Filter by Categories
All Condos
Ask Andrew
Insights
New Condos by City
Ajax
Aurora
Barrie
Beamsville
Belleville
Bolton
Bowmanville
Bracebridge
Bradford
Brampton
Brantford
Burlington
Caledon
Calgary
Cambridge
Collingwood
Creemore
Dundalk
Georgetown
Halton Hills
Hamilton
Innisfil
Kawartha Lakes
Kingston
Kitchener
London
Markham
Thornhill
Milton
Mississauga
Cooksville
Mineola
Port Credit
Square One
Montreal
Napanee
Newmarket
Niagara Falls
Oakville
Oshawa
Ottawa
Peterborough
Pickering
Richmond Hill
Smithville
St. Catherines
Stayner
The Blue Mountains
Toronto
Amesbury
Baldwin Village
Bayview Village
Beaches
Bedford Park
Birchcliffe-Cliffside
Bloorcourt
Briar Hill
Brockton Village
Cabbagetown
Canary District
Casa Loma
Chinatown
Church & Carlton
Church & Wellesley
Church St. Corridor
Church-Yonge
Clanton Park
Corktown
Corso Italia
Danforth Village
Davenport
Davisville Village
Deer Park
Distillery District
Don Mills
Downsview
Downtown
East Junction
East York
Eglinton East
Eglinton West
Entertainment District
Eringate
Etobicoke
Fallingbrook
Fashion District
Financial District
Flemingdon Park
Forest Hill
Garden District
Greektown
Harbourfront
High Park
Hoggs Hollow
Humewood-Cedarvale
Junction Triangle
Kensington Market
King East
King West
Lansing
Leaside
Leslieville
Liberty Village
Little Italy
Little Portugal
Long Branch
Mimico
Moss Park
Mount Pleasant Village
Newtonbrook
Niagara
North York
Oakridge
Old Town
Ottawa
Parkdale
Regent Park
River District
Rosedale
Rustic
Scarborough
St. Clair West
St. James Town
St. Lawrence
Stockyards
Summerhill
Swansea
Tam O'Shanter-Sullivan
The Annex
The Junction
The Kingsway
The Queensway
Trinity Bellwoods
Victoria Park Village
Wallace Emerson
Waterfront
West Rouge
Weston
Willowdale
Yonge & Bloor
Yonge and College
Yonge and Dundas
Yonge and Eglinton
Yonge and Finch
Yonge and Lawrence
Yonge and Richmond
Yonge and Sheppard
Yonge and St. Clair
York Mills
Yorkdale
Yorkville
Uxbridge
Vaughan
Maple
Thornhill
Woodbridge
Waterloo
Welland
Whitby
Whitechurch-Stouffville
New Condos by Deposit
10% Before Occupancy
15% Before Occupany
20% Before Occupancy
5% Before Occupancy
New Condos by Developer
16th Avenue Development
Ace Development Ltd
Acorn Developments
Addington Developments
Adi Development Group
Allegra Homes
Alterra Developments
Altree Developments
Amacon
Amalfi Homes
Amexon Development
AMICO
Andrin Homes
Angil Development
Aoyuan International
Aragon Properties Ltd
Arkfield Development
Armour Heights Developments
Artlife Developments
Arya Corporation
Ashcroft Homes
Aspen Ridge Homes
Baif
Balder Corporation
Ballymore Homes
Bazis Inc
Benvenuto Group
Biddington Homes
Blackdoor Development Company
Block Developments
Bloomfield Homes
Branthaven Homes
Briarwood Development Group
Brixen Developments
Broccolini
Brookfield Residential
BSäR
Burnac
Cachet Homes
Caivan Communities
Camrost-Felcorp
Canderel Residential
Canlight Realty Corp
Capital Developments
Capital North Communities
Carlyle Communities
Carriage Gate Homes
Carttera Private Equities
Castlebridge Development Group
Castleridge Homes
Castleview Developments
CentreCourt
Centrestone Urban Developments Inc
Centreville Homes
Chestnut Hill Developments
Choice Properties REIT
Choo Communities
Cityscape Development Corporation
Cityzen
Claireville Holdings Limited
Cliffside Homes
Clifton Blake
Coletara Development
Collecdev
Concert Properties
Concord Adex
Condoman Developments Inc
Conservatory Group
Constantine Enterprises Inc.
Consulate Development Group
Context
Core Development Group
Cortel Group
CountryWide Homes
Craft Development
Creek Village Inc.
Cresford Developments
Crown Communities
Crystal Homes
CTN Developments
Curated Properties
Cystal Glen Homes
Daniels
Dash Developments
Davpart
DBS Developments
DC&F Corp
Devron
Dez Capital
Diamante Development
Diamond Kilmer Developments
Diamondcorp
Dicenzo Homes
Distrikt Developments
Doornekamp Construction Ltd
Dormer Homes
Downing Street Group
Dream Unlimited Corp
Dundee Kilmer
DVLP Property Group
Eden Oak
Edenshaw
ELAD Canada
EllisDon Capital
Emblem Developments
Empire Communities
Evans Planning Inc
Evertrust Development
Evertrust Development Group Canada
Fengate
Fernbrook Homes
Fieldgate Urban
