Exclusive Video: University Suites Investment Analysis
Watch this exclusive True Condos video analyzing the full investment opportunity in Kingston at University Suites.
University Suites Investment Analysis Video Transcript
Hello and welcome to another true condos exclusive video. My name is Andrew la Fleur and I’m a real estate agent with Remax condos plus. If you’re watching this video and you would like to learn more about University Suites in Kingston, just go to truecondos.com and register for the full investor’s package. so let’s get right to it. First, some background on the project.
Kingston
The project is in Kingston which has a picturesque waterfront city and has a population of 123,000. It was Canada’s first capital city so there’s a lot of history in this town. Because of it’s strategic location near Toronto, Ottawa and Montreal, 30% of Canada’s entire population live within a 3-hour drive of Kingston. and it was recently named the 4th best city in Canada to live in….and of course, Kingston is perhaps best known as University town and home to Queen’s University.
Queen’s University
A little about Queen’s. It is one of Canada’s oldest universities, founded in 1841 making it over 170 years old. It’s consided the Ivy League school of Canada – what I mean by that is that it has the highest number of students who graduate, the highest number of award winning faculty, the highest number of world-class research facilities, the highest number of A+ students in the nation and so on. For the elite who attend Canada’s best private schools, Queen’s is usually their first choice university to attend. Queen’s student population is sitting at 24,000 and most importantly, 95% of those students are NOT from kingston. So that means that every year you have around 22,000 of Canada’s brightest and most economically advantaged students looking for a place to live…BUT here’s the problem.
Queen’s Housing
Queen’s housing stock is notoriously poor. The area closest to campus where students most want to live is nick named “ The student ghetto”. 100+ year old buildings with poor insulation, leaky windows, old plumbing, electrical, and heating systems where 6-8 students rent rooms is the norm. AS one Queen’s student put it on their blog, “Queen’s University is surrounded by the “student ghetto” which is where most students live after first year. …overflowing with Queen’s students inhaling mold, crushing cockroaches and perpetually unclogging things. Not so glamorous.” And so, there’s a HUGE pent up demand for high quality student housing close to campus.
University Suites
Enter: University Suites. University Suites is an amazing investment opportunity in Kingston, just steps to Queen’s University campus. The rest of this video will give you a brief overview of the project but Once again, for the full investors package, make sure you go to truecondos.com to download your free copy.
University Suites: Location
Ok let’s talk about location first. To get your bearings straight, this is a map of Kingston. Obviously the blue is lake Ontario. Here we have the Queen’s University Campus in the yellow. The historic area where you will find many old buildings is here in the pink. Downtown Kingston with it’s great shopping, entertainment and restaurants is here in the purple. And finally the student residential area which includes the so called “student ghetto” is right here in the green. This is the sweet spot where all Queen’s students want to live. Competition for housing in this area is fierce with most properties renting out 9-11 months BEFORE the start of every school year on Sept 1st.
And now here is the location of University Suites – right at the intersection of Princess and University streets. The location is perfect as you are in the sweet spot. a 5 minute walk to campus straight south on University Ave, and you are also a 5-minute walk to the downtown area on Princess street.
Also of note we have 2 major hospitals within walking distance of University suites.
University Suites: The Building
Let’s talk about the building itself. Here you have a rendering of the beautiful lobby area. The main floor will have 11’ ceilings. There will be ground floor retail in the base of the building. Varsity Properties who will be managing the condos will be moving their company head quarters right into the building.
University Suites: The Suites
Now let’s talk about the suites. Here you can see a rendering of a suite interior. Now, when you look at a picture like this as a Toronto condo investor, you think: “well it looks ok. just looks like another condo. we’ve seen so many of them”. But what you have to realize is that there is nothing like this in Kingston. What we take for granted in Toronto is a brand new concept there and especially for student living.
High end luxury features like quartz counter tops, stainless steel appliances, tiled back splash, laminate flooring throughout even in the bedrooms.
All the furniture you see in this image is included with every unit as well. nice clean modern furniture, even the TV and window coverings are included. which means all the student has to do when the move is bring their clothing and their laptop and they are good to hit the ground running and focus on their studies.
You have to also remember, in Kingston there are no building with 9’ ceilings, there are no amenitized buildings, there is nothing with free wifi throughout the building. this project will be one-of-a-kind.
Investor Analysis: Will It Make Me Money?
Now all that is well and good but what you really care about as a condo investor is will this make me money? What is the developer offering me if I invest in this building?
Here is a comparison chart that I put together that compares what I call the “average Toronto condo” with a similarly priced unit at University Suites.
For a price of $289,900 you would most likely be getting something like this in Toronto: a junior 1 bedroom at sub 500 square feet, maintenance fees property taxes and mortgage payments would break down like this here and add up to about $1422/month. A condo like this might rent out for around $1500/month giving you a monthly cash flow of around $78/month and your first year ROI would be just over 10%. Not too bad!
Now, let’s take a look at a unit with the exact same price at University suites. to compare.
Instead of a junior 1 bedroom, you get a 2 bedroom with 2 full baths.
Your total carrying costs end up being a little higher on this one because property taxes in Kingston are higher than in Toronto, but here’s the kicker: instead of renting it out at around $1500/month, the developer is guaranteeing you $2000/month for 3 full years. This gives you an insane positive cash flow of over $400/month and a first year ROI of over 17%!
On top of that, your closing costs in Kingston vs. Toronto will be significantly cheaper. Probably about half. You are only paying 1 land transfer tax in Kingston instead of 2, and development levies and charges are much lower in Kingston.
Pretty amazing, right?
Now this is just one example of one unit in the building. for the full breakdown, make sure you get to truecondos.com and register to download the Investors Package which will contain sample pricing, floor plans, financial analysis, and much, much more. I’ll even send you a copy of this chart so you can look at it closer.
So thank you for watching this video and you can always reach me on my cell at 416-371-2333 or email me andrew@truecondos.com.
Make sure you go to truecondos.com to get the full investors package on University Suites and happy investing!
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