Toronto Charlie Condos | 122.83m | 36s | Great Gulf | Diamond Schmitt

Bubba said:
Perhaps they have sold enough units to begin construction. However, they would like to extend the completion date as far out as possible so that when the building is complete, the recession has passed, and the remaining units will be able to be sold at a premium.
... I believe this area will be selling at least $500 per sq. ft. once things turn around.
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Considering units have been selling for $500 PSF now, that doesn't give any appreciation to purchasers after 3-4 years wait.


From what I know, they can extend the viability date 18 months from this June (permitted to extend 3 times for 6 months). I could see them not beginning construction until next April or so....

Just my thoughts..... But could be completely wrong!
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You may be right ... just doesn't sit well with me that buyers are subjected to the whims/discretion of the developer and assume such risk with no return.
 
cdr108 said:
You may be right ... just doesn't sit well with me that buyers are subjected to the whims/discretion of the developer and assume such risk with no return.
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If all timelines were up to the "whims" of developers, most projects would enter the construction phase as quickly as possible - time is money and every day a site sits idle or in pre-sales is costly. A quick planning process, pre-sale window and construction phase is good for the bottom line... many of these sales offices cost upwards of $100,000 to operate every month and all the other associated overhead/soft costs of financing, running a head office, sales & marketing, land financing/mortgage, legal fees etc favour a quick turn-around to get the keys in a purchasers hand. There are a wide variety of factors, many of which are beyond the developers control which lead to extended timelines.

If buyers want to minimize their risk there are other options besides pre-sales in a slow economy... the developers are also at considerable risk themselves.
 
Mike in TO said:
If all timelines were up to the "whims" of developers, most projects would enter the construction phase as quickly as possible - time is money and every day a site sits idle or in pre-sales is costly. A quick planning process, pre-sale window and construction phase is good for the bottom line... many of these sales offices cost upwards of $100,000 to operate every month and all the other associated overhead/soft costs of financing, running a head office, sales & marketing, land financing/mortgage, legal fees etc favour a quick turn-around to get the keys in a purchasers hand. There are a wide variety of factors, many of which are beyond the developers control which lead to extended timelines.

If buyers want to minimize their risk there are other options besides pre-sales in a slow economy... the developers are also at considerable risk themselves.
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The 'whims' go beyond timelines ... I refer to the change in materials, features, size of suite, columns that maynot be detailed in the unit's diagram, etc. which developers are given unilateral 'discretion' according to the Agreement of Purchase and Sale ... pretty much a one-sided contract.
 
cdr108 said:
The 'whims' go beyond timelines ... I refer to the change in materials, features, size of suite, columns that maynot be detailed in the unit's diagram, etc. which developers are given unilateral 'discretion' according to the Agreement of Purchase and Sale ... pretty much a one-sided contract.
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I agree in part - but 'whims' is a rather strong statement. There are reasons why changes occur, however developers sometimes fail to adequately communicate those reasons to purchasers. The contract isn't entirely one-sided, but developers will exercise their rights to make alterations to complex construction projects - sometimes changes are absolutely necessary and other times they definitely tread into that 'grey' area and there are developers with good reputations and bad reputations for how these issues are handled. Buyers can always go to the resale market if they want to see every last detail in advance, otherwise retain a lawyer to review the purchase of sale agreement and get everything you can out of that agreement...

Last year Tarion implemented a much more consumer friendly delayed closing/occupancy warranty in which the builder warrants to the purchaser that, if the closing is delayed beyond the firm closing date (and there are new, tighter sets of delayed closings provisions detailed in the builder bulletin) that there are specified compensation packages available... this has had the effect of tightening timelines and more realistic assumptions made in purchase of sale agreements.
 
construction started on Charlie ??
 
grey said:
The asinine question was a waste of bandwidth
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well sorry to have not caught on to the sarcasm, since I don't live downtown I would never know if some significant advancement actually happened on site ;)
 
Solaris said:
well sorry to have not caught on to the sarcasm, since I don't live downtown I would never know if some significant advancement actually happened on site ;)
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I didn't mean your question... and may I say you seem to be more on top of things than a lot of people who do live downtown ;)
 
Extension of Economic Feasibility

It looks as though Charlie did not reach their sales targets by the June deadline. Just received a letter stating that they're extending the deadline to December 1, 2009. :(
 
aiekon said:
It looks as though Charlie did not reach their sales targets by the June deadline. Just received a letter stating that they're extending the deadline to December 1, 2009. :(
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To be expected ... report came out last week that indicated new-home sales down by 26 per cent in April compared with last year; year-to-date sales are down by 52 per cent compared with 2008.
 
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