Fiera Real Estate
Fifth Avenue Homes
Firmland Development Corporation
First Avenue Properties
First Capital
Flato Developments
Forest Green Homes
Forest Hill Homes
FRAM + Slokker
Freed
G Group Developments
Gairloch
Gary Silverberg
Gemterra Developments Corporation
Genesis Homes
Georgian International
Geranium
Globizen Developments
Gordon Wells Ltd.
Granite Homes
Graywood
Great Gulf
Greatwise Developments
Greenfield Quality Builders
Greenland Group
Greenpark Group
Greenwin
Greybrook Realty
Guglietti Brothers
H&W Developments
Hans Group
Harhay Developments
Harlo Capital
Haven Developments
Hazelview Properties
Heathwood
Hi-Rise (West) Inc.
Homes by DeSantis
Hullmark
Hyde Park Homes
i2 Developments
Icon Homes
iKORE Developments Ltd
IN8 Developments
Investissement SM Immobilier
Ironwood Bay
JCF Capital
JD Development Group
KAD Development Group
Kaitlin Corporation
Kaleido Corporation
Kalovida Canada Inc
Kaneff Corporation
KBIJ Corporation
Kilmer Group
Kingdom Development
KingSett Capital
Knighstone Capital
Knightstone Capital
Kroonenberg Group
Kultura
La Pue International
Lakeview Development Holdings Inc
Lalu Canada
Lamb Developments
Lancaster Homes
Lanterra
Lash Group of Companies
Latch Developments
Laurier Homes
LCH Developments
Les Entreprises QMD
Liberty Development
Liberty Hamlet Inc
Lifestyle Custom Homes
Lifetime Developments
Limen
Lindvest
LJM Developments
Lormel Homes
Madison Group
Malibu Investments
Manorgate Homes
Mansouri Living
Marlin Spring Developments
Marydel Homes
Matrix Development Group
Mattamy Homes
Mayfair Homes
MDM Developments
Medallion Capital Group
Menkes
Metropia
Metroview
Minto
Mizrahi Developments
MOD Developments
Monde Development Group
Mutual Developments
Nahid Corp
Nascent Developments
National Homes
New Horizon Development Group
Newgard Development Group
Nexus
NOCO Development Company
Norstar Group of Companies
North American Development Group
North Drive
North Edge Properties
Northam Realty Advisors
Northrop Development
Nova Ridge Development Partners
NYX Capital
Old Stonehenge
ONE Properties
One Urban
Options Development
Originate Developments
Oxford Properties
Parallax Development Corporation
Patry Inc Developments
Pemberton Group
Phantom
Phelps Homes
Pinnacle International
Platinum Vista
Plaza
Plaza Partners
Podium Developments
Presidential Group
Primont Homes
Profile Developments Inc
ProWinko
Quadcam Development Group
QuadReal
Queensgate Homes
RAJACan Developments Inc.
ReBuilt Construction
Reids Heritage Homes
Republic Developments
Reserve
Residences at Bluffers Park
RioCan
Rise Developments
Riverking Developments
Rivermill Homes
Rogers Real Estate Development
Rosehaven Homes
Rosewater Developments
Rowntree Enterprises
Royalpark Homes
Royalton Homes
Sag Development Corp
Sage Development Corp
Sapphire Construction of Niagara
Saxon Developments
Scholar Properties Ltd
Sequoia Grove Homes
Seven Numbers Development
Sherwood Homes
Shiplake Properties Limited
Sierra Building Group
SilverCreek Communities
Sina Development Inc
Skale Developments
SkyHomes Corporation
Slate
SmartCentres
Solmar Development Group
Solotex Corporation
Spallacci Homes
St. Regis Homes
St. Thomas Developments
Stafford Homes
State Building Group
Sterling Group
Sundance Homes
Sunny Communities
Sunrise Gate Homes
Sutherland Developments
TAS
Tercot Communities
The Brown Group of Companies
The Goldman Group
The Gupta Group
The Hi-Rise Group
The Remington Group
The Rockport Group
The Rose Corporation
The Sher Corporation
Tiffany Park Homes
Times Group Corp
Townwood Homes
Treasure Hill
Tribute Communities
Tricar
Tricon Developments
Tridel
Trinity Development Group
Triumphant Group
Trolleybus Urban Development Inc
Trulife Developments
TVM Group
United Lands
UrbanCapital
Urbane Communities
Valery Homes
VANDYK
VanMar Developments
Venetian Development Group
Vermilion Developments
Vintage Park Homes
Wabash Heights Developments Inc
Westbank Corp
Westbank Corp. and Allied Properties
Westdale
Woodcastle Homes
WP Development Inc
York Trafalgar Homes
Yorkwood Homes
Zancor Homes
New Condos by Occupancy Year
2019
2020
2021
2022
2023
2024
2025
2026
TBA
News
Podcast
True Condos Approved
Uncategorized
Videos
Filter by content type
Taxonomy terms

