Thinking of a 2 Bedroom Downtown Condo

Discussion in 'Looking To Buy' started by VeronicaLoria, May 12, 2010.

  1. VeronicaLoria

    VeronicaLoria New Member

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    Hello Everyone,

    I've read the various posts with interest, and thought I'd put some questions of my own here.

    I currently have roughly $106,400 set aside as a down payment.

    My annual salary is $70,000

    I would like to buy a 2 bedroom condo downtown, with a nice view, ideally in a building like the 25 Esplanade (Front & Yonge).

    Question is, how much do you think I can get a mortgage with this sort of salary and down payment, and would it be enough to afford buying a 2 bedroom condo downtown ?. Do I need to stump up more as a down payment ?. Finally, because I'm new to all this, what taxes/fees would I need to factor in when buying a new place ?

    Thanks in advance for any information you may have.

    Kind Regards,
    Veronica
     
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  2. Karolina Armstrong

    Karolina Armstrong New Member

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    Hi Veronica,

    several factors will affect the price of the condo you want to purchase....do you need parking, do you want a newer building, balcony, high floor, ect.

    Currently, newer 2 bedroom condos in the downtown area start at $325,000 with parking (they go down if you don't require a parking spot). If you are not set on being in a recently constructed building (>5 years), they start in the $280,000's. I am not a mortgage broker, but based on the large down payment you have and your annual income, it seems that purchasing a 2 bedroom condo downtown will be no problem. Also, here is a list of some expenses to factor in when purchasing: http://www.searchlocalcondos.com/condo-purchase-expenses

    Contact me if you need more info. Would love to help in your search!
    Cheers,
    Karolina
     
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  3. Catapult

    Catapult Active Member

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    I recently bought a new 680 sq ft 1 bdrm condo from plan for 300 plus 30k for parking. You're not going to get much of a 2 bdrm downtown for 325 with parking. I suggest you contact a mortgage broker. Your downpayment is great so that will help.
     
    Last edited: Jun 28, 2010
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  4. GraphicMatt

    GraphicMatt Looking forward to a FRESH START for Toronto

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    Yeah, I'd think you'd be looking more at ~400K for a decent two bedroom downtown. I suppose it depends on your definition of 'downtown', though.
     
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  5. cdr108

    cdr108 Senior Member

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    you will be able to borrow anywhere from $280K to $350K, especially in the current environment of loose lending standards.
    ideally you shouldn't go to much more than $280K.

    with your DP of $106K, your ideal budget will be around $390K - 400K ... but since you have a large DP, some will say you can purchase upto $500K - try not to overextend yourself.

    from what i've seen older resale units seem to be going for ~$400 PSF;
    while newer condos just registered go for $500-600 PSF.

    if you're looking at 25 Esplanade, be advised that parking is not available for sale if you want it.
    i think most residents there rent by the month from the lot next door.
     
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  6. neuhaus

    neuhaus Senior Member

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    Also factor in taxes, closing costs, and monthly condo maintenance fees.
     
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  7. JayBee

    JayBee Senior Member

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    don't spend up to what banks/brokers will tell you what you can afford.
     
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  8. kanon

    kanon New Member

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    We won't be able to know how much you can borrow without knowing your debts.

    It's also good to put down a minimum of 20% as downpayment so you don't have to pay additional premium.
     
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  9. GraceCondos

    GraceCondos Active Member

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    This is half true. Everyone rents, but the lot is directly below and accessible via the elevator. I just wanted to clarify because the original post makes it sound like it's an outdoor lot next door.
     
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  10. algotr8der

    algotr8der New Member

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    Funny, I just read this post as I am also interested in buying a 2 bedroom x 2 bathroom condo in the core (spire, market wharf etc).

    I didn't realize the dates of these posts as prices have gone parabolic since.

    Is there any hope in hell that we see a good quality 2 bedroom x 2 bathroom condo (with locker, dont care for parking) in the mid $400k again?

    I'm sure we all know that the market is heated and all indicators of housing value (income to price, rent to price etc) are showing signs of bubble but realistically, will we ever see $400ks again for said condos in the core?
     
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  11. Rod

    Rod New Member

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    The sad truth is no.
     
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  12. TheKingEast

    TheