Tuesday, November 22, 2016

New Focus: What's Up with Condo Assigns

I am starting this Blog to focus on condo assignments.

Full disclosure: I am a RE/MAX realtor with many years (since 2006) experience in condo assignments in the Toronto (GTA) area.

I want to provide my frank and honest opinions about the state of this market. I also want to hear yours.

Feel free to simply ask a question - that works too.


Opinion #1 - Assignment ROI is minimal these days!

Assignments are no longer a viable investment strategy.

There has not been enough ROI in this kind of a property flip since about 2010 when builders stopped offering aggressive prices and market appreciation stated slipping. Condo market appreciation (assignments and resales) are low single digit (5-7%) compared to the double-digit (25-30%) appreciation on freeholds.

Assignments are a now more of a "bailout option" that often makes sense when buyer's have to sell for personal or financial reasons (job transfer, change of marital status, health, job loss, etc).

Today, I would characterize assignments for sellers (original buyers) as "distress sales" giving the seller the best alternative if they cannot or choose not to close with the condo vendor/builder.

On the other hand, buyers might find assignments attractive to:

  1. Get into a condo project that may be sold out.
  2. Buy in closer to Occupancy or Closing (months vs years).
  3. Not pay any Builder deposits
  4. Get a great deal on the price.
Whatcha think?


No comments:

Post a Comment