Laval families livid, fear loss of life savings following developer’s bankruptcy

Sounded like a scam.. Moreyou give, more discount? 60% discount sounds too good to be true.

Is it true that there's warranty protection of only up to $50k deposit? is this the federal rule?

Seems low.....there is risk with buying pre-con houses.

Fantastical wrote: ↑ Is it true that there's warranty protection of only up to $50k deposit? is this the federal rule?

Seems low.....there is risk with buying pre-con houses.

feds have no jurisdiction on these matters. these are strictly provincial

eg in ontario, there is also capped amounts tarion will reimburse for ground related purchases if developer goes broke.

$600,000 or less Up to $60,000
Over $600,000 10% of purchase price
(to a maximum of $100,000)

for condos there's more protection in that all deposits paid are held in escrow by a lawyer so most a purchaser will lose are unrealized gains and not their actual deposits

Okay, i recall there's more developers declaring bankruptcy when real estate price goes up significantly during construction.

An additional risk with buying pre-con to be aware of

StatsGuy wrote: ↑ feds have no jurisdiction on these matters. these are strictly provincial

eg in ontario, there is also capped amounts tarion will reimburse for ground related purchases if developer goes broke.

$600,000 or less Up to $60,000
Over $600,000 10% of purchase price
(to a maximum of $100,000)

for condos there's more protection in that all deposits paid are held in escrow by a lawyer so most a purchaser will lose are unrealized gains and not their actual deposits

Fantastical wrote: ↑ Okay, i recall there's more developers declaring bankruptcy when real estate price goes up significantly during construction.

An additional risk with buying pre-con to be aware of

Can also chime in to say that materials and labor prices are up highly as well.

My friends in construction constantly talk about labor shortages which means he commands higher rates. I'm also invested in steel personally and steel pricing is at its ATHs right now with no indication of it dropping anytime soon. Not to mention the delays and shortages of containers in the shipping industry, which further adds to risk of developers going "bankrupt" as all these different factors turn their projects into a loss.

There was a thread on Reddit about US homebuilders straying away from new builds due to the heavy uncertainty of materials prices.