyways, I'll find out today.

Overall, I'm skeptical. Before I even make an offer, I will consult my real estate lawyer.

NEMESIS

[confused student]

Probably inflated pricing, no pre-payment privilege and a 5/7/10 year term with a high rate for the part after 3 years

[hajle]

I visited Sorento Village and Mississauga site as well.

Sorento semis are pretty standard or bellow the standard like no fireplace, extra charge for landscaping, driveway etc. Not to mention that their 2000 sq ft. is not even close to that size.

On top of it they won't talk about any upgrades until you sign the agreement and then they will send you to the decor centre where they can make lots of money as you are all in their hands. I have not seen any other place in this world where you sign the contract first and then they will tell you how much it will cost you with all the upgrades.

After years of sellers market they are so spoiled they don't even care if you buy or not. They don't want to talk to you.

In mississauga they charge you $30K if you take the 3 y. no interest plan. So it is just built in the price. with today's 2.5-3% rates on $400K you pretty much pay all the interest in the price.

Obviously some people need a good kick in their ass to wake up and understand the market changes.

[EugW]

Depending on the builder, if they're offering you that kind of deal, you may be able to negotiate.

Back when rates were much, much higher, my condo builder offered a sub-5% fixed 3-year rate. Most buyers thought it was great, but I found the contract too restrictive. I said I wasn't interested, and would much rather that they drop the price.

They waffled a bit, but then gave in to make the sale.

[iambored]

the Conservatory Group did this a few years back... it's Sorrento village as well, but an older phase. it was slightly different... it was 0% down, and pay only interest and no principle for the 1st year.

It seemed like a good deal for legitimate buyers, but what it attracted were a lot of pot growers. If you think about it... which type of buyer profile doesn't want to put any money down... but has a high monthly cash flow?

mind you, for legitimate buyers, it was an excellent financing deal.

[luxome]

I just read in the New Homes and Condominiums section of the Toronto Sun that they are offering a 3 year no interest mortgage to help clear out their inventory. A downpayment of only 5% is required, and all the monthly payments will go towards the principal of the mortgage.

I was amazed at this deal. I plan to make a 30K downpayment. So after 3 years, all the monthly payments including my 30K downpayment will mean that I would have roughly $70K in equity not including any house appreciation or depreciation. Anyone look into this offer? I'm going to one of their sales centres tomorrow.

I would be really cautious buying Conservatory Group products. The quality of their design and construction material is very cheap. I personally own one right now but will be selling it very soon. One of the worst builders on my list.