The ONE - Toronto Condo in $1.6 Billion Debt, Now Placed into Receivership

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🏢 The iconic Toronto condo project, "The One," is making headlines as it faces receivership with $1.6 billion in unpaid debt. This is the hottest condo news in town, and we're here to break it down for you!
Timestamps:
00:57 #1 The Story
03:07 The Reasons Why I Talked My Clients Out of The One
06:39 #2 The Receivership
08:50 #3 The Purchasers & Possible Outcomes
13:25 #4 Implications for Other Investors
Ever since this news broke, we've received numerous messages from our KZbin fans, clients, fellow agents, and developers. We understand there are rumors, confusion, and concerns, so we're here to provide clarity and insight.
In this video, we'll cover:
🔹 The Background: Exploring the history of The One condo project, from its ambitious beginnings to the present challenges.
🔹 The Receivership: Understanding the financial issues that led to this situation and how it impacts the project's future.
🔹 What It Means for Purchasers: If you've bought a unit in The One, we discuss potential outcomes and how this receivership affects you.
🔹 Implications for Other Investors: How this development may impact the broader pre-construction condo market and what to consider if you've invested in other projects.
Join us as we navigate the complexities of this high-stakes situation and provide valuable insights that go beyond The One condo project. Whether you're an interested buyer, investor, or simply curious about the Toronto real estate scene, this video offers important information you won't want to miss.
Stay tuned to the end for the latest updates on this matter. Don't forget to like, subscribe, and hit the bell to stay informed about the developments in this story and more in the world of real estate. Your peace of mind and understanding are our top priorities. #TheOneCondo #RealEstate #TorontoCondos

[@RaymondKeen.]

For newbies, be aware that this is a grossly oversimplified scenario. For one thing, you can't get a mortgage on an investment property without at least 25% down payment. Two, it's easy to see comps for house purchase prices, but it takes a lot of research to understand the comps on rent prices. The trick is to find a place where renting is more expensive than buying, but those places are less common because of this very type of scenario. Three, you have to remember that rent number he's using is supposed to be net income, not gross. So you have to think about costs for taxes, insurance, maintenance and vacancy when you're researching investments. All that said, real estate investing is a good tool for wealth accumulation. But it isn't foolproof.

[@SandraDave.]

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[@SpruceMoose-iv8un]

@Formancando Immigration rates are too high, our infrastructure can't handle it, it's going to take 20 years of construction and 20 years of low immigration rates for costs to come down.

[@geofflepper3207]

​@@SandraDave. With over 100,000 people coming to the GTA each year and not enough new housing being built in Canada and interest rates likely to fall somewhat over the next few years I'm not sure why you anticipate home prices falling. Some forecasts have the GTA rising in population to about ten million people by 2043. All the new people will create demand for housing.

[@julianb1474]

I think you are 100% correct wrt the reputation of the developer. My son has a deal for a condo town in a project in the North Beach that is by a very small developer, and has been excruciatingly slow in construction and well past promised dates. I believe that the sub-contractors in a busy construction market simply won't bid to small developers, since they have more reliable generals to bid to, resulting in haphazard construction by the lowest grades of contractors. Delayed construction means increased costs, especially so in a rising rate environment, and then there is the issue of quality. There is an aspect of condo development that I'm not sure you have discussed - that it's the type of development where the developer has the greatest incentive to cut costs in construction, meaning reduce quality wherever possible, and the developer most likely to do this is a small one without a reputation to maintain.

[@VirtousStoic]

Music is too loud, distracting and annoying. Plz change and lowee thw volume. But excellent video. I just subscribed. Wish you the best in your career

[@Joe-mz6dc]

Good video but I suggest you mix the audio quite a bit lower. Maybe 50% lower.

[@jooky87]

Great in depth explanation

[@mohammedrezahekmat1754]

Thanks Dan for your invaluable information. Appreciated.👍👍👍

[@kayvansaberi7819]

Good report. Music is too loud.

[@WesWoychyshyn]

I do believe that a lot of these events have been preplanned! How do all the wheels all fall off the wagons at the same time?

[@nt007]

The buyers have a contract to buy a condo at price X. My question is how come developer can increase the price after contract? Is that legal in Canada? (Referring to some options at the end of the video)

[@kellyhou9594]

Technically, not. But if the developer declare bankruptcy, then it will be the same and why do you want to bother yourself with lawyer cost?

[@bobnandez]

Real Estates worst enemy is time because that would increase financial and administrative costs beyond the expected margin of profit and ultimately biting off developers equity. Un unfinished building is a loss for everyone. A finished building could beba loss for developers but at least lenders and customers get their moneys worth delivered.

[@greatestsportslegends]

Curious to know if there is a precedent for a class action lawsuit for current owners/investors should the developer/investment bank decide to either cancel the agreements outright or a steep increase is demanded.

[@kellyhou9594]

I don't think much can be done. The developer can also declare bankruptcy. This had happened too.

[@AnitaSridhar]

What condo builder do you recommend

[@OurCuriousMind]

tridel

[@kathyfreeman9596]

Thanks for sharing always great updates and thank you for always keeping us informed ❤

[@dougiep2769]

It’s just the first. I suspect it will take a lot of banks down when it’s all over. Think I saw a 250 million lose in 3 yrs on a San Francisco property. All the office buildings and condos are way over valued like criminal over valued

[@jayblair4344]

very good content

[@joessonguf]

Music too loud...

[@juniorcampbell2980]

I guess the developer will not be exercising the right to increase the building to 95 storeys. The units in the building seemed overpriced

[@richardadams6988]

Who's gonna clean up this mess !!!

[@kevinl7173]

I think 10.6 billion is more accurate

[@spencerji6162]

Why do not you say something much information before?!

[@hassanjalal822]

🎉

[@richardadams6988]

So now what !

[@incarnation8985]

About the KEB bank, this guy is not delivering 100% correctly. Better be corrected and clearlify with KEB Hana Bank before go public. It needs to change the terms. He mentioned the name of the Country. It's wrong man. All men from Hong Kong do this wrong thing with their lips. It's wrong man!😮

[@shirleymeier2367]

Karma?