Another BC condo runs into financial trouble

United Properties Anvil in trouble

Another lower mainland condo project in trouble, this one in New West. Story at the CBC:

United Properties, the developer behind The Anvil in New Westminster, has run out money, and that means pre-sale buyers are being asked to pay an additional $20,00 to $40,00 if they want to keep their condos.

Pre-sale buyers have received letters from the developer saying they have 14 days to decide whether they want to pull out and get their deposit back or pay the additional costs. The project needs an additional $4 million to meet its financial obligations.

“Development is a tough game and United Properties has been at it for some time, so it is quite unique to have such a developer run into this kind of difficulty,” said real estate lawyer Ron Usher.

Apparently the Anvil is currently 18 months behind schedule. Insert appropriate Wile E. Coyote comment here.

Thanks to Macchiato and Exx for the story link.

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63 Responses to “United Properties Anvil in trouble”

Pages: [1] 2 » Show all comments newest first

1
macchiato Says:
May 21st, 2008 at 11:13 pm
I am wondering if the +$20-$40K would represent market value for the units? Further, if contracts are then just terminated and deposits returned … I am guessing the strategy is that the developer would then put the units back on the market at an increased price? With things slowing down, this strategy may prove problematic.
2
Patiently Waiting Says:
May 22nd, 2008 at 4:09 am
Interesting comments below the CBC story. Wasn’t sure if it would be appropriate to cut and paste to here, but check out what Renews Boy and Snowrunner have to say about construction practices.
3
Patiently Waiting Says:
May 22nd, 2008 at 4:38 am
Proof that we are in a recession:

http://tinyurl.com/3pa99w
4
--A- Says:
May 22nd, 2008 at 5:44 am
.
.
.
.

>>>>>>>>>>>>>>>>SEND IN THE CLOWNS>>>>>>>>>>>>>>>>>>

The high paid spinners… Bill Good, Muir, Patrick, et all should have no problem turning this into a selling opportunity.

“Get in now, before construction costs price you out of the best place on earth housing market” will be the message.

The secondary message they will pump and push will be that prices aren’t too high; it’s taxes and development fees.
5
patriotz Says:
May 22nd, 2008 at 6:09 am
Because people don’t understand the truth:

RE prices are determined only by what the buyer is willing to pay, not by the cost to the seller.
6
Warren Says:
May 22nd, 2008 at 7:55 am
I guess it all depends what exactly the price is. If we’re talking 2003 prices for these places, plus $20k (lets call that 5-10%), it might be worth it. That could be a 30% discount on todays prices.
7
gah Says:
May 22nd, 2008 at 8:04 am
From the Globe: Q1 US home prices fall by the largest amount in 17 years;

‘“The large overhang of real estate inventory awaiting sale continues to force price declines in many areas, but particularly in places that had seen very sharp appreciation,” Patrick Lawler, the agency’s chief economist, said in a prepared statement.’

Good thing we don’t see either of (a) increasing inventory or (b) a period of rapid price appreciation here in Vancouver
8
Bubble Lad Says:
May 22nd, 2008 at 8:17 am
What’s going to happen to all these partially finished condos since the developers seem to be able to walk away at a moments notice? (like they did the leaky condos). Are they going to become giant squats full of homeless and gigantic drug bazaars? God help you if there’s one of these partially finished condos around the corner from your “million dollar” home. How could they NOT become magnets for illegal activity? Seems one of those could single-handedly ruin a neighborhood…?
9
bdk Says:
May 22nd, 2008 at 8:24 am
Did i read it wrong or does Garth’s site say “Pumper Bill” is a renter himself?
How backwards is that?

Hey trolls, what do you think about the biggest RE pumper being a renter?
10
blueskies Says:
May 22nd, 2008 at 8:40 am
Hey trolls, what do you think about the biggest RE pumper being a renter?

what people do behind closed doors and what persona they project outside may vary widely.
what do i have to do to pay the bills?
11
bdk Says:
May 22nd, 2008 at 8:47 am
It’s like that gold troll Michael pumping gold on here and then shorting it, except people actually listen to Bill Good.
12
Rob A. Says:
May 22nd, 2008 at 8:48 am
These condos going into recievership is proof that the economy and relestate market in Vancouver is red hot and there are no signs it is slowing down!

