Stinky Deal

[UTCVenturesLtd]

I have a leased property with a 2yr building commitment to build a cabin at a lake in Sask. and then you can obtain a title to the property. Sask gov`t til now was involved with a native dispute and no one was able to obtain titles. The lot is assessed at a value of $6,700 on the lease agreement. Now that the dispute is over and titles are available, the Sask gov`t will let you have title for around $44,000!!! (The lease price is to jump from $400 to the $2500 range as well.) Quite a jump over the assessed value!!! So everyone is up in arms in the community located in the middle of nowhere. There are no amenities in the community except a golf course and you cannot even buy milk and bread! I see this as a Stinky Deal... they won`t sell you the lot in the first place since they want it developed and then when you develop, they raise the lot price since the community has now come together so they say the value has increased... The community known as Hitchcock Bay does not even show up when you do a search on the mls.ca website! Luckily i have waited til the tail end of the 2yr commitment so i would not lose too much by abandoning this deal, but still will lose at least $6,000.
Other option i figure would be to build the shell of the cabin to meet the 2yr commitment and then sell it as the cheapest project in the community so someone can finish it to their own liking and move on.

 

[Thomas Beyer]

That`s the risk you took two years ago .. leasing has less rights that OWNING .. hence the low low price for a lake front lot ..

Where is the problem ?

 

[invst4profit]

Is it even sellable at that price.

 

[UTCVenturesLtd]

QUOTE (thomasbeyer2000 @ Apr 3 2009, 11:21 AM) That`s the risk you took two years ago .. leasing has less rights that OWNING .. hence the low low price for a lake front lot ..

Where is the problem ?


I hate leases. Goes against my being an "owner" way of operating. The only way to build and get a title was to "lease" for the first two years. It is the not disclosing that the final price to obtain the titled deed which was not the price assessed on the lease, but many multiples of it where the problem came in!

The cabin two doors down sold for $320,000 with no title so the value is there to build a cabin shell and flip. I guess this is a good project for a Joint Venture investor to absorb the added cost of the title which would leave my cash free to seek a new project this time in Calgary.