Why Every Investor Should Own A Studio In Regent Park

Example of a near perfect studio floor plan in One Park Place

It’s no secret that I own a studio in Regent Park. In fact, it’s affectionately become known as “The Smallest Condo in Toronto“. At just 301 square feet, there’s nothing like it in Toronto. I bought that unit back in 2010. I took occupancy of it in 2011, and I’ve rented it out for the past year. I’ve enjoyed positive cash flow on that unit for the past 13 months while at the same time the tenant has been paying down my principle on my mortgage. I bought it for about $165K and it was recently appraised at $210K. My only regret with that unit is that I only bought one. I wish I had bought more!

I believe so strongly in this type of investment property that I’m calling this blog post “Why Every Investor Should Own A Studio in Regent Park”. If you are a condo investor, you should seriously look at adding a studio in Regent Park in your portfolio.

One Park Place is the latest new condo building to launch in Regent Park. They had the very first sales event last weekend. I was there and several of my clients were able to get great investment properties in the building. They sold approximately 70% of the building and more units were actually sold than what they did 1 year ago at Paintbox condos (the last building to launch in Regent Park).

This, despite the pundits telling us that the sky is falling and it’s a bad time to invest in a condo. This is the 4th building in a row in Regent Park that has nearly sold out on opening day.

Now, I know there are some common objections that you might be thinking about already with respect to this, so I thought I’d address the 3 most common myths I encounter when talking to investors about studios in Regent Park.

Myth #1: Studios are not good for investment

I don’t know why this myth is such a popular one, because it is simply not true. Studios make excellent investment properties and they always will be.

The rent:price ratio for studios is generally better than that of 1 bedrooms and 2 bedrooms. This usually translates into a healthy cap rate.

The cost of living in Toronto keeps going up and up each year. More and more new people are coming to Toronto every year. Being able to charge less than all your competitors while still covering your costs is exactly where you want to be as a landlord.

Studios allow you to do this (and especially studios in emerging neighbourhoods where you can charge slightly less than the downtown average for studios). Case in point: the downtown average for studios is now about $1400/month while in Regent Park it’s about $1250/month.

Myth #2: Regent Park is a terrible place to invest.

This one is similar to the “Regent Park is a ghetto” myth. Far from the truth. We can debate all day long about whether or not Regent Park is a good place to live, but for the type of investment I’m advocating, it’s a no-brainer.

Yes, everyone knows Regent Park has had a shady history, but as a real estate investor, the past should be completely irrelevant to you-any money you will ever make from this day forward will be in the future, not the past!

This is the largest urban revitalization project in North America. We are about 4 years into a 15 year plan for this neighbourhood. When it’s all said and done Regent Park will be a vibrant and healthy neighbourhood in the heart of downtown Toronto.

There are so many reasons why it’s foolish to ignore investment opportunities in this neighbourhood because of it’s past history, but let’s just look at two.

