A Tale of Two Trump Towers

Even though Vancouver is the bestestest city that ever there was, we’re yet to get our Trump Tower.

But if you want to get excited that we will be getting you Trump Tower you can rely on the Vancouver Sun to reprint the best press releases as news articles.

If you could buy a unit in the luxurious $360-million Trump International Hotel & Tower Vancouver, to be finished by fall 2016, you might never want to leave.

But if you have to, you will probably be able to go in style. Access to private jets, helicopters and Rolls-Royce limos for Trump buyers are probably going to figure as “residential amenities”, or perks.

..probably.

Meanwhile there’s another Canadian City that already has it’s Trump Tower and yeah, that would be Toronto.

But the one in Toronto apparently doesn’t have that problem where people ‘might never want to leave’.

Apparently the problem there is sort of the opposite.

A unit in Toronto’s troubled Trump Hotel up for auction Sunday only received one bid — and below the minimum offer.

Kashif Khan, managing director of Toronto-based Ritchies Auctioneers, said the $550,000 bid will be taken to the owner of the unit.

“At that price, we can’t close the deal . . . but we will be presenting the offer to the seller,” he said. “We don’t know (if he will accept) — crazy things happen.”

The owner is a real estate broker who after seeing lots of similar units stagnate on MLS for months on end decided an auction would be a good move to unload the condo.

 

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Aggregator
Guest
Aggregator

For you hardcore analysts, I recommend reading these working papers on Google to understand the new dynamics and mechanics of Canada’s housing market. They get mathy but there’s plenty of information and data to extrapolate.

Do the Forward Sales of Real Estate Stabilize Spot Prices?
Transaction volume and price dispersion in the presale and spot real estate markets
Pricing of Presale Properties with Asymmetric Information

It’s a different ball game now that relies more on the law then supply and demand.

Chine
Guest
Chine

The source of most wealth is rising RE values coupled with a rising population.

In some overseas countries, those that have land in cities have become uber wealthy. Those that don’t are laborers who will never earn enough to buy.

Within 10 years, an average detached home in Shanghai, Delhi, or Mumbai will go for $10 Million.

These are the future immigrants. Locals will not matter unless you already own land here. Sad but true.

Chine
Guest
Chine

Of course the land owners in these foreign countries have to sell before they realize their gains. —> they do when they immigrate.

Chine
Guest
Chine

There goes the Admin downvoting posts multiple times…c’mon! 13 and 11 downvotes in 10 minutes??

space889
Member
space889

@Chine – and who will buy those $10M houses in Shanghai, Mumbai, etc?? The locals there who make at best $100 USD/day??

jesse
Member

I’m shocked and dismayed another condo hotel is finding its borrowers in distress. Nobody could have accurately predicted this.

Joe Mainlander
Guest
Joe Mainlander

Article on Joo Kim Tiah of Holborn.

ww.biv.com/article/20130820/BIV0201/308209951/-1/BIV/joo-kim-tiah-youth-movement

James Cheng (Vancouver architect) quote: “Tiah’s decision to approach Trump surprised Cheng because Cheng doubts the Trump brand will impress potential buyers in Vancouver. Cheng believes Vancouverites are not as brand-conscious as those on North America’s east coast and perhaps much of the world.”

WS
Guest
WS

Are the only suckers left in this world in Vancouver?
Let’s see, Trump Towers in NYC, CHI, LV and TO. Nothing in LA, SF, Houston, ATL etc., etc.
Oh hay! Vancouver is so world class it must be next in the Trump empire.

This pondscum has declared bankruptcy at least 4 times and lost allot of people a good deal of money. Americans all know this guy is a joke. But I guess it is different here.

Hans Moleman
Guest
Hans Moleman

the models used in the marketing for TT are all caucasian, and there are no asian/chinese letters or themes.

can we conclude that this is being marketed to whites?

mac
Member
mac

The more open-minded readers here might see something worthwhile in these stock-related posts if they replace the idea of stocks with real estate:

http://www.thereformedbroker.com/2013/09/17/i-went-to-cash-because-please-check-one/

http://www.thereformedbroker.com/2010/11/04/dont-get-stockblocked/

And for the truly orthodox on this blog, there’s this little snippet :

6. Smart people can be stupid. The well-educated can be wrong, the knowledgeable can persist in foolishness for long stretches of time for a myriad of reasons. An 83% rise in the S&P 500 amidst bad and worsening news on the economic front is not intellectually satisfying and so many intelligent people fought it the entire way up and fight it still. Again, smart people being stupid, it’s nothing new.

mac
Member
mac

Now vote me down.

Softy
Guest
Softy

Yeah, but judging by Vancouver’s real estae prices, Vancouverites are dumb enough to buy the Trump Tower. That’s why we have a trup tower before other larger American cities.

