House flippers and undue risk in pre con
I originally posted this in the Durham region thread but as we are seeing builders putting in $50k + legal fee for assignments...you wonder if the builders are feeling undue risk and trying to get people "booking houses" that actually plan to close and move in.
I'd love to see stats but I'd hazard in the GTA the number of people who own their house + plus the number of houses owned (or booked) by people that live within that same house is absolutely off the charts vs previous years.
There's a reason builders are putting $50k assignment fees now as they are feeling the risk of signing up a bunch of buyer who neither have the means or intent to close on the house. A subdivision with too many of these types of buyers is a massive risk to the builder if the market were to cool. I feel assignment fees should be more like $100k. So unless you plan to move in you shouldn't "book a house". The govt should get in on the action requiring SIN numbers and taxing pre con flipping (any sale between booking and house completion) as income at the highest marginal tax rate. No SIN number no purchase allowed.
I've noticed the flipper community using the terms "investment property" and "book a house" really means flipper when it comes to this pre con nonsense.
As posted by Ketchanny (thanks) in the Durham thread here's the line up yesterday in Bowmanille:
I'd love to see stats but I'd hazard in the GTA the number of people who own their house + plus the number of houses owned (or booked) by people that live within that same house is absolutely off the charts vs previous years.
There's a reason builders are putting $50k assignment fees now as they are feeling the risk of signing up a bunch of buyer who neither have the means or intent to close on the house. A subdivision with too many of these types of buyers is a massive risk to the builder if the market were to cool. I feel assignment fees should be more like $100k. So unless you plan to move in you shouldn't "book a house". The govt should get in on the action requiring SIN numbers and taxing pre con flipping (any sale between booking and house completion) as income at the highest marginal tax rate. No SIN number no purchase allowed.
I've noticed the flipper community using the terms "investment property" and "book a house" really means flipper when it comes to this pre con nonsense.
As posted by Ketchanny (thanks) in the Durham thread here's the line up yesterday in Bowmanille: