Preconstruction Condo pricing ( will that change -vely)

[Rocky]

My cousin brother has bought a condo in the project launched by Monarch 2 blocks across fairview mall on sheppard. The project is called Ultra at heron hills and he has bought a 722 sq ft. unit for around 280K. Its pre construction and occupancy is slated for middle 2012. Ever since he bought it in July 2008 recession effects are everywhere and now all i see is him being worried that he made a wrong decision.

Ofcourse there is no backing out - but we wanted to get some second and more opinoins to see if anyone thinks what he did was a mistake. His scare is as the time goes by he could have gotten the same type of condo for cheap and with recession looming everywhere - it seems like by 2012 the value of the condo at the time of occupancy can lower than what he bought it for.

Does anyone have any ideas as to if the prices for preconstruction condos at a time like these would go down then what they are now; in about 3 years time. any advise will be appreciated.

Thanks

 

[cdr108]

IMHO I think he overpaid and won't see his purchase price for awhile.

722 sq ft. unit for 380K = ~$525 PSF, is downtown TO pricing.

When the recession hits hard, prime locations will keep their value better and IMO downtown will do better than North York.

During the 1980s, a friend's father purchased condos dt and in Scarborough. Scarborough dropped like a rock while dt took a haircut.


Monarch currently has a program in effect to refund deposits for anyone who buys and loses their job.

Do you know if your cousin has that in his Agreement of Purchase and Sale?
If not, maybe he can approach monarch and ask them to include that now even though the recission period has passed ... you never know until he asks.

 

[Rocky]

IMHO I think he overpaid and won't see his purchase price for awhile.

722 sq ft. unit for 380K = ~$525 PSF, is downtown TO pricing.

When the recession hits hard, prime locations will keep their value better and IMO downtown will do better than North York.

During the 1980s, a friend's father purchased condos dt and in Scarborough. Scarborough dropped like a rock while dt took a haircut.


Monarch currently has a program in effect to refund deposits for anyone who buys and loses their job.

Do you know if your cousin has that in his Agreement of Purchase and Sale?
If not, maybe he can approach monarch and ask them to include that now even though the recission period has passed ... you never know until he asks.

CDR, My bad. I made a typo. his purchase price was 280K includes parking and a locker. approx price per sqft is 388. Location is right across fairview and very close to Subway. Do you think it was a good price.

As for the clause that you have mentioned that Monarch has in their purchase agreement, I am sure me and my cousin are both unwarae of that. I will ask him to check and will certainly post it back if anything like that is there on the document.

Thanks for your input.

 

[AKS]

If you've bought it already. There's no sense in worrying about it. It can't be worse than walking away from 20% deposit. The prices will recover. When? No one knows.

 

[taal]

My cousin brother has bought a condo in the project launched by Monarch 2 blocks across fairview mall on sheppard. The project is called Ultra at heron hills and he has bought a 722 sq ft. unit for around 280K. Its pre construction and occupancy is slated for middle 2012. Ever since he bought it in July 2008 recession effects are everywhere and now all i see is him being worried that he made a wrong decision.

Ofcourse there is no backing out - but we wanted to get some second and more opinoins to see if anyone thinks what he did was a mistake. His scare is as the time goes by he could have gotten the same type of condo for cheap and with recession looming everywhere - it seems like by 2012 the value of the condo at the time of occupancy can lower than what he bought it for.

Does anyone have any ideas as to if the prices for preconstruction condos at a time like these would go down then what they are now; in about 3 years time. any advise will be appreciated.

Thanks

Why would he want to know he made a mistake which you state there is "there is no backing out" ... the points I'll make is 1) there's always a way to back out in most cases It's just likely to be costly, very costly. 2) If it's an investment I don't think you need any of us telling you if it was a mistake or not it should be pretty clear to you ... if it was for a place for him to live long term 5+ years you can never go wrong.

Moreover, assuming this is not an investment, if he's planning on living there 5 years that'll be a ways into the future as occupancy isn't till 2012 as you state. In other words by then, no one can predict, but considering the area he'll likely be a happy camper when he sells.

 

[luxome]

It's a great location for end users. I'm sure he'll enjoy it when he moves in (if it even gets built ). I know the area very well and i still think that the environment is better than Emerald City across FV mall, regardless of the direct underground access.

When i make a purchase and it becomes a firm deal, i don't even think about it to avoid stress.