Dozens of buyers who thought they were buying their dream homes in two Oakville housing projects early last year when the real estate market was still riding high, say they never expected home values wouldNow their builder, Mattamy Homes, is selling the same kind of pre-construction houses in the same communities for as much as hundreds of thousands of dollars less — a move the purchasers say is undermining their already impossible financial situation.
Now Soroha is wondering about walking away from that money but, like other buyers, fears the company will sue him if he doesn’t live up to the agreement to purchase.The company said it doesn’t control the fluctuations of the real estate market and that it expects buyers to honour the agreements they signed.
“We are in a desperate situation. We are prepared to lose what we have to lose but it will be a big, big financial devastation for most families in that community,” said Soroha.fallen home prices Kamran Ahmad, who is supposed to close on a house in Mattamy’s Upper Joshua Creek development this spring, said Mattamy’s new price structure directly impacts his ability to obtain a mortgage.
He said buyers should be allowed to back out of pre-construction sales without penalty and with their deposits refunded if the builder drops home prices below “a reasonable percentage” such as 5 per cent or 10 per cent or, if interest rates increase above a “reasonable value.” “Price reductions within Mattamy communities, including those in Oakville, are in line with the broader housing market,” said the email.
No whats worse is buying a new build top dollar..facing delays.. and then losing out on selling your current home at the peak because JustinTrudeau couldnt cpntrol his spending & bankofcanada Tiff increasing rates. Now everyone is screwed housingmarket cdnpoli cdnmedia
'Soroha said he doesn’t know who he blames more — the builder, the Bank of Canada, which raised interest rates eight times between March and January, or Prime Minister Justin Trudeau.' The answer is right behind his nose: Ajit Soroha is to blame.
Would they be complaining if prices increased? You took a chance and it didn’t work out, your fault for not knowing assets appreciate and depreciate depending on the market.
Isnt that the risk of buying a house?
I have zero sympathy this was projected and reported over and over. You signed the paperwork it's no one's fault but their own. crymeariver
Talk to our leader, the inflation creator mr Trudeau.
This guy bought 2 homes, attempting to profit off speculation… investors claim they deserve their profits because of risk, but then when they lose money they cry it’s unfair? Hahah give me a break!
Are these the same fake conservatives who are always champions of the free market and capitalism? Sorry, the system has risks. There are so many fake conservatives who want to eliminate risk and guarantee returns for rich people. That's not capitalism.
Good number of these buyers are either move-ups or specilatives. They are part of the problem.
They took the risk by purchasing a home that every expertsaid was the peak and feds were signalling rate increases
Isn't that the risk of investing?
too bad so sad like the stock market goes up and down
The housing market is like the stock market … while you try to buy low/sell high sometimes it’s the opposite.
ha ha
Who couldn’t see that coming? It’s common sense. This is why people sell when high and then move in with family or rent so they can wait to buy when low.
People can not even afford to buy one home in this housing market crisis and this person decided to buy two for 2.4M each! Obviously, he didn’t buy to live with his family rather to make profit and rent out. That’s a huge risk. Why didn’t he bother to assess market conditions?
lol….who did not see that coming!!!!! History repeats itself!!!!
Who’s fault is that?
I saw the pic and i already don't trust this dude
That was the risk they took knowingly.
Anyone highly leveraged in the stock market who doesn't understand what they are doing is really in a casino. It rarely happens, but the same can apply to real estate.
Sucks to be you
Its not market peak. Its like everyone rushed to buy a house. They say If not now, we can never buy a house. And Real estate agents are not real. They convince the customers that, 'No, its gonna go soo high'. The age where no buyer see the seller later get into Title isseus!!
Thank liberals and Bank of Canada. They know your screwed but don’t care as long as rich get richer
No pity for the fools who bought homes in a ridiculous market. ZERO!!!!!!
If you invest in equities you are literally told right up front in any prospectus that you might lose your entire investment of business climate changes… these people invested in a speculative equity (houses) and displayed poor timing and awareness. Too bad. Move on.
And? Manage your money better.
You really expected some sympathy on this one?
Market is adjusting. The real estate agents who pushed that rates will never rise (most of them) and The Bank of Canada who scoffed at anyone suggesting inflation as a conspiracy theory, in cahoots with Trudeau whom the GTA loves, are the culprits of misinformation. Votes matter.
oh boo hoo! 2 Telsas, a sportster & you bought high $$$~ suck it up buttercup. You never buy High or at the top. What goes up, must come down. Wonder how his stock portfolio is doing
All real estate has dropped? What’s the point?
In contract, it says mortgage pre-approval approval is needed. All buyers who gave mortgage pre-approvals after first deposit can legally terminate the contract and can demand deposit back from builder. CONTRACT IS VOIDABLE.
