digi
Active Member
they did....but no one, not even the builder could tell me for how long I'd be paying...you must have missed that part, again.
|
|
|
Condo buyers should prepare for 'phantom' rent
- Thread starter cdr108
- Start date
they did....but no one, not even the builder could tell me for how long I'd be paying...you must have missed that part, again.
condoboy
Banned
I don't think I missed that part...I agreed that you would have to wait until the condo gets registered and that nobody really knows how long that could be. However it is in the interest of the builder to get the condo registered as quickly as possible...as final closings are only possible after the building is registered and only then are monies from the sale of units released to the builder.
fieras
Banned
What's the problem? Any bourgeousie who can afford to put down 'much more than 25%' should have absolutely no problem paying phantom payments for a few months. Quit being cheap & suck it up buttercup.
Mot
Active Member
I am in agreement with Digi here as we are going through the same thing. Yes, our lawyer talked about the Phantom Rent. We were told it would be just for a few months. We are now about to enter our 10th month of this Phanton Rent at a rate of 7.35%. Our mortgage rate will be far lower than this and we expect our monthly payment to be about $700 less.
As someone pointed out earlier if you are going to be giving the builder a larger down payment than the minimum required, then the lawyers recommend you hold that money until registration. You don't want to give the builder all of your money up front and end up in a building that may have serious problems. It will be harder on the buyer to deal with getting your life saving back than just the minimum down payment.
Then we move onto the continuous lies of incompetent builders like ours Willowfield Winchester who recently sent a letter saying the city is as fault for why we are not registered. The city pointed out to us the developer never sent in the final plans for approval. The city cannot complete the inspections until all the proper paper work is sent in. Who can anticipate that? Not even our lawyer who has over 20 years experience could. As the lawyer stated to me. The builder is just incompetent, they want registration even more than the residents so they can cover all their expenses and move to the next project, yet this builder cannot even figure out the paper work.
We are throwing away good money on this phantom rent and there is nothing anyone can do about it because the developers have all the power in this city.
condoboy
Banned
Shhhh....don't tell anyone I told you this....but you could have...if you really wanted to (without notifying the builder), leased out your condo for the occupany period for 6 months or a year so you are not out of pocket that money...however this may not be entirely legal
You may be able to get away with this however and one could make a strong case in court that you were forced to do this because of the lack of competency on the builders part...I don't know, I'm not sure that anyone has tested this theory in our judicial system...
Mot
Active Member
Shhhh....don't tell anyone I told you this....but you could have...if you really wanted to (without notifying the builder), leased out your condo for the occupany period for 6 months or a year so you are not out of pocket that money...however this may not be entirely legal
Unfortunately, the Phantom Rent for our 2br 2bath is much higher than the rental cost for similar size units in my area. There are people renting in my building, I guess their landlords took the chance with the higher down payments up front.
condoboy
Banned
Mot
Active Member
We're paying $2k per month and we still have no idea when registration will happen. Beginning in October we had to give them six more months of "rent" checks. We moved in February of this year.
digi
Active Member
You reveal your jealousy, you angry little git....It's really not my fault if you're uneducated, unemployed and poor.
Last edited:
Solaris
Senior Member
its really unfortunate that the registration of your building didn't exactly 'work out' ... I'm sure many of us can share / look foward to that frustration ... do you mind if I ask which building / builder that is?
condoboy
Banned
So that's going to be about a year of 2k/month down the drain...sorry to hear that. It's like you mentioned...there is nothing that can be done really, when a builder is that incompetent as to not file the paperwork with the city in a timely manner. I guess there are a lot of people on alert now and are going to be aware of this builders ineptitude!
Mot
Active Member
I share this personal information gladly if it helps others in their buying experiences. We live in The Star of Downtown on Wellesley E. Norstar is the parent company and Willowfield Winchester is their residential developer.
The other issue I have is the management company. We have Taft Forward and they are beyond awful. I hope the board fires them.....as soon as we have a board.
fieras
Banned
You reveal your jealousy, you angry little git....It's really not my fault if you're uneducated, unemployed and poor.
Touch a nerve? Is your shoebox in the sky plummeting in value? Do you need a bailout?
digi
Active Member
Touch a nerve? Is your shoebox in the sky plummeting in value? Do you need a bailout?
No, the value has risen by 50%. Paid off my mortgage a few months ago.....you're almost glowing green with envy though....don't worry, maybe you'll win the lottery and won't have to live in your moms basement anymore.
longre
New Member
No, the value has risen by 50%. Paid off my mortgage a few months ago.....you're almost glowing green with envy though....don't worry, maybe you'll win the lottery and won't have to live in your moms basement anymore.
Eazzzzzzz off the hostility friend. Consider that others are too preoccupied with their own lot in life to be worried about your personal profit or loss.
The issue is phantom rent and I don't think you quite understand the concept. If you owned your suite you'd be paying:
a. mortgage (assuming)
b. property tax
c. cam fees
d. insurance
e. utilities
Does the phantom rent exceed that total? If so, by how much? Assuming a mortgage based on 75% of the purchase price and a 25 year amortization I would bet that you are pretty close to the same all in costs, possibly lower. Add a 5% opportunity cost on your 25% down payment and I bet you're ahead with the phantom rent. You want to pay down some equity on that mortgage meantime? Throw a couple hundred bucks in the cookie jar every month for your occupancy period and use to take a smaller mortgage. That's about as far as you'd get on a 25 year amortization anyway.
And, if you bought your condo with cash or with a giant DP then great! That's hundreds of thousands of dollars sitting in your bank account (hopefully not in a mutual fund!) that is earning you interest right now.
Stop hating the developer. He's doing exactly that what he's legally agreed to do. He wants the building registered more than you do, I assure you.