Real Estate

Is buying an assignment condo a bad idea?

  • Last Updated:
  • Oct 8th, 2019 11:26 pm
[OP]
Member
Aug 24, 2014
259 posts
31 upvotes
North York

Is buying an assignment condo a bad idea?

So far, I've only purchased pre-constructed condos, because they can normally guarantee me some good profits within 3 years or so.

But I want to move to a certain specific area next year badly

And all the condos currently being built in this area, which I can still purchase directly from builders, are due in 2013 or later.

So I'm staring to considering an assignment sale with an occupy date next year

But are there any benefits buying an assignment rather than buying a new condo built a year ago?

Do I still get tax benefits of buying a pre-constructed condo?

I'm willing to go through PDI and all that, if that gives me more profits in the end.
3 replies
Deal Guru
Feb 29, 2008
14401 posts
10672 upvotes
Assignments are usually a good deal the problem is you need to have a lot of money upfront because you have to pay their down payment nd their profit. Thing is you can negotiate and some sellers can really be desperate and not even ask for profit. It’s a condo so pretty sure that won’t happen. I have purchased on assignment. Nothing really out of the ordinary from buying new. In my case the finishes were already picked.
Jr. Member
User avatar
Aug 11, 2019
177 posts
191 upvotes
Toronto
What ‘tax benefits’ are you referring to?

I’ve bought assignments before, and it has worked for me as I’ll always be negotiating with an upper hand. (Eg, I don’t have to buy if I don’t want to, but there is a reason they are selling: inability to close, wanting to take their money and go, life situation change, etc...)

Only thing that threw me off, is that the lawyer is involved three times, so they get paid three times: assignment agreement closing, occupancy closing, final closing.

You can negotiate with your lawyer to cut you a deal.

Another issue you might run into, is not every mortgagee will lend on assignments.

The big banks will.
Full Time Realtor
GTA & Surrounding Areas
Deal Fanatic
Aug 31, 2011
5551 posts
1164 upvotes
GTA
You need to know the risk and the risk is if the developer cancel the condo project. You only get the original deposit back.

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