Today I have my Real Estate Investor hat on and wanted to share a story with you.
Approximately 4.5 years ago, I purchased a pre-sale investment property in Kitchener, Ontario. For those unfamiliar with how new development projects work, the developer requires 60-80% of unit sales and deposits to secure funding from lenders to commence the project otherwise a shovel doesn't get into the ground.
As things unfolded with this particular purchase, COVID and the aftermath more or less devastated the project and the developer went into receivership. This process has been long and drawn out and here we are 4.5 years later and still there hasn't been a conclusive outcome. This afternoon, the company overseeing the receivership called to inform me that the new developer looking to take the project over is offering me an 'opportunity'. Basically, if I want to proceed with the purchase of my property, I will have to pay them a 26% increase! You read that right. I have been held hostage to a purchase contract that was breached by the original developer, I have been stuck and could not exit the deal and get a return of my deposit and now I am being blackmailed by the project's 'saviour'. The worst part... there are two Ontario Court judges presiding over this and of course there is ZERO consumer protection. Pretty interesting considering all of the talk about 'greedy developers' and ' greedy investors'... it's nothing more than theatre and you are fully exposed and the government bodies are not going to make sure you don't get thrown under the bus.
What are your thoughts on this topic, all comments are welcome!
CLICK HERE TO WATCH VIDEO: https://youtu.be/r0XfRrj5jfs?si=C8x6HC_XOlQD0YrI
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