There may be a sucker born every minute, but in Vancouver there is a sucker born every 30 seconds.

Joe Mainlander
Guest
Joe Mainlander

Trump doesn’t build or develop these buildings. He sells his name. Holborn is building the tower, and bought the name and Trump get cash or some small % ownership, like most hotel brands do now.

As Cheng says, Vancouverites probably aren’t as brand conscious. But, I doubt Holborn is targeting the local market.

Hoborn represents newcomers to the Van development scene; the Malaysian/Singaporean Chinese. Perhaps they will look to Singapore/Malaysia for their source of buyers.

Aggregator
Guest
Aggregator

Check out Toronto 416 new condo sales http://i.cubeupload.com/btAWX1.png

So do sales need to reach zero before it’s officially called a crash? Or maybe two sales so at least they can calculate an average price?

Makaya
Member
Makaya
The long awaited collapse is now fully under way… From the Globe and Mail Toronto new condo sales post worst August showing in a decade The number of new condos that sold in the Greater Toronto Area during the month of August dropped to 633, the lowest level for that month in a decade, according to RealNet Canada Inc. The figure is 18-per-cent lower than the 772 sales that occurred in August of 2012. There were 1,923 sales in August of 2011. (…) The total number of new homes, both low-rise and high-rise, that have sold in the Toronto area so far this year stands at 16,775, the lowest year-to-date total of the last 10 years, RealNet said Monday. There were 777 sales of new low-rise houses during August. While that is up 32 per cent from 588 one year… Read more »
betamax
Guest
betamax
snake
Guest
snake
snake
Guest
snake
yvr2zrh
Member

Regarding the Trump Tower and James Cheng’s comment on Vancouver’s lack of brand-conciousness. Remember that restaurant that moved into Lumiere’s old space? You all know how well that ended!!

In Vancouver – people must understand- the deep distrust of the “East”. Something that sounds like it is associated with Toronto, or to a lesser extent, New York, is actually disliked. This comes partly from Vancouver’s sense of superiority.

It’s tough to see how the Trump tower will do well as the brand will really get no value from the locals. You would do much better coming up with some fancy sounding name than the Trump name.

yvr2zrh
Member
Had a great catch up with one of my key industry contacts. This was a mortgage broker (who I respect because they are very good at what they do and really understand the market). Just going down the list with him of all the increases in restrictions that have been implemented over the past years really makes me wonder what would have happened without these changes. We would have had a serious national real estate bubble which when popped would have led to serious financial disaster. The restrictions on self-employed are real. Those with foreign (and especially undeclared) income – – well – no proof of income – then no mortgage. Investors – very big restrictions now – – no more no-equity, no-money-down, amateur landlords. Here’s a new one from last week- – If you want to have Daddy gift… Read more »
Softy
Guest
Softy

“Here’s a new one from last week- – If you want to have Daddy gift you money . . Well – the latest is that for this to qualify as an allowable gift for purpose of down payment, your daddy must have had the cash in his own account for 3 months and provide copies of bank statements. . . . . or else the bank will not approve. This one is fresh off the rule list (some lenders likely won’t follow for now – but just wait). . . . ”

When I obtained rate holds from three different banks back in June, only one of them (RBC)required a 3 month paper trail of the down payment funds. Scotia and VanCity did not require it.

LOL
Guest
LOL

>5 years – you will be much further ahead of those who owned and suffered the poor cash flow and high cost. It is difficult to measure why renting is better – even if prices stay flat for 10 years

you guys have been waiting 8 years, and now you’ll have to wait 5-10 years more HAHAHAHAHAHAHA.

13-18 years of renting.

all of you are truly PRICED OUT FOREVER.

YVR
Guest
YVR
mac: Smart people can be stupid. The well-educated can be wrong, the knowledgeable can persist in foolishness for long stretches of time for a myriad of reasons. An 83% rise in the S&P 500 amidst bad and worsening news on the economic front is not intellectually satisfying and so many intelligent people fought it the entire way up and fight it still. Again, smart people being stupid, it’s nothing new. Yes Warren Buffet was one of those stupid smart people in 1999 when he refused to invest in tech stocks when everyone else was getting rich and Peter Schiff was one in 2005 when he rented his house instead of owning in the US when everyone else was building equity not throwing away money in rent. Fundamentals always win at some point and smart people who understand *risk* are no… Read more »
YVR
Guest
YVR

Softy:

When I obtained rate holds from three different banks back in June, only one of them (RBC)required a 3 month paper trail of the down payment funds. Scotia and VanCity did not require it.

Hey Softy are you still sitting on the sidelines with a rate hold or did you just buy at close to peak?

b5baxter
Member

Stopped by the showroom for fortyninewest today. This is a development that is 4 blocks form where I currently rent a two bedroom.

The price to rent ratio ranged from 297 – 500.

And all of these units had less square footage than what I have now.

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