Toronto Condo Projects went into receivership

[Hai Loc]

https://www.livabl.com/2020/03...

Hundreds of deposits in jeopardy.. 

Rising costs depleted all margins..

Going to be a domino effect with other newer projects 

Only the "Bigger" and deeper pockets will survive..

Might see a plethora of inventory for Toronto condo assignments..

[Chad U.]

Originally posted by @Hai Loc:

https://www.livabl.com/2020/03...

Hundreds of deposits in jeopardy.. 

Rising costs depleted all margins..

Going to be a domino effect with other newer projects 

Only the "Bigger" and deeper pockets will survive..

Might see a plethora of inventory for Toronto condo assignments..

 This developer going belly-up wasn't due to the coronavirus pandemic, it seems like they have been living in a glass house just waiting for something to shatter it, and this was the catalyst.  Unfortunately, this has been the way of the Canadian real estate market for the past 5+ years - leveraged to the hilt!

This is also analogous to home purchasers who don't have enough down payment so have been borrowing from the bank of Mom and Dad, or getting high rate 2nd/3rd mortgages (that aren't registered on title) to prove their downpayment to the banks.