Toronto The One | 328.4m | 91s | Mizrahi Developments | Foster + Partners

HAPPY CANADA DAY!

Part 1 of 2 taken on July 1, 2024:

Bay and Cumberland:

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Balmuto Side:

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Back Alley:

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Bloor Side:

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I wonder if you passed by me @Johnny Au (Oh, and your jetpack needs some more kerosene, or dreams, whichever is more fuel efficient for powering it!)
I made a pass through the area around 3 PM, and was glad to see this project today with such clear skies. It's such a difference compared to last year, with less of the wildfire smoke being an issue.
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hawc said:
Blog TO

So without any hyperbole or scare tactics, what's the worst that could happen to the folks who have bought pre-construction in a worse case scenario?

Like would people actually LOSE their deposits, or is worse case you get your deposit given back to you and told if you want what you thought your purchased it's now going to cost way more.

Lots of Sky is Falling going on with articles like this, but what's the worst case scenario for buyers who have a deposit down waiting to move in.
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It would depend on a few factors.

The worst case scenario is really a half built development, because a half built condo is not worth anything. In a receivership or bankruptcy, the secured lenders are always ahead of you (the buyer). So you can hope a new developer can come in and finish the job but there's no guarantee and your deposit is in limbo.

If the development hasn't started, you will almost always get your money back without interest.

The problem today is that many condos are nearing completion and the investor-buyers are unable to secure mortgages due to the values being slashed in appraisal. So they either need to inject more cash into the deal to bring down the Loan To Value ratio, or they can try to beg someone to buy their paper and lose their deposit. If they walk away and fail to close, they should consult a lawyer because they will definitely need one.
 
AdamS said:
The worst case scenario is really a half built development, because a half built condo is not worth anything. You hope a new developer can come in and finish the job but there's no guarantee and your deposit is in limbo.
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Interesting.

So if the condo doesn't get finished or takes years longer than expected your deposit just basically sits in escrow forever?

Like you don't lose it, but you cant' get it back and you have no idea when you will ever see a finished unit so it's just literally limbo.

Am I understanding that right? That's worse case?

But that's not where we are with The One currently. Like they are trying to finish it, it's just taking longer.
 
It will likely be built, but someone is going to have to take some big losses on earlier financing. One of the few businesses left where a risk is truly a risk!
 
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