Continued drama in Toronto over "Trump Towers" - More Trump Tower buyers taking developers to court
http://metronews.ca/news/toronto/464...pers-to-court/
“The hotel is magnificent. The good reviews the hotel is getting are very well deserved,” says Herbert Crockett, 75, of Switzerland, who just spent nine days in the 23rd floor Trump unit he bought in 2005. He says he’s filing a lawsuit this week.
“The whole thing from that point of view is a tragedy. In 2005, this looked like a great investment. Now it looks dreadful.”
Crockett says he’s been shocked to find he can’t get a mortgage for more than 65 per cent, about $475,000, of the unit he paid [agreed to pay] $902,000 for seven years ago. The retired director of human resources for the World Health Organization says the unit was recently appraised for the TD Bank at just $730,000 and is costing about $7,000 a month to keep because rooms aren’t being rented out frequently enough, or at the $600 per night rate originally projected by Talon.
“Right now it’s like the fiscal cliff,” Crockett said in a telephone interview.
The Trump Organization, which simply manages the hotel for Talon, has said the Toronto project is getting rave reviews from guests and blamed the buyer revolt on “buyers’ remorse.”
--Note: The rooms were marketed to be rented out at $600 per night with 90% occupancy. There have been allegations that financial projections were provided with the marketing that has proven to be devastatingly untrue. The marketing was allowed via a securities law exemption conditional on no financial projections being provided.
--Note2: The securities commission, OSC, has concluded its investigation and is not taking any further action, letting this play out in the legal courts.
Outlook is dismal