Real Estate

Condo Assignment Offers

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  • Oct 28th, 2019 9:51 am
[OP]
Sr. Member
Mar 13, 2017
999 posts
1180 upvotes

Condo Assignment Offers

I've noticed a significant increase in the amount of spam I'm receiving for condo assignment sales suggesting discounts to market and/or distress situations.

Normally I would dismiss as gimmick assuming it's agents pitching paper, however on closer look it does appear as if certain developments have pools of buyers looking to flip paper at a loss to get out.

Anyone focusing on this market with added insight?
9 replies
Banned
Aug 23, 2019
897 posts
456 upvotes
1cat2dogs wrote: I've noticed a significant increase in the amount of spam I'm receiving for condo assignment sales suggesting discounts to market and/or distress situations.

Normally I would dismiss as gimmick assuming it's agents pitching paper, however on closer look it does appear as if certain developments have pools of buyers looking to flip paper at a loss to get out.

Anyone focusing on this market with added insight?
interesting.
which developments, what area? Toronto core, etc, etc??

and how much of a loss
[OP]
Sr. Member
Mar 13, 2017
999 posts
1180 upvotes
seems to be a mix across the GTA.

seems a lot of the same is being pitched on Kijiji under "assignments"
Deal Fanatic
User avatar
Dec 11, 2005
8320 posts
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TO
1cat2dogs wrote: seems to be a mix across the GTA.

seems a lot of the same is being pitched on Kijiji under "assignments"
Was thinking the same when I browsed Kijiji, don't know if it's the buyers who can't close or are just trying to cash out on equity. Like given the rent and all expenses, I'm not sure how folks are able to even break even with these glitzy condos popping up everywhere.
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Jr. Member
Jul 31, 2018
161 posts
60 upvotes
1cat2dogs wrote: I've noticed a significant increase in the amount of spam I'm receiving for condo assignment sales suggesting discounts to market and/or distress situations.

Normally I would dismiss as gimmick assuming it's agents pitching paper, however on closer look it does appear as if certain developments have pools of buyers looking to flip paper at a loss to get out.

Anyone focusing on this market with added insight?
Selling at a loss is unlikely for condos in the GTA market though. Plus keep in mind when you purchase an assignment, you need to have all the funds upfront, and the taxes.
Deal Addict
Jan 17, 2006
2160 posts
2272 upvotes
Toronto
I browsed kijiji recently trying to find a deal and could not.
Most assignments are advertised at around market price with hefty profit.
Deal Addict
Dec 4, 2016
1886 posts
912 upvotes
Maybe you're seeing more assignment spam because there's more condo completions and people are actually buying assignments? The condo boom started about 4 years ago (a year after oil crash), so it's about time the first wave of condos hit the completion time.
For what it's worth, I personally knew people who bought assignments for personal use. Everything went as smoothly. The flipper made about 12% on the purchase price, (or 50% of down payment), and the end user got a place to live for slightly less than what the builder wants for the few remaining units in the building that are the right size.
[OP]
Sr. Member
Mar 13, 2017
999 posts
1180 upvotes
BlueSolstice wrote: Maybe you're seeing more assignment spam because there's more condo completions and people are actually buying assignments? The condo boom started about 4 years ago (a year after oil crash), so it's about time the first wave of condos hit the completion time.
For what it's worth, I personally knew people who bought assignments for personal use. Everything went as smoothly. The flipper made about 12% on the purchase price, (or 50% of down payment), and the end user got a place to live for slightly less than what the builder wants for the few remaining units in the building that are the right size.
slightly less than the last few units the builder has in inventory is probably close to peak pricing for the product.
Deal Addict
Dec 4, 2016
1886 posts
912 upvotes
1cat2dogs wrote: slightly less than the last few units the builder has in inventory is probably close to peak pricing for the product.
Probably. In this case, buying assignment allows the buyers to get a new (never lived in) unit without waiting for the building to complete. It's like buying a car off the dealership lot that has not been used for test drives. In some ways, they're paying for the "new condo smell".
[OP]
Sr. Member
Mar 13, 2017
999 posts
1180 upvotes
BlueSolstice wrote: Probably. In this case, buying assignment allows the buyers to get a new (never lived in) unit without waiting for the building to complete. It's like buying a car off the dealership lot that has not been used for test drives. In some ways, they're paying for the "new condo smell".
When sourcing a vehicle, the best deal is always inventory available with dealership. If dealer has to trade for it, or factory order, it's not going to be as good as if the dealer has it on the lot.

I suppose if we're going to treat decent size condos in good buildings like Ferrari's, than yes - your comparison would apply.

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