the pope already covered the issue of The Anvil being dropped on "unsuspecting" buyers' heads with a demand for $20,000 to $40,000 if they want to keep their units pre-bought in good faith almost two years ago, but (holding back expletives) ferchrysaches! Anybody who ponies up for that abuse deserves a good swift kick in the head.
The developer - United Properties -
is a well-known developer in the Lower Mainland with more than 10 recent developments, including high rises and low rises, completed...It’s unusual to see such a successful developer run into major cost overruns. linkerIf they are that successful, let them eat the "cost overruns", and send them into receivership if that's what it takes. The Sophia developer may have found a bunch of fresh fools to sign on for future bankruptcy to save their sorry arses, but this is much later in the game (inventory-wise). I hope the sucke..., er, people who pre-bought refuse to pay more, and that the general masses are beginning to understand that it is all but over, and thus, will not buy. This company should be able to eat something - in light of all their successes. The sad thing is, the bankruptcies are being passed down to those who can least afford it. I bet the President of the company has a vacation home in Maui.
The Great Extraction is playing out.
"Leading Economists" are now speaking openly of a "Global Recession" in the works. I'm no economist, but I have been saying for at least 5 years that a Global Depression was brewing. If these guys are so prescient, why could they not see it?
Don't worry, buy away. Bob Rennie, Cameron Muir and the boys are predicting high, single digit increases.
This started out to be a good rant (up around the block quote), but li'l solipsist refused to nap, and I have been busy for the last 7 hours or so. He took the rant right out of me.
9 comments:
"Anybody who ponies up for that abuse deserves a good swift kick in the head."
Amen...these are the poor souls holding the bag and the market inevitably slowly collapses...
Pat Bell
and the market inevitably slowly collapses...
I dunno, man. The jury is still out on this Vancouver thing. Prices are still going up, inventory is slowing down - anything could happen in Crazy Town.
But. It's no consequence to me because I never did plan on living here that long:>)
There are lots of sunnier and cheaper places to be.
United properties is not the "successful developer" that everyone claims. It has been reported that they filed for creditor protection in 2001.
ATTENTION PRESALE BUYERS: Take a page from the banks' playbooks and do a credit check on the developer with whom you're planning on doing business.
Cracks in the Vancouver market?
Not sure where to post this - but I thought you'd be interested.
Just got an email from Onni Development (major local developer) that they are “buying down” mortgages in 3 of their current developments. By my calculations, this is equivalent to 10% price reduction ?? Is this the beginning of your predictions, Garth?
Pasted it below:
As an Onni VIP registrant, we wanted you to be the first to know about our new incentive:
Aria 1 is now offering a Mortgage Buy Down on a select number of view homes! Move in this summer, with completion estimated for July 2008!
Own from $1,394/Month O.A.C.*
Buying your own home just got easier at Aria, where you can own your own 2 bedroom 1,060SqFt home for an affordable $1,394 per month OAC*. Click here for a floorplan! Lock in the exclusive rate of 2.99% for a full 3 years! Put your money towards your future - this is a limited time offer, so call us today or visit us to view our display suite!
Please visit http://www.onni.com to see the full set of floorplans with features list. All homes feature spacious 8’9”ceilings, floor to ceiling windows, granite countertops, hardwood flooring in living and dining rooms, high-end stainless steel appliances and an over-sized fresh air balconies.
Aria is located in Port Moody’s up-and-coming urban village Suter Brook. At Suter Brook home is the heart of an inspired community sharing access to amenities including: a recreation centre with a full-size squash court, a pool with steam and sauna facilities, together with fantastic retailers including a Starbucks and Thrifty Foods, as well as financial services offered through Vancity and TD Canada Trust!
If you have any questions regarding Aria or for more information on this limited time offer please contact us at the Suter Brook Presentation Centre: 604-552-0552.
We look forward to seeing or speaking with you soon!
Sincerely,
A full-size(?) squash court - would it even be possible to play the game on anything smaller?
anything could happen in Crazy Town.
There are lots of sunnier and cheaper places to be.
Damn straight, but Van. is still about as temperate as you can get in Canada, weather-wise that is.
Thanks for the link jesse.
"However, it sought bankruptcy protection in 2001 in what it called a 'cash crunch.'"
Due diligence? Is that like when your library books have to be taken back?
Thanks for that igies (you are not on Garth Turner's blog by-the-by).
I counted 7 exclamation marks in that spiel!!!!!!! Wow! Are they ever excited! And they want you to be excited too!
Granite and 8'9" ceilings! How do they do it? Oh, I guess they scrimped on the concierge.
$1,394/month *OAC. Is that like a 50 year amortization? And wouldn't that 2.99% for three years be eerily like sub-prime?
would it even be possible to play the game on anything smaller?
Maybe with backwards binoculars? A new demonstration sport for the Olympics - squish squash.
re: "I never did plan on living here that long".
One of the things that has struck me since I moved here is how transient Vancouver is. People are constantly coming and going. Which in my mind would makes it particularly vulnerable to highs and lows. People do move here for the climate/lifestyle (I sure did). But no one seems to realize it's a double-edged sword: if people have the resources and mobility to move here when times are good, shouldn't they also have to mobility to LEAVE if things go bad? Dump their house or condo and simply move on? (or move BACK to Toronto, Saskatoon, Halifax etc). I think it leaves Vancouver in a particularly nasty position during any downturn.
cash crunch:
Someone needs to do a short history of Vancouver booms and busts, scandals and cons! Wasn't there some gigantic mortgage scandal back in the 90's? Eron Mortgage? Those guys just skated! (like all the condo developers following the leaky condo scandal, just like they will after the bubble). BC seems like Canada's ultimate "company town" - show up with a bag of money and a few contacts and you're laughing.
the Sophia.
My daughter's teacher bought one of these places 2 years ago. I spoke with her about it last week. She said it went to court and the judge said in order for the thing to be completed (it was 90% done apparently) the buyers had to cough up enough to make up to 90% of what the place was "worth" today. The other option was to TRY to get their down payments back.
I felt bad for her. She gave them the extra money. My feeling is that she should unload it ASAP. If she can.
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