the42 | 21 m | 6 fl | Proposed

[WaterlooRegioner]

Looks like construction should start soon. Those are amazing sales for the first day! Hopefully other developers are watching closely as this shows that the demand for condos and lofts is here. Although this is somewhat insignificant...I wonder how many units were sold to investors looking to flip?

[rapid_business]

/\ I'm sure a large number. I have a friend who worked for a large condo company out west. Even in smaller cities, with a good marketing campaign, he said they'd attract 30-40% relators and 'flippers'. Which there is nothing wrong with... some rent them out, others sell. The only concern is too many hitting the market as soon as construction finishes, thus diminishing the initial/immediate value of the other units as they vie for buyers. Nothing to worry about here though... that's just the way the market works.

Back to the two concerns brought up earlier, I wonder why they'd choose electric baseboard heaters if they are trying to be eco-chic. It's neither eco or chic? costs I assume. And that parking situation has trouble written all over it.

[WaterlooInvestor]

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[WaterlooInvestor]

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[WaterlooInvestor]

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[jcollins]

I have a feeling this is going to prompt more developers to try similar developments.

[metropolis]

The homepage officially states that over 80% has been sold! I wonder what units are left?

http://www.the42.ca/

[jcollins]

Does anyone know if there has been a company chosen yet to do construction?

If so, who, and if so, when does demo start?

[KW4Life]

I was told by phone Tuesday there were only five units left. Probably a sales job, but there weren't many.

Looks like we'll be paying higher prices for future developments.

[rapid_business]

/\ That's a given. Appreciation has been between 7-10% here for the past couple years, and it's expected to continue that way for the short term at least.

[KW4Life]

It's a given but if they sell out in a week they were under priced. That was the point I was trying to make.

I own home in Old Westmount that I bought in 2000. Between 2000 and 2006 my tax assessment more than doubled. Looks nice on paper. It'll help me borrow to buy a Barrellyards penthouse.

[rapid_business]

Underpriced.... perhaps. Or you could look at it as a niche that isn't being filled right now, so they could ask a higher price and get it. I seriously think there is a large number of developers that could make a pretty penny in KW if they would build 1 or 2 buildings, but they are so mono-centric that they can't see past the 905.

[metropolis]

Originally Posted by onishenko

I seriously think there is a large number of developers that could make a pretty penny in KW if they would build 1 or 2 buildings, but they are so mono-centric that they can't see past the 905.

Easier said than done for many developers. A builder new to a region must first understand the market and demographic. They need to do the research that helps them understand who their market is before a project is ever planned. Few buildings go up simply hoping to attract certain buyers, they go up having been designed so they cater to a demographic and market that exists in the area.

The logistics of moving employees, equipment and any other resources simply add to the capital expenditure without providing immediate return. Hence, marginalizes profits when moving to a new market are a considerable barrier to entry for most builders. If a company is kept busy and prosperous in a region it knows well there is little incentive to go through the hassle of investing into a new region.

[jcollins]

I think a great deal of success of this place can be attributed to the marketing campaign. They did a great job, there are signs up for this place everywhere, the message got out about this place.
Hopefully other projects take note and realize how important a good marketing campaign is.

[rapid_business]

Originally Posted by metropolis

Easier said than done for many developers. A builder new to a region must first understand the market and demographic. They need to do the research that helps them understand who their market is before a project is ever planned. Few buildings go up simply hoping to attract certain buyers, they go up having been designed so they cater to a demographic and market that exists in the area.

The logistics of moving employees, equipment and any other resources simply add to the capital expenditure without providing immediate return. Hence, marginalizes profits when moving to a new market are a considerable barrier to entry for most builders. If a company is kept busy and prosperous in a region it knows well there is little incentive to go through the hassle of investing into a new region.

I completely understand. Coming from Edmonton this makes perfect sense when the Concord's and the rest are happy in their current markets when they could clean up with their product in Edmonton. It's tough to make the leap and is only beneficial if they see a sufficient demand, and a cost-effective profit margin.

[WaterlooInvestor]

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[WaterlooInvestor]

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[jcollins]

Originally Posted by WaterlooInvestor

Nice, you'll have to invite people over to check out the view.

Just a correction, unfortunately I dont have the place in Old Westmount, it's KW4Life. Otherwise Id definitely have everyone over! hah

[WaterlooInvestor]

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[brian519]

I'm somewhat new to these forums and I've gotta say that I'm blown away by the quality information you guys have gathered

I've just bought myself a unit at the42, and I'm pretty excited!