'I bought lots of Bitcoin right at the peak, and then the price tanked... I would like to pay the new lower price instead please. I actually didn't know that the price was going to go down, so it doesn't really seem fair that I could lose so much money. Thanks.'
Everyone in Fort Mcmurray has been in this position for 8 years ...
Speculators lost money. Too bad.
I do not feel bad for anyone who bought or sold during 2020-2022. You all fucked the market…. Now housing price drops and interest sky rockets. Thanks for screwing it up for everyone.
Thank Trudeau
Still can’t see that prices have decreased
Isn't that life? People lose money on investments/speculation sometimes? If they haven't been cheating on their taxes for years, they should feel comfortable putting the loss on there. It will reduce the tax they have to pay, and the loss will be smaller
When living beyond their means catches up to them…
The Toronto star is making this loser a victim? Hahahah. Honestly, where is my article talking about the stock I bought that dropped by half. 🤣
ManyBeenRinsed
Lmao. Greed has a cost. Sorry flippers
No sympathy. These are the people and the reason why you pay more for rent now. They made the real estate go up on speculation. They wanted you to be homeless so they could make more money.
Capitalists crying because...Capitalism. GFY. Eat the rich.
So, are we really supposed to feel sorry for people who spent millions on homes when people can’t afford to buy food or pay rent? Seriously, editors? Boo hoo.
We need more Feel good stories like this. 👍👍👍
The speculators deserve it. It’s like any other investments ding dong!
Boohoo
No one cares. Deal with it. Sue pmjt
Too bad. So sad. fafo
Maybe just they shouldn't have invested in a human need like absolute trash? Just spitballin here. Seems TorStar really doesn't have much to say abt the myriad problems going on if they're stooping *this* low
Should’ve bought a money market fund instead
What was the Caveat Emptor thing again?
Oh well, that's what happens when you buy in a bubble.
Don’t worry,the financial genius Justin has your back NOT
I thought everyone knew that prices were inflated but I guess some still signed the dotted line. This shouldn’t even be news.
This really screws all those buyers
I guess Tess Kalinowski has nothing better to write about. Or probably it pays to write such articles.
that s like saying i bought the S&P at 3k and now its at 2k. What do i do 😩.
Seen pictured with a car parked on the lawn at the side of his house. The greed of these people drive up prices while lowering the quality of life of everyone around them, turning neighbourhoods into slums.
Welcome to the real price of a home. And it’s going to be lower as the balloon pops. Save up and buy houses at a discount when it does.
Nobody feels sorry for people who buy multiple homes to rent rooms out for $2000 a month or sell the home for profit. People actually feel happy to see them like this
They made a bet, and lost. That’s the way Canada’s housing casino works, and why it’s economy is turning into dumpster fire. Zero sympathy. Besides, I’m sure this particular casino loser has $$$ somewhere else to cover his loss. Keep your hands off my taxes. cdnpoli
Wait, am I supposed to be sympathetic? Who in their right minds (a lawyer, nonetheless), buys TWO homes when the rest of the world knew interest rates were about to start rising? Obviously that would depress the market.
Real estate is a scam. Buy bitcoin
Deport!
I’ve driven by his house plenty of times in north brampton. this dude has 3 teslas and a bmw sitting in his driveway. no one feels sorry for him.
Oh no! Some very wealthy people who bought $5,000,000 worth of houses, aren't going to profit immediately from it! However will society survive?
Unless they are a first time buyer that bought the home to live in I don't feel in any way for them. It's not like our 'housing bubble' was a big mystery. Should have kept your affordable mortgage instead of using housing to try and increase your wealth.
Star was slient when same people were making money on pre-con homes. This is free market economy The era of easy money is now officially over. Free money party has ended.
o no
Yeah.. that’s real estate.
It’s called play stupid games, win stupid prizes…
Wahhhhh when did the Toronto star become a rag paper?
All investments involve risk. It’s a shame that some have lost in the short term. With a longer term time horizon, they will recover.
Who cares what they paid and who cares about these suffering. I don’t see any news in it. It’s a risk they took and now they are paying for it. Would this be a news if these houses were worth 4M? Focus on real issues as I don’t see this as an issue.
Hi instead of writing stories trying to get people to feel bad for those who bought... Multimillion dollar precons, Perhaps you should spend time writing stories about the people who will never be able to buy a home because the average house here is a million dollars thanks
Why is it every time I see an article like this, it’s always Mohammed , Ali or Mustafa crying about their “investments” ? Sorry but I don’t feel no pity for you. Welcome to Canada. Don’t like it ? Then go back home.
Sorry, but most of us expected this. I was blown away at the price people were paying for homes!
And everyone walked away having learned a life lesson. The end.
