Ep. 4 - STORYTIME: The Perils of Pre-Construction

The Last Honest Realtor

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In this episode, David Fleming delves into the complex and often controversial world of preconstruction condos in Toronto. Through personal anecdotes, industry insights, and a critical analysis of the market, David explores why he has never sold a preconstruction condo in his 20-year career and highlights the significant pitfalls that buyers face.

David begins by explaining his long-standing skepticism about the preconstruction industry, despite the lucrative commissions it offers. He shares stories from his early career, detailing how he foresaw the current market issues and has been warning clients since 2007. From problematic assignments to project cancellations, David sheds light on the many risks that come with preconstruction investments.

Using specific examples and personal experiences, David examines the history of preconstruction condos in Toronto and how the market has evolved. He discusses the economic viability clauses that allow developers to delay or cancel projects, material changes to units that buyers often have no control over, and the hidden costs that can turn a seemingly good investment into a financial burden.

This episode is a must-listen for real estate professionals, investors, and anyone considering buying a preconstruction condo. Join David as he provides a candid look at the preconstruction market, offering invaluable advice and cautionary tales.

In This Episode:

• David's personal experiences with preconstruction condos
• The history and evolution of the preconstruction market in Toronto
• Economic viability clauses and their impact on buyers
• Material changes to units and buyer rights
• Hidden costs and financial risks in preconstruction investments
• The future of preconstruction condos in Toronto

Timestamps:

00:01 - Introduction 00:30 - Why David Has Never Sold a Preconstruction Condo
01:00 - Problematic Assignments and Market Issues
05:00 - History of Preconstruction Condos and Pricing Problems
06:30 - How Condos Are Built in Toronto
09:00 - Economic Viability Clauses and Developer Delays
11:00 - Material Changes and Unit Modifications
13:00 - Occupancy Issues and Phantom Mortgages
15:00 - Unexpected Closing Costs
17:30 - Creative and Devious Developer Tactics
20:00 - High-Profile Cancellations and Consumer Protections
22:00 - Fiscal Responsibility and Legal Loopholes
25:00 - Developer Agreements and Fine Print
27:00 - The Future of Preconstruction Condos in Toronto
29:00 - Conclusion and Key Takeaways

Don't Miss:

• David’s insights on the Toronto real estate market
• Real-life stories and experiences
• Detailed analysis of preconstruction condo pitfalls

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