Admit it – you thought I was going to say “Game of Thrones.”
You saw the caption, and your mind automatically went there, didn’t it? What is with this show? Is it really that good? Should I take a week off work and play catch-up?
Today’s blog post has a regal theme, and shows you how royally screwed you can get by trying to “flip” pre-construction condos in 2014. I’m not talking about 2007, and I’m not talking about buying a condo to live in – I’m talking about flipping pre-construction condos, today, and how there’s no money in it anymore.
Numbers don’t lie. Have a look…
I’ve been saying this since 2008.
There’s no money to be made in flipping pre-construction condos anymore.
The City of Toronto has DOUBLED development charges for condominium builders. Who do you think is going to pay for that? The developers? Or do you think they’re going to pass it on to the buyers?
Some downtown condo projects are charging over $700/sqft in pre-construction, and yet you can buy a resale condo in a one or two-year-old building for $550/sqft.
Every week, I get a phone call from somebody who is in occupancy, bleeding money each month, or somebody who just closed on a condo and now wants to sell – while forty other speculators in the building try the same.
I was sickened to see an article in a major Toronto newspaper a few weeks back with “experts” in “investing” in pre-construction condos.
I’ve made my name on being the most honest and forthcoming Realtor in Toronto, and even though it could cost me business, massive 6% commissions, and anger other Realtors, let me say it again one more time, for the last time:
You cannot expect to purchase a pre-construction condo in 2014, hold it until it’s finished, and then flip it for a profit.
God Speed, for those that do….