They would be bragging if house prices had escalated. I paid $0.60 /liter during COVID. Today it is $1.55. I will also whine about it. It is free market economy.
And Welcome to the real estate market…when you bought at the worst possible time
Indian and Pakistani immigrants seriously need to stop pretending to be rich
For the benefit of the country, we should use public money to bail out these investors.
It's called the market.
The saddest story I've ever read. I'm weeping for these poor people.
Greedy b*star*d
Hope he goes bankrupt, thinking he can get an adjustment or renage on deal.
Lol some ppl will never learn
Everyone knew this was going to happen when the market was insane. This is why people were encouraged not to buy. This is not a shock. People were warned.
So sad. Too bad.
Why is this news ? What do they want ?
Wait I thought it was in the constitution that house prices must always go up at 20% a year forever? Is this what they mean by “unwritten” constitution?
Poop happens
Another Desi in a $1k suit crying poor with 300k in cars in the driveway. Canada
Cry me a river. They didn't give af when prices were flying into the stratosphere.
What about when builders cancel your contract because prices went up so much only for them to resell it later for more... Can't have it both ways. Both sides need to honour the deal or don't.
What was he planning to do with all those single family homes?
Cry someplace else. If prices went higher the buyers would be happy.
GOOD
These same people have enjoyed for over a decade buying preconstruction houses/condos and seeing the value increase immensely before closing. Your are at the whims of the market. Suck it up.
Real estate, like any other commodity, is only worth what someone else is willing to pay for it. No one should be under the misconception that “you can’t lose buying a house”. Too much supply or no demand will always sink prices of any commodity.
Here we have a lawyer who has a Tesla in his driveway, his dot com address above the garage another sports car under a tarp at the side of the house has bought two houses for 2.5 million….2….yes 2 houses for his family & now he’s crying fowl This is not news & NO ONE CARES 🫤
I paid top dollar for the new iPhone in 2020. Now it's selling for less.
Uh maybe you shouldn’t have contributed to the ridiculous rise in home prices and waited to buy.
And...?
Absolutely not defending or supporting developers…BUT prices were extremely high in the last 3 years. I paid 300% more to install a fence. In addition, this is how the market works. We don’t have to like it…But this is normal
Real Estate Agencies are key part culpable for high cost of living
Crock all over....I guess actual cost calculations are not relevant....
Did these buyers not forsee that the market is going to tank?
Lol. Sorry suckers. You can’t time the market, but you can be cautious. If you really thought those inflated prices were legit, you deserve this.
I’ve driven by his house plenty of times. this dude has 3 teslas and a bmw sitting in his driveway. no one feels sorry for him.
would they be crying if it was the other way around?
Next time don't buy outside your means. When you make a huge purchase like this you need to account for drops and spikes. Utter foolishness. This guy bought 2 homes!! Sorry not sorry. If they spent that money on stocks and it crashed would the news report that too? 😒
too bad
How many of these losers voted Liberal? 🤣🤣🤣
This is the best news yet
Builders screw purchasers the other way around on new builds and charge buyers more or cancel deal. Its a Tarion clause that protects builders of rising costs. Why doesnt Tarion protect purchasers with a similar clause?
Sell the Tesla and buy a car that isn’t 100k. That will help pay for some of the difference.
I’m so confused. This is “affordability”. What did you think that meant?
Thanks Trudeau for this
Everybody was talking about it, yet...
That’s how it works, prices fluctuate
Sorta like buying stock at it's highest
Always going to be someone holding the bag. Win some, lose some
So?
That is how life works. “Buyer beware”.
All is good when real estate values rise and they profit, but when there is a slowdown/or downturn in value they go to Toronto Star to whine about it. This is how the real estate market works. Don't get in if you can't understand this.
They wouldn't be crying if it was the opposite situation. Artificially low interest rates and absurd prices you signed onto. This isn't the PMs fault. It's your poor decision to buy at such prices fault.
It’s all fun when the market is rising 30% per year.when it turns they all cry. Maybe let’s stop using homes as an investment vehicle and stuff like this wouldn’t happen.
Ha ha!
I bought Nortel at $120 per share and a little while later they were selling stocks for far far less. That’s not fair!
Good let these realtor/speculators go bankrupt. Most of these cry babies are speculators who caused high housing prices. Watching them go bankrupt and lose everything will help FTHB get into the market. Now we understand this we will all cheer as these realtors losing everything.
😆😆😆 sounds like mattamy homes oakville , couldnt sell em so the builder bought em out and 'artificaly' kept market prices up .... this was back in 2018
Is that not exactly how real estate is supposed to work? If you buy a house, and three years later it’s worth less, you don’t get a refund, or am I missing something…
😢😢😢😢 That’s Life suck it up