Stefan said:
Insane or not, developers wouldn't be charging these prices if the demand wouldn't be there. Whether the demand is coming domestically or internationally, that's a different story.
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I don't there are too many end users. Mainly investors (domestic and international). Seeing prices close to $1M precon for a decently sized 2 bedroom is just wild to me. If the market falters the a lot of people will be completely ruined.
 
If most of those people who will be ruined are the investors, I can't say I'll feel sorry for them. The problem is that they'll bring down with them the honest people who saved up to get a place to call their own.

TheKingEast said:
I don't there are too many end users. Mainly investors (domestic and international). Seeing prices close to $1M precon for a decently sized 2 bedroom is just wild to me. If the market falters the a lot of people will be completely ruined.
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I never said being an investor is dishonest. Just because I said honest people who want to save up and live in the units doesn't mean those who don't do that are the complete opposite (i.e. dishonest), that's absolute-thinking. It's not black/white, 1/0, ying/yang.

My point is if there is a correction in the housing market, I'd honestly feel bad for families who saved up to purchase units with the intention of living in them, but those who bought them as investment vehicles, even purchasing multiple units at once? *shrugs with indifference

Anyways, we'll see once the project launches what the prices look like but given that it's King West, most definitely $1,100+ psf. Sugar Wharf was around $1,000 and that was not in the entertainment district.

pman said:
How is buying a condo with the intention to rent it out dishonest?
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pman said:
How is buying a condo with the intention to rent it out dishonest?
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It’s more of investors flipping units, reselling units before it closes and doubling or tripling the money they made from solely their deposits, also known as assignment sales.
There are tons of assignment sales being made. They are not allowed on MLS, but some do appear. I think this is more unscrupulous as these investors have no intention of going through with the sale and selling before it closes.
Vancouver at one point was thinking of outlawing this, but so far developers has hiked the fees for assignments, as many properties could be flipped multiple times before it actually closes.
 
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I've noticed quite the opposite: developers waving the assignment sale fees as part of VIP sales but you're right, whenever a new development is nearing completion, you see a flood of units on the market.

These are the people flipping the units before the building gets registered, when they're required to get their mortgage. It's not uncommon to purchase units in bulk as long as you have the funds for the initial deposits because you don't need a mortgage preapproval.

neuhaus said:
It’s more of investors flipping units, reselling units before it closes and doubling or tripling the money they made from solely their deposits, also known as assignment sales.
There are tons of assignment sales being made. They are not allowed on MLS, but some do appear. I think this is more unscrupulous as these investors have no intention of going through with the sale and selling before it closes.
Vancouver at one point was thinking of outlawing this, but so far developers has hiked the fees for assignments, as many properties could be flipped multiple times before it actually closes.
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Stefan said:
I've noticed quite the opposite: developers waving the assignment sale fees as part of VIP sales but you're right, whenever a new development is nearing completion, you see a flood of units on the market.

These are the people flipping the units before the building gets registered, when they're required to get their mortgage. It's not uncommon to purchase units in bulk as long as you have the funds for the initial deposits because you don't need a mortgage preapproval.
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This. Developers speak in dollars so they're going to accomodate buyers who want to flip. Funny enough, the first property I bought was on assignment. The up front money was nowhere near what people are asking for these days.
 
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