🚨 Toronto's condo market just hit its 1996 moment
30% of Toronto preconstruction condo buyers are defaulting, and developers are suing them for millions.
Let's dig in 🧵
30% of Toronto preconstruction condo buyers are defaulting, and developers are suing them for millions.
Let's dig in 🧵
1️⃣ In 2021, Nizar Tajdin was told he could flip a preconstruction condo in Forest Hill for massive profit.
He put down $85,500 on an $855K unit he knew he couldn’t qualify a mortgage for. Why? The agent said he’d find another buyer. He never did.
He put down $85,500 on an $855K unit he knew he couldn’t qualify a mortgage for. Why? The agent said he’d find another buyer. He never did.
2️⃣ Now, Tajdin is being sued by CentreCourt for $860,000 + taxes.
Developers are holding deposits and suing for damages. And he's not alone — this is happening across the GTA.
Developers are holding deposits and suing for damages. And he's not alone — this is happening across the GTA.
3️⃣ Kristiyan Todorov, who bought 10 precons, says it's been a "living hell."
He lost his $200K deposit on one unit and is now being sued for over $1M in damages. The interest rate on the judgment? A staggering 24% annually.
He lost his $200K deposit on one unit and is now being sued for over $1M in damages. The interest rate on the judgment? A staggering 24% annually.
4️⃣ Developers have launched nearly 130 lawsuits — and it's only growing.
CentreCourt and Mod Developments alone are behind 73 of them. One project at 55 Mercer St. has 19 lawsuits. Another at 82 Dalhousie has 22.
CentreCourt and Mod Developments alone are behind 73 of them. One project at 55 Mercer St. has 19 lawsuits. Another at 82 Dalhousie has 22.
5️⃣ It gets worse: over 30% of preconstruction buyers in some buildings are defaulting.
Source: real estate lawyers working on mass settlements. One called it “the worst possible time to take possession.”
Source: real estate lawyers working on mass settlements. One called it “the worst possible time to take possession.”
6️⃣ Buyers bought in blind faith — trusting the hype, the market, and their agents.
Tajdin’s agent ghosted him. Todorov called it a “Hallmark movie fantasy.” And now, the lawsuits are dragging them through financial ruin.
Tajdin’s agent ghosted him. Todorov called it a “Hallmark movie fantasy.” And now, the lawsuits are dragging them through financial ruin.
7️⃣ Now the data:
New condo sales in the GTHA are at their lowest since 1996.
Completions are forecast to collapse 69% by 2028.
Why? Interest rates surged from 0.25% to 5%.
Buyers who once qualified at pandemic rates suddenly couldn't.
New condo sales in the GTHA are at their lowest since 1996.
Completions are forecast to collapse 69% by 2028.
Why? Interest rates surged from 0.25% to 5%.
Buyers who once qualified at pandemic rates suddenly couldn't.
8️⃣ Projects are being cancelled. Builders are panic-selling to institutional investors.
If one buyer defaults, it drags down the price for everyone in the building. Losses of up to 40% aren't rare.
If one buyer defaults, it drags down the price for everyone in the building. Losses of up to 40% aren't rare.
9️⃣ Toronto’s real estate was once considered a “sure bet.” Now, it’s a legal battleground.
People like Tajdin — whose studio just sold for under $420K (less than half what he paid) — are stuck picking up the pieces.
People like Tajdin — whose studio just sold for under $420K (less than half what he paid) — are stuck picking up the pieces.
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