First, the numbers don’t lie. Check this example out:

Purchase price: $209,900 (for the 19th floor of the floor plan at the top of this blog post)
Down payment required: 20%

Once you do that, the monthly cash flow looks like this:

$706 = mortgage payment (mtg amount $167,920, 3% fixed rate, amortized over 30 years)
$204 = maintenance fees
$100 = property taxes
$17 = condo insurance
= $1027/month total expenses

Current Market Rate for Rental For This Property:
=$1300/month

$1300 (rent) – $1027 (expenses)

= $273/month Positive Cash Flow

= 5.6% Cap Rate

Try doing that with a studio on King West or near Yonge street-I can tell you it’s not going to happen. You will rent it out for slightly higher on average but you will pay $30-100K more for the property thereby killing your cash flow and cap rate!

Second, you are buying from one of the best builders in the business and the quality of construction and finish in the buildings of Regent Park is better than most of the product downtown that buyers are paying upwards of $700 per square foot for! You will be impressed by Daniels’ quality and service.

Myth #3: Renting out a studio will mean I will have to put up with low quality tenants

This is a pervasive one that keeps many people from investing in studios. The fact of the matter is, there is nothing unique about studios that determines whether or not you will get a bad tenant.

Bad tenants exist across all properties and all price points. Just because you have money, doesn’t mean you have common sense or manners!

No matter if you are renting a studio for $900/month in Scarborough or a penthouse at the Ritz Carlton for $10,000/month, there will always be some ‘bad apple’ tenants that could make your life miserable. Having more or less money does not make a tenant better or worse.

Screening up front is key to finding a good tenant but there are no guarantees in this business. Real estate investing is not for the faint of heart!

I can tell you from my own experience with renting studios over the years for myself and for my investor clients that I’ve never had a problem with this type of tenant. In fact, most of them are young, just starting their careers and they are hard working people with big dreams and bright futures ahead. There is none of that sense of entitlement that sometimes can come with people who feel that they ‘have arrived’ and want the world to serve them!
Ok, enough with the myth-busting.

Here are 4 reasons why these studios are such a great investment, and why you should buy one today if you are an investor.

1. Perfect Investment Unit

Clients always ask me, “what is the best unit to buy for investment?”

There are a number of ways to answer that question, but the best and most simple answer is to always buy the smallest unit of any given type. The Willow unit is the smallest studio at One Park Place.

This means your purchase price, carrying costs, maintenance fees, etc are all LOWER than all your competitors in the building, BUT you can typically charge the same rent as everyone else.

In other words, a studio is a studio. (A 1 bedroom is a 1 bedroom etc.)

Whether it’s 300 sq ft or 465 sq ft, it’s still a studio and the utility to a tenant is the same, therefore they will tend to pay the same rent regardless of small differences in size. Studios in general are the easiest units to find tenants for because of price point.

$273/month on a studio AND a cap rate of around 5.6% makes this a perfect “buy and hold” type investment.

2. I Bought One (Actually, Two) Already

As I mentioned, I already own a studio in Regent Park.

I’ve been renting it out to a young professional and enjoying positive cash flow from day one. My only regret with that unit was that I didn’t buy more than one!

Well, now I’m buying a second studio in One Park Place to add to my investment portfolio. So I’m putting my money where my mouth is-times two.

3. No HST Headaches!

As the government continues to make it more and more difficult to make money as a real estate investor, we need to stay ahead of the curve.

The HST is becoming a real problem for condo investors in this city (even though most investors, agents, and even lawyers are completely oblivious to it).

Basically, if you are buying a condo that is priced above $350K, you need to know that you might have extra HST costs that will affect your bottom line as an investor.

Because this studio is such a low price, and no where near $350K threshold, you will not have any worries about whether or not you will be able to get your HST rebates back.

Read all about my pain-free experience in dealing with the HST rebate system.

4. Best Deposit Structure in the City

You can buy this studio with only 5% deposit and it won’t be finished for another year and a half. That means you have about 18 months to invest (if you have the money) or save up (if you don’t) your remaining 15% that will be required on final closing since it is an investment property.

Not only that, you can actually pay the 5% slowly over the next year! You have the option of paying just $3500 up front, then $1000/month until you hit 5% deposit.

I’ve been in this business a long time and I can tell you this is the easiest and most manageable deposit structure for a brand new condo I’ve ever seen.

 

For more information on how you can buy a studio (or similar) in Regent Park, please sign up below.

Tags