I heard the same. but I highly doubt it. maybe for units that have released.. builder always holds back units
Full-time Realtor
Aug 25th, 2020 2:35 pm
Aug 25th, 2020 2:48 pm
Aug 25th, 2020 4:07 pm
It is not what I was pointing at. You mentioned that these ridiculous prices need be stopped and I replied to you in that aspect.JayLove06 wrote: ↑ You're aware that buildings have to go through an approval process before they are built, right? Why do you think that is?
Seriously, if the bolded were true, we'd see 100 storey buildings with nothing but bachelors. But there's an approval process as the city has a bit more of a responsibility to its citizens than a 100% investor driven builder.
Aug 25th, 2020 5:07 pm
I do agree that it needs to be more regulated as many precon buyers do not realize the enormous risks they are taking.ilim wrote: ↑ It is not what I was pointing at. You mentioned that these ridiculous prices need be stopped and I replied to you in that aspect.
Also you are right there is approval percent, so city does regulate to some degree as to what percentage of what size units should it be.
But even if there was no such thing, market would still be regulated by supply demand.
Aug 25th, 2020 5:16 pm
That is why I have never overpaid for precons; I would be afraid of the asset being appraised for less than my purchase price.Newuserid wrote: ↑ I do agree that it needs to be more regulated as many precon buyers do not realize the enormous risks they are taking.
Condo resale prices will need to go to the moon in the next few years for precon prices to get in line with reality. But what happens when condo resale prices remain flat for next 5 years and all these precon buyers are about to close on their units but they can't get sufficient financing from the banks?
The mortgage industry is heavily regulated to ensure that people don't borrow more than they can afford. This isn't the case with buying precon condos. There is no certainty that a buyer will get the financing at close.
Aug 25th, 2020 5:39 pm
Most of the precons are so overpriced imo.CondoMan98 wrote: ↑ That is why I have never overpaid for precons; I would be afraid of the asset being appraised for less than my purchase price.
What happens if that happens? I guess you have to put more money down! It is an interesting idea as we haven't seen that happen yet. I can imagine condos remaining flattish unless mortgage rates stay low and detached continues to run...could push condos higher if their prices follow.
But who knows! Buy cheap...buy SMART!
Aug 25th, 2020 5:45 pm
I won't argue with that!Newuserid wrote: ↑ Most of the precons are so overpriced imo.
Take the earlier example of the 1bed for $655K. Taking into account development charges, upgrades, land transfer tax, realtor fees, legal and banking fees, you will need to sell for $750K for you to just breakeven and get your down-payment back. If you want a reasonable profit, you will need to sell for closer to at least $800K.
Its hard to believe that a small 1bed with no parking in this not so good downtown neighborhood would be worth $800K in 4 to 5 years. But who knows....maybe I'm wrong.
Aug 25th, 2020 5:57 pm
I'm going to assume its 70% of the released units until someone proves me wrong....Theres' no way theres that many people willing to pay this much for what I'd call the worst pre-con launch yet.
Aug 25th, 2020 8:01 pm
Aug 25th, 2020 8:38 pm
Aug 25th, 2020 8:56 pm
For comparisons sake, which other launches are on your 'worst' list that this beat out?deal_with_singh wrote: ↑ I'm going to assume its 70% of the released units until someone proves me wrong....Theres' no way theres that many people willing to pay this much for what I'd call the worst pre-con launch yet.
Aug 25th, 2020 11:22 pm
Ya sure! But nothing good!BearBullBear wrote: ↑Got an email saying “everyone’s talking about 199 church!” Lol
Aug 26th, 2020 9:02 am
Regulate what, you want another government body paid by taxpayers to force private business not to sell their product for as much as they think feasible?Newuserid wrote: ↑ I do agree that it needs to be more regulated as many precon buyers do not realize the enormous risks they are taking.
Condo resale prices will need to go to the moon in the next few years for precon prices to get in line with reality. But what happens when condo resale prices remain flat for next 5 years and all these precon buyers are about to close on their units but they can't get sufficient financing from the banks?
The mortgage industry is heavily regulated to ensure that people don't borrow more than they can afford. This isn't the case with buying precon condos. There is no certainty that a buyer will get the financing at close.
Aug 26th, 2020 9:15 am
People dont finance phones.
Aug 26th, 2020 9:28 am
I am completely fine with being better informed, as with all in life. It has nothing to do with stopping the vendors from selling their products for the price they want.
Aug 26th, 2020 10:06 am
Of course people finance phones. They do it through cell phone contracts and through their credit cards. Some companies like Apple and Samsung also offer financing options, although they do have 0% interest promos.
Aug 26th, 2020 10:19 am
Let's look at the big picture here. There's a difference between financing a $1,000 purchase vs. $500,000. The latter carries significant more risk that can bring financial ruin to a buyer.
Aug 26th, 2020 10:27 am
I would be very scared if I bought a 199 Church because you are vastly overpaying for a mediocre product.
Aug 26th, 2020 10:37 am
Aug 26th, 2020 11:10 am
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