It’s so hot that even if you buy before you get priced out, you might end up getting priced out anyways!
13
s.p. Says:
May 22nd, 2008 at 8:57 am
what a great way to squeeze a few more dollars.
14
Mold City Says:
May 22nd, 2008 at 9:10 am
Wow, these developer financial troubles are really piling up. They all seem to use the same excuse: escalating labor and material cost - did they not plan on those costs being variable?

Both labor and materials cost fluctuate, when there’s less construction happening the cost of both can go down.

Why does it seem to be so much more expensive to build in the lower mainland compared with the rest of Canada?
15
Krrish2 Says:
May 22nd, 2008 at 9:24 am
Rob A,
Well said on the otherside i have heard that Gerth Turner is in *the place to be*(Vancouver) to buy Pent House.
“what people do behind closed doors.?”
what do i have to do to pay the bills?

Write a book, name it “DOG EAT BEAR”even you can travel with in provinces and take a world tour all bears will pay for your expenses.

you will be famous without any correction or crash then buy a pent house because money you have earned is yours,you must spend it some where so what about buying some more real estate?Investment properties in the place to be?Also when your bag is full of money you must visit in Vancouver ah,ok,where is my location?countinue……….
16
blueskies Says:
May 22nd, 2008 at 9:47 am
It’s so hot that even if you buy before you get priced out, you might end up getting priced out anyways!

circular logic!

you have your head so far up your a$$ that if you had a thought your head would explode and…well we won’t go there…
17
Tony Danza Says:
May 22nd, 2008 at 10:03 am
It’s so hot that even if you buy before you get priced out, you might end up getting priced out anyways!

Then why are you selling your condo? If you believe prices will keep going up why sell? Oh wait, I know, because you’re full of sh&t!
18
Rob A. Says:
May 22nd, 2008 at 10:09 am
“Then why are you selling your condo? If you believe prices will keep going up why sell?”

Because, as I said before I am moving out of province and I don’t want to rent out a property when I am on the other side of the country. Try to keep up
19
Tony Danza Says:
May 22nd, 2008 at 10:14 am
Because, as I said before I am moving out of province and I don’t want to rent out a property when I am on the other side of the country.

You’ve never heard of a property manager? You should look into it because when your place doesn’t sell you’ll need one.
20
bdk Says:
May 22nd, 2008 at 10:26 am
Actually Tony, you have to actually own property in order to rent it out.

He doesn’t know where he lives and claims to have signed a job offer over a long weekend.
What was the deadline of the job offer Rob A? since it came in after business hours on Friday and the middle of the night in Ontario? Presumably while you were snuggling with your “girlfriend”

Is Starbucks opening a new location in Barrie?
21
Rob A. Says:
May 22nd, 2008 at 10:31 am
Wow, I’m really flatered by the amount of interest you guys are taking in me!

:blush:

But it is just part of the territory when you are living the Downtown life style
22
scullboy Says:
May 22nd, 2008 at 11:11 am
Just a thought…

Maybe in reality Rob A.’s “Snuggling with his girlfriend” means “Paid Krrish’s mom for a rusty trombone”.

Go ahead and mod this down to the bottom of the pile, it made me laugh to think of it….
23
Drachen Says:
May 22nd, 2008 at 12:45 pm
Rob A

“Wow, I’m really flatered by the amount of interest you guys are taking in me!”

Yes, you’re the Paris Hilton of Vancouver Real Estate.
24
exx Says:
May 22nd, 2008 at 1:00 pm
Canadian housing boom over, says RBC

…but that probably doesn’t apply to Vancouver.
25
exx Says:
May 22nd, 2008 at 2:46 pm
Oops, the above article does apply to Vancouver as shown in the RBC report the article is referring to.

