Another idiot article stating the Trumps issues with it's business and commercial investors signals the end of the Toronto Condo Boom. Are these fools idiots? How does Trump which is a commercial and hotel project, have anything to do with the Toronto "Condo" Boom. Mind you yes there are condos in the Trump Tower Toronto, but none of those purchasers is the aggrieved in this case. All those complainants in this case, are those that purchased the commercial class Condo-Hotel Units. You don't need a degree in business to figure out the difference in the two asset types, namely being that your return will be higher in the good times with this investment, and you'll have your pants pulled down in the bad times. And the hotel just opened, and these novice business class investors want to make a million dollars on their first day. That is just pure greed.
This building, of all buildings has the least to do with the general condo market in Toronto, first of all it's uber luxury, that's extreme luxury for our non-German Readers, and most condos in Toronto don't sell for 1 million plus, or 2 million plus. This is extreme high end in addition there is a commercial component as the Condo-Hotel Units will be run as a business, just like if you went out and bought a Pizza Pizza Franchise or a McDonald's and Tim Hortons. Here you are buying a Trump Condo Franchise, with your condo unit. You win some, you lose some.
Here is a link to the article and a forward.
We bought into the Trump name and what we were being told was a hot real estate market in Toronto for this kind of project,” Crockett said in an interview. “It turns out that the hotel had nothing to do with him and that it isn’t a good investment after all.”
The brewing legal trouble is the latest sign that the real estate boom in a city with more skyscrapers under construction than any other in the world may be cooling as sales drop and prices climb. Canadian Finance Minister Jim Flaherty tightened mortgage lending rules in June and criticized “continuous building, without restriction” of condos. The central bank said last month that record consumer debt and the chance of a sudden housing correction are major risks to the economy.
Bloomberg Trump Report
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