Pre-Con Condo (sell or wait till closing)

[Rocky]

Bought a Pre-con Condo a couple years back with potential occupancy in 2013. have done 4 down payments on it already but due to unforseen financial situation we are seeking a way out from this.

Q. Is it smarter to sell (or assign) this pre-con condo prior to occupancy, or would it be smarter to hold off until closing and then sell once its move in ready.

With the uncertainty of the market i am wondering if waiting until closing will cause more $$$ loss due to the addition of closing cost to the gross cost of the condo.

Any and all help is greatly appreciated.

Thank You

 

[simuls]

In this inflated market I would seriously suggest assigning it now and locking up the price. Depending on the area, I would highly doubt you'll get more than you will now in 3 years time and you very well might get less.

 

[Rocky]

In this inflated market I would seriously suggest assigning it now and locking up the price. Depending on the area, I would highly doubt you'll get more than you will now in 3 years time and you very well might get less.

Simuls, Its one of the new condos being built near Fairview mall and the cost is around 387 per sq ft, I am very keen to know how much more could the market get worst in 3 years from now !?

 

[Monaco]

As you know, the profit in 3 years is not guaranteed. Also the closing date might be delayed, so you might not even be able to sell (post-closing) as planned. If you assign now, you will pocket the profit today....presumably when you need the money for other uses.

I know it hurts a bit when you sell too early (aided by hindsight). But I guess you are not in too much of a bind if you are still considering holding on to the unit until closing. How badly do you need to get out of this, could you handle bad/worst case scenarios - what is your level of risk tolerance or aversion?

I personally feel the amount of additional profit in three years, if any, is likely not enough when weighted against the risks and your financial situation (which I know I'm making assumptions about). However, I've been wrong about things like this in the past...and I know hindsight over "missed opportunities" can be painful. I'm also not very familiar with the Fairview area/condo projects.

It might be more helpful if more details about the unit were provided. Maybe your unit is different from the market in general. Good luck with your decision.

 

[Alvar]

If it is near the subway, it should be O.K., although you cannot expect the huge increases of the past few years. It seems like you got it at a good price, so maybe, just maybe, it will turn out to be an 'O.K.' investment/purchase.