For April, YOY sales down -5.0%, listings up 25.9%.
26
exx Says:
May 22nd, 2008 at 2:49 pm
Link above didn’t work. Direct url: http://www.rbc.com/economics/market/pdf/citytrend.pdf
27
-A- Says:
May 22nd, 2008 at 2:54 pm
Satv, Krish Krash, Rob A:

This is what your leader Rob Chipman says:

Rob Chipman { 05.22.08 at 2:08 pm }

“I understand that you think the correction will be greater than 20%. I’ve said I expect something from 20% - 40%. We don’t differ that much on that score.”

http://robchipman.net/blog/?p=81#comments

I think he is off by a wide margin; the price drop will be much greater, my reasons are solid, and that is why he is too chicken to publish my posts.

What do you say to that?
28
Lager not Logger Says:
May 22nd, 2008 at 3:21 pm
A realtor predicting house prices dropping between 20 to 40% isn’t enough for you? Geez, you’re hard to please.
29
Lager not Logger Says:
May 22nd, 2008 at 3:24 pm
Wiley Coyote hauling up the anvil is the perfect image for this story
30
bdk Says:
May 22nd, 2008 at 3:53 pm
“I don’t want anything to do with that idiot Krissh/Satv/Thumsup or whatever he’s calling himself this time” Rob Chipman
31
Thums up2 Says:
May 22nd, 2008 at 4:33 pm
I don’t give a heck to Rob Chipman -if you guys got some references about RTRS from Crabman then you know the answer.tweenty percent correction is to tell the sellers to reduce their listing prices to make realtors job easy.

If seller got to lose $100k Realtor won’t even lose 1000 on his commission,The best lesson to learn- if market is due for crash or correction why don’t ROB CHIPMAN put his on properties on sale?

Market is catching the sales heat- anybody wanted to swim, just get in today than tomorrow.Do not entertain your self with just for lough,if you disrespect the statue of our economy,mortgage and lower interest rates they will tick opposite from your desire,So get in or good bye.
32
-A- Says:
May 22nd, 2008 at 5:39 pm
Thums:

“if market is due for crash or correction why don’t ROB CHIPMAN put his on properties on sale?

I would have to agree, on the surface, it seems a contradiction, but it isn’t all that unusual for him to contradict himself, and he definitely has some large gaps in knowledge, particularly around Macro Economic Theories.

(it’s actually funny when he pretends to understand monetary theory)

As well, some of his ideas around finance issues are somewhat bizarre, particularly his theory of how negative cash flow and negative equity is a good investment strategy.
33
Thums up2 Says:
May 22nd, 2008 at 6:02 pm
A,
We don’t have hurricanes here,We don’t have threat of terrorism here,And we have low interest rates also low mortgage rates,we have increased level of immigration and migration top on the above we not going to have enough housing stats after 2008 where do you see your negative equity dreams?
Stop complaining get set ready to get in!when?TODAY.
34
patriotz Says:
May 22nd, 2008 at 6:43 pm
Rob Chipman… I expect something from 20% - 40%.

I think he is off by a wide margin; the price drop will be much greater

I don’t expect to see much more than 40% nominal off the SFH benchmark, but it will take over a 50% real hit. Those are about the same parameters as the 80’s bust.

50%+ nominal off some condo developments, yes.
35
scullboy Says:
May 22nd, 2008 at 6:48 pm
I finally figured you out, Thumbs.

As far as you’re concerned as long as people keep buying in at ever increasing prices, everyone benefits. To you it makes sense to buy in right now because tomorrow and every day after for decades prices will go up.

If you can’t afford to buy in downtown buy out in the suburbs. If you can’t afford the size you want, just buy something smaller.

I’m right, aren’t I?
36
-A- Says:
May 22nd, 2008 at 7:32 pm
Patrioz: Yes, something along your scenario is more likely to play out.

I didn’t want to confuse Rob, Sat Kingii, Newsflash, Aaron,
Realitycheck et al, with nominal vs, real, etc.
37
blueskies Says:
May 22nd, 2008 at 7:38 pm
scullboy: good call on numbnutz
added inventory will increase demand
Alice in Wonderland Economics
38
stagnate Says:
May 22nd, 2008 at 7:47 pm
real interest rate spread at 1981 boom top=17%
real interest rate spread now=2%

rental vacancy rate at 1981 boom top=6%
rental vacancy rate now=2%

fellas, any significant correction in vancouver r.e. in the past has been fueled by an real interest rate spread significantly above historical norms. the credit crisis would have to take a huge turn for the worse to get the housing deflation you hope for. just hoping for something will not make it happen. look for opportunities in the weakness, a shrewd investor can make money in any market. don’t let past mistakes hinder your future. use cogent thought and don’t be an assclown. ha ha
39
Thums up2 Says:
May 22nd, 2008 at 7:48 pm
Sonika,
Jolly good!yep!yep!!that’s!that’s!! what you need!need!!right there you have found a great friend with massive dock i mean coca cola up yup,thumps up.
Sonika where you have reached today with your best ever conclusion my girl,I can finally say it with proud that
………………. .. … /? /)
……………….. ..,../? ..//
……………….. …./… ./ /
……………….. ..,/? ..//
……………….. ./… ./ /
…………./??/’ …’/??`?
………./’/…/… ./… …./??\
……..(’(…?(… ……. ,~/’…’)
………\………. ….. ..\/…./
……….”…\…. ….. . _.?
…………\……. ….. ..(
…………..\….. ….. …

Vancouver,B.C.
“THE BEST PLACE ON EARTH”-cho chweet
40
blueskies Says:
May 22nd, 2008 at 7:51 pm
ascii images…. sigh
nostalgia ain’t what it used to be
41
Tony Danza Says:
May 22nd, 2008 at 8:18 pm
Keep dreaming stagnate, the worm has turned and if you haven’t sold out already you’re obviously too late like your buddy SATV. You Realtards sure are entertaining though! I can hardly wait to read your sob stories in the local rags when you wail for a bailout:)
42
-A- Says:
May 22nd, 2008 at 8:27 pm
………………. .. … /? /)
……………….. ..,../? ..//
……………….. …./… ./ /
……………….. ..,/? ..//
……………….. ./… ./ /
…………./??/’ …’/??`?
………./’/…/… ./… …./??\
……..(’(…?(… ……. ,~/’…’)
………\………. ….. ..\/…./
……….”…\…. ….. . _.?
…………\……. ….. ..(
…………..\….. ….. …

So I assume, you don’t agree with Rob Chipman, you don’t think there will be a drop in price of 20% t 40%
43
Not stagnant Says:
May 22nd, 2008 at 8:27 pm
stagnate wrote “look for opportunities in the weakness, a shrewd investor can make money in any market. don’t let past mistakes hinder your future. use cogent thought and don’t be an assclown. ha ha.”

You must be very young and accordingly arrogant. You assume that the goal of everyone in the friggin’ world is to make money. It’s not. Money can’t buy you the most important things in the world; it only allows you to rent them.

They say “money can’t buy you love” but you know you can rent it. So I guess you’re a renter with regard to love; watch out for diseases, some of those girls are dangerous.

Stagnate, you’re a friggin’ renter! Oh that’s too funny! All the money in the world and he’s got no-one to love; he’s a renter!
44
Not stagnant Says:
May 22nd, 2008 at 8:29 pm
Sorry stagnate, Maybe you’re not so young after all. Just a lonely old man.
45
Anonymous Says:
May 22nd, 2008 at 8:31 pm
a,i think he forgot to print copy right protection warning.
46
blueskies Says:
May 22nd, 2008 at 8:36 pm
stagnant is one of those jealous bitter home owners…
47
stagnate Says:
May 22nd, 2008 at 8:38 pm
not stagnant: yes i can make money. yes i can get under your skin.

tony danza: 80’s are over tough guy, thanks for coming out.
48
Michael Randallbard Says:
May 22nd, 2008 at 8:40 pm
“But it is just part of the territory when you are living the Downtown life style”

http://www.youtube.com/watch?v=8GVE7lRZuFM
49
Michael Randallbard Says:
May 22nd, 2008 at 8:43 pm
http://www.youtube.com/watch?v=dLyUGkyj … re=related
50
Michael Randallbard Says:
May 22nd, 2008 at 8:44 pm
http://www.youtube.com/watch?v=VFCBJcp7 … re=related

Pages: [1] 2 » Show all comments newest first

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United Properties Anvil in trouble

63 Responses to “United Properties Anvil in trouble”

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