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Trump tower falters

By Judy Martel · Bankrate.com
Wednesday, April 25, 2012
Posted: 5 pm ET

Real estate kingpin Donald Trump is feeling the pain of the downturn in the global housing market. Buyers in one of his latest luxury condo/hotel buildings in Toronto began having second thoughts even before the ribbon-cutting ceremony.

Condos in the 65-story Trump International Hotel and Tower start at $2.3 million and hotel condos start at $967,000. Owners of hotel condos pool their rental income and share it. But according to the Wall Street Journal, at least eight of the investors in the hotel condos have contacted lawyers to try to back out of their contracts and recoup the $212,700 deposit.

Developer Talon International Development Inc. reports that 60 percent of the condos and 85 percent of the hotel condos have sold, which is fewer than Trump's other, similar towers. A spokesman for Talon told the Wall Street Journal that the weak global economy is to blame.

Toronto's condo market has been enjoying a bubble, but many Canadian real estate analysts are predicting a downturn, because the market has been saturated. Here in the U.S., luxury real-estate prices have been falling even as cheaper properties are stabilizing, according to the S&P/ Case Shiller report last month. Perhaps Canada can look to the U.S. for a cautionary tale about overbuilding during a housing bubble.

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135 Comments
Lynn
June 20, 2012 at 4:45 pm

Trump and Romney both inherited millions. Pleez - good businessmen - they've made money bankrupting and unemploying thousands of people.

Paul
June 20, 2012 at 3:53 pm

Greed or not... Trump is a million times better for this country than obama ever has or will be.

Paul
June 20, 2012 at 3:51 pm

Cyberian,,... you are the one showing how infantile you are, with your rant. Why dont you go back to your crib and keep crying about things that your party (demos) mostly caused.

1. 2008 economic crash was mostly per mortgage failures which was mostly per CRA which was mostly per democrats (note that only gop tried to minimize CRA or put limits on the unlimited mortgages that feds were forcing on banks.

2.

John
June 20, 2012 at 2:09 pm

Donald Trump is a true American success story. His investments have created 1000's of jobs which for one private person's efforts versus those of the "community organizer" elected to so the same over the past 3-1/2 years is a hell of better track record on Trump's part. If the property in this article fails to be a viable investment the fault is not Trump's but because the "community organizer" has failed to implement any viable plan to restore the US economy which has now spilled over to effect Canada's and a number of other contries' economies as well.

cyberianfox@comcast.net
June 20, 2012 at 11:53 am

Trump is nothing but a big mouth idiot who like Romney loves to destroy businesses for his own use. And they both have use the Federal Bankruptcy laws to fuel their overseas account. Any five year old can see that.

All this debt is from the previous administration. Debt will always rise due to the interest rate...especially since we can only pay the minimum...DUH!!!!!!

REPUBLICANS ARE STOPPING THIS COUNTRY FROM WORKING!

STOP BEING A BUNCH OF INFANTILE RACISTS...IT'S SHOWING!

John
June 20, 2012 at 11:04 am

Trump has survived this before; he will weather this. Annie, Mr. Obama couldn't even mobilize his 'Occupy' squatters. Every one of his 'fixes' have been catastrophic failures. Stimulus spending? Not so stimulating. Cash for Clunkers? Oh, my goodness, no. Real unemployment hovering around 15%, with almost 54% of college graduates under 25 un- or underemployed.

If Trump goes under, the ripple is pretty small. Mr. Obama, on the other hand, is threatening to swamp a nation with his flawed and amateurish 'interventions.'

Hansi
June 20, 2012 at 1:36 am

I smell an impending bankruptcy if things don't go Combover's way!

Ben
June 20, 2012 at 12:17 am

The real power behind Rethuglicans is who forks out the huge money due to Citizens United. Real running mate-er, President candidate is THe Donald, Sheldon Adelson is Sec. of State. A sick joke

AnnieRommie
June 19, 2012 at 8:29 pm

Romney and Trump are a couple of dufas'.

Pres. Obama is the right man for the next four years.

~Tell it to the Republicans...we need to move forward~

Iris Ann Eddy
June 19, 2012 at 7:19 pm

Oh My!! If you don't like Trump or Romney; then I would guess that you like people with very few accomplishments in life like your idol B Obama. He accomplished rabble rousers behavior, the Chicago style in the land of Lincoln; who if alive today would slap em' down. Annie