650 King West (Freed Developments) - Real Estate -

If they register when the Bathurst building is complete, then a lot of people at the King building will be paying phantom rent for a very long time. I would be really upset about this.
 
drewp said:
If they register when the Bathurst building is complete, then a lot of people at the King building will be paying phantom rent for a very long time. I would be really upset about this.
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That looks to be the case unfortunately...
 
starks0980 said:
That looks to be the case unfortunately...
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I've come to terms with the fact that I will never purchase pre-construction again with Freed. I thought by doing so I'll be able to make a decent ROI (considering the neighbourhood, sales pitch on the building and the "Freed" reputation for quality), but it's passed that point 2.3 years ago. Being that I'm already in the King building paying occupancy fees, potentially looking at another 18 months before I take ownership, just adds another 33K in losses.
Whatever, I partially to blame for buying into the hype.
 
I think we are probably all getting a notice (Bathurst building). I received mine yesterday advising that occupancy was delayed 2 months.
 
Illy said:
I've come to terms with the fact that I will never purchase pre-construction again with Freed. I thought by doing so I'll be able to make a decent ROI (considering the neighbourhood, sales pitch on the building and the "Freed" reputation for quality), but it's passed that point 2.3 years ago. Being that I'm already in the King building paying occupancy fees, potentially looking at another 18 months before I take ownership, just adds another 33K in losses.
Whatever, I partially to blame for buying into the hype.
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It won't be 18 months. It will be registered sometime before the end of the year. I would not consider the occupancy fee as a loss. The occupancy fee contains the maintenance fee and property taxes that you have to pay no matter what, even after the registration. on the other hand, you still owe Freed the 80% of the property. it's like a loan that they are giving to you with a very good rate of 3.5% (current rate).
 
The occupancy fee contains the maintenance fee and property taxes that you have to pay no matter what, even after the registration
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It also contains a large amount of rent, which you will never see again and will gain you nothing.
 
If it was property taxes and maintenance fees then you should be paying anywhere from 400-700 a month which I am sure you are not. It is a weird and complicated formula that they use from talking to a lawyer about it. Either way the Bathurst building better get moving!!
 
drewp said:
If it was property taxes and maintenance fees then you should be paying anywhere from 400-700 a month which I am sure you are not. It is a weird and complicated formula that they use from talking to a lawyer about it. Either way the Bathurst building better get moving!!
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There is nothing weird and complicated in that formula, it is just the maintenance fee plus the property tax plus the interest on the money you still owe to the builder (80% of purchase price...you have already paid 20% deposit). that is not a rent, there is not any rent involved. it is just interests on money you still owe and the rate is only 3.5%, which is very low, just 0.5% above prime
 
In addition, occupancy fees are not really money completely wasted, since presumably you are living there when it is ready for occupancy, and you obviously dont get to live for free anywhere except at your parents home. What would have gone towards your mortgage during that period is minimal anyway since in the first year, very little principal on your mortgage is paid down anyway, just mostly interest.
 
carturo15 said:
It won't be 18 months. It will be registered sometime before the end of the year. I would not consider the occupancy fee as a loss. The occupancy fee contains the maintenance fee and property taxes that you have to pay no matter what, even after the registration. on the other hand, you still owe Freed the 80% of the property. it's like a loan that they are giving to you with a very good rate of 3.5% (current rate).
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...I'm still never going to buy pre-construction again, but thanks for the breakdown ;)

ps, just to state: if I'm paying close to $2000 and I subtract condo fees (which by the way has to be a joke considering the state of the building...should I really be paying 100% condo fees?? Hell no!), about $200 for property tax and probably $20 for mortgage interest, I'm still left with $1200 out of pocket and a year to 18 months of dealing with condo discrepancies. I'd rather pay my own mortgage interest (rather than principle) in the first year because this has to happen in the life cycle of a mortgage.
 
Did you pay your full purchase price up front on occupancy? I don't understand how you are only paying $20 interest, that means you owe to Freed only $7000 out of your purchase price. Now if you did so, then your occupancy fee should not bee that high, only maintenance fee and property tax estimate
 
Any recent news on this project? I'm guessing since we're inside the 3 month window they are on target for occupancy in the Bathurst building? Maybe no news is good news....
 
Does anyone know who to contact about some repairs to common elements? For example, in the entrance area where cars drive in, on King Street, there is damaged aluminum on the ceiling (on the outside of the building). This would have likely been done by a construction vehicle since its too high to have been caused by a moving truck. There are also loose bricks on the ground where you drive in.

Also, the light in the first bench of the lobby has been burned out for months. There are also bulbs burned out over the conceirge desk. Lights should not burn out this quickly, so perhaps its an electrical issue.

These issues have been like this for months. Any suggestions on who we can contact?
 
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