CANCELLED--Television City Hamilton Condos
I was wondering what people's opinions were on this:
This is a 2nd tower from the supposedly highly successful tower 1 for television city from late mid to late 2017. It is expected to finish in the summer of 2022.
I was at a platinum event a few weeks ago where they offered assignment, right to lease during occupancy, and capped levies and tarion at 5000.
The developer Brad Lamb was there along with the platinum broker Andrew Le Fleur who has his own podcast, and they were touting Hamilton as a much better area to invest in than Toronto for various reasons:
1. Half the price (downtown vs downtown) but at 70% of the rents, selling at about 588/sq foot right now
2. Growing art and food hipster culture in the downtown
3. Supposedly many big names are bidding on building opportunities right now in Hamilton and over 1 billion will be spent there in the next few years in development.. Tridel, Daniels... etc
4. Similar cap appreciation as Toronto with a lower entry price
5. Significantly lower closing costs
6. Growing health tech services and other tech jobs, not just a steel city anymore
I decided that I would take the plunge on this and picked up a Channel 04 (1 bedroom) on a very high floor, but right now am in the cooldown period and wanted some opinions as I had a few questions for those who want to give their honest feedback. My intention for this property is to either assign it or actually close and tenant it out
1. This is a 4 year preconstruction development, is this actually a risky investment? If the housing market falls into the abyss in the next 2 years is there any way I can choose not to close?
2. One of the incentives was an assignment clause that requires 90% of the building to be sold prior to activation, don't builders usually hold off on a % of units until way later in order to sell them at a higher cost? Based on your experiences assuming reasonable demand for units would it be a likely possiblity that 10% of units be held onto until the last year?
3. There has been media about Hamilton not really liking what this will do to thier skyline and various other battles it appears Brad is fighting with, by signing so early am I taking on unreasonable risk? I suppose Toronto early preconstruction deals with similar issues
4. My particular unit is high up, but it faces directly into tower 1, is there any point to having paid the floor premium with my current goals in mind? Does it actually affect sale price? I was told that because it was only $500 a floor it made sense to go up higher since I can still have a good view from the north and south sides of the terrace.
There are probably more questions that I havent thought of but it is getting late!