TrueCondos.com – The Best Source for Toronto Condos

Cash Flow Heaven Forming in Queen West

First time investors usually come to me with great expectations. They would like to be able to buy a great condo downtown, close to the subway, and one that will carry itself (rent covering all expenses) with 20-25% down. If such a condo existed, I tell them, I would be first in line to buy one (or two!). The truth is, to get positive or break-even cash flow on a downtown condo today, you need to be prepared to put down at least 30% and for pre-construction, you are probably looking at 35-40%. This reality scares away many would-be buyers and they go back to waiting for the apocalypse to drop Toronto prices by 25%.

Enter: Epic Condos by Urbancorp and Plazacorp. Epic Condos is following fast on the heels of the very successful Edge Condos by the same development team. Urbancorp is engaging in business 101 – look for the gaps in the market and fill them. The massive hole in the Toronto condo market, where demand far outstrips supply is for smaller investor style units at reasonable prices downtown. Every time a new development launches, there are 4 buyers for every 1 suite priced under $300k. Urbancorp decided it would be a great idea to build an entire building where nearly every suite is priced under $300k, and the market has responded.

What makes these condos so hot? The numbers speak for themselves. A small 2 bedroom with parking can be bought starting at around $285K.

• With 25% down, mortgage payments would be about $957/month (3.5% @ 30 years),
• maintenance fees about $393/month (including parking and locker maintenance fees)
• Taxes about $233/month

Total = $1583/month

If you don’t think a 2 bed/2 bath condo downtown will rent for at least $1600/month, you don’t know the Toronto condo market. Try finding another pre-construction condo downtown that will carry itself with only 25% down and you’ll see how special this is.

So what’s the catch? How can these condos sell for $400 per square foot when everything else downtown is selling for $550-$700PSF? The short answer is this is a different product from what most builders are selling and building downtown today. The expectations for what you are getting at $400PSF should not be the same as what you are going to get down the street at $600PSF. All condominiums are not created equally, but the value proposition is undeniable at ~$400PSF and most importantly if you are an investor – POSITIVE CASH FLOWS!

Why is being able to carry a property with a positive cash flow so important if you are an investor? Simply put, it eliminates the need for a property to appreciate in order for it to make sense as an investment. If you are counting solely on appreciation to get money out of an investment, what do you do if you are forced to sell in a down market? If your property carries itself, you can ride out a year or two until the market turns around.

Further reading on the subject: What Ever Happened to Cash Flow?

Contact me for more information on Epic Condos or to discuss the issue of cash-flows more in depth.

Continue reading...

ART Condos Wants to Start Construction

From time to time I am able to offer my buyer clients special privileges because of either my own relationship with a particular developer or because of my brokerage’s affiliation with one. This week I have a special offer from ART Condos. Art is a 150 suite boutique loft building on Dovercourt, one block south of Queen Street. Suites range in size from @500sf to 1650sf 2 storey three bedroom with a patio. Prices are from $227,990 and parking is $30,000.

ART condos in Queen West is very close to hitting their sales targets for starting construction. They only need about 17 more units sold. In order to expedite the last few sales, they are offering an exclusive to my clients and other clients of Remax Condos Plus. On Wednesday June 23 they are having an exclusive sales event.

Special incentives for buyers at this event

• Zero assignment fee
• $2500 cashback on closing for studios, one bedroom and one bedrooms and den
• $5000 cashback for 2 bedrooms, 2 bedrooms and den and 2 storey 2 bedrooms
• Deposit Structure for select units has been reduced to only 10% in 90 days + 5% at occupancy!

If you are interested in purchasing a unit at ART condos, this is a great opportunity to get in before construction begins. Contact me for more information.

Continue reading...

ART Condos

Description Coming Soon.

Feb 9 update: Pricing and Floor Plans Now Available for the VIP Sales Event. Contact me for more information.

Continue reading...

Coming Soon: ART Condos

Feb 9 update: Pricing and Floor Plans Now Available for the VIP Sales Event. Contact me for more information.

The boutique condo concept seems to be growing in popularity of late with the recent and highly successful launches of The Address at High Park and 2 Gladstone. Buyers it seems, are quite enamored by the idea of living in a smaller low-rise building with minimal amenities in exchange for being in the heart of some of Toronto’s oldest and most established neighbourhoods. Enter: ART Condos by Triangle West Developments.

ART Condos will be located on Dovercourt, just south of Queen street West in the heart of the West Queen West neighbourhood. Dovercourt might be considered off the beaten path by anyone living near the subway lines downtown, but this area is well-known by some of Toronto’s hippest and trendiest people. The area was put on the map a few years back when The Drake opened it’s doors. A Starbucks followed, and Queen Street West has never been the same. Although it is still a gritty haven for artists and creative-types, West Queen West is also now a hotbed of hip and brimming with new condo projects including 2 Gladstone, Westside Gallery Lofts, and Bohemian Embassy.

Very much like The Address at High Park and 2 Gladstone, I expect all studios, 1 bedrooms, and 1+dens to sell out very quickly in this project.  Prices are going to start in the low $200s. For more information about ART Condos including details on any upcoming VIP sales event opportunities, please contact me and bookmark this page for updates.

Continue reading...