In the article (read it HERE) he suggests that it’s a good idea for us (REALTORS®) to recommend to our clients that they should buy former grow-ops in order for them to get a “deal”. But what he doesn’t get into is all the difficulties that go along with purchasing a property like that …so here’s the short version of some of the challenges associated with buying a “stigmatized” property:
- Most, if not all financial institutions WILL NOT finance a former grow-op whether it has been remediated or not
- Most, if not all insurance companies WILL NOT insure a former grow-op whether it has been remediated or not
- Stigma follows the address & disclosure is forever in Ontario
So you’re dead in the water right there unless you’re paying for the property in cash. But say you have the cash to both purchase the property & remediate the issues that usually go along with a grow-op, like mold & electrical issues, just to name 2. It then depends on what you want to do with the property then. Are YOU going to live in it? Are you going to rent it out? Try & resell it for a profit?
I’m going to leave it here for you today & work on writing a full blog post about it to go out to you next week…otherwise this email is going to turn into a novel!
There are so many angles to consider…disclosure laws, the de-valuation of a property that’s been stigmatized, fraud, banking policies & more, PLUS I have a real-life example for you about a situation that my own clients got unknowingly caught up in last year that cost them big bucks when they sold!
Part 1 in this series can be found HERE
**This story was originally sent out on March 16th to my Daily Update peeps! If you would like to start getting my daily email too, just shoot me a message! M-W-F are real estate stories, either that I've written myself or that I consider share-worthy, & T-Th are new listings**