Union Margo by Aspen Ridge cancelled

so aspen ridge sold these units before they even had the permits to build them?

Number1boss wrote: ↑ so aspen ridge sold these units before they even had the permits to build them?

They didn't have final approval and never did resubmission/respond to the city's comments. It's not uncommon to sell before final approvals but this is case of escalating costs on a project they sold long ago at much lower construction costs and they're just using city as excuse to cancel

Big black mark on a reputable builder (just like liberty before they canceled their VMC project )

They would've lost money if they built it but if they cancel and sell the land... easily more than double their original cost to buy the land.. guess the profit from canceling and sell the site was too good to pass up and they don't care about hit to their reputation and can comfort themselves with all the money they made by cancelling

Yikes. Anyone know how long these buyers been waiting???

GTA12345 wrote: ↑ Yikes. Anyone know how long these buyers been waiting???

2019 around I think...it was sold pretty cheap and then COVID spiked prices..their costs is probably double what their proforma was now...

So scammy…that’s disappointing from Aspen Ridge!

I am sure this will be back on market shortly, sold at higher prices.

olek86 wrote: ↑ I am sure this will be back on market shortly, sold at higher prices.

Yup. They aren't going to sell the land. They just going to rename and resell

Not sure if I should've expected more from Aspen Ridge or not.

Super disappointing; my friend's aunt purchased a unit here...curious what their "additional benefits" are; probably first dibs on their renamed units at like double the price

There needs to reform done in terms when you can start selling units, especially if the city and or region provides certain conditions on approvals, to many developments have been caught up in a hope and prayer kind of situation it seems lately.

On the other hand, our government is giving developers more tax break to build more affordable home.

no joke, their church charles project is also under water

Imagine that. If the buyer loses money...tough luck. Builder losing money? Cancel it. People need to be very careful buying precon. It feels like a government backed scam.

jacey. wrote: ↑no joke, their church charles project is also under water

Really, any details ?

People talking about reputation … when the rubber hits the road and the numbers no longer work, reputation takes a back seat to profitability. Developers see the macroeconomic trends and know it’s more about staying in the game during the lean years to be around for the boom years. Real estate development, like the broader economy, is cyclical. People will forget about this in a few years.

Also … Purchasers looks at these units as a home or as an investment. Developers see this as product. They make product. If you’re losing money on the product, you stop selling the product.

All to say that instances like this shed a light on the realities of real estate developers and business in general, and isn’t so much an indictment of this builder than a reflection of the overall industry.

JosephB012 wrote: ↑ Really, any details ?

They sold in 2017...not sure they are even above grade yet

oasis100 wrote: ↑ They sold in 2017...not sure they are even above grade yet

2017-- that seems like a long time to not move forward with a project.

TodayHello wrote: ↑ People talking about reputation … when the rubber hits the road and the numbers no longer work, reputation takes a back seat to profitability. Developers see the macroeconomic trends and know it’s more about staying in the game during the lean years to be around for the boom years. Real estate development, like the broader economy, is cyclical. People will forget about this in a few years.

Also … Purchasers looks at these units as a home or as an investment. Developers see this as product. They make product. If you’re losing money on the product, you stop selling the product.

All to say that instances like this shed a light on the realities of real estate developers and business in general, and isn’t so much an indictment of this builder than a reflection of the overall industry.

If it was B2B, there wouldn't be one-sided clauses like there are with B2C contracts like pre-construction agreements.

olek86 wrote: ↑ There needs to reform done in terms when you can start selling units, especially if the city and or region provides certain conditions on approvals, to many developments have been caught up in a hope and prayer kind of situation it seems lately.

as someone who's worked in the development industry before... i think developers wouldn't support this at all since they want to sell early to minimize holding period while also can use excuse of "approvals" to make their case for everything from canceling projects to blaming high prices and delays etc.. it's perfect scapegoat for them.

for a builder as big and experienced as Aspen Ridge, it's just complete BS saying the city approvals is what cancelled their project. They know how close (or not) they were to final approvals and what's outstanding to get them, what city/agency comments are to be addressed etc..they just chose not to respond and then blame the municipality for not giving them approvals. it's an easy cop-out for them..eg in this project... i believe they revised their proposal after started selling adding more units/density etc and of course city asks for revised submissions to support the revised proposal and they never submitted them and just cancelled.

builder could just use city as scapegoat by revising their application to something they know city won't approve (or approve without submitting additional studies/drawings etc) and then say couldn't get city approval and cancel a project. Granted they wouldn't do this all the time as their reputation does take a hit but for Aspen Ridge, they're big enough and can just move on as majority of people won't knwo they cancelled this small project in markham just like i doubt many purchasers know liberty cancelled their VMC project few years ago and gupta despite poor reputation still doesn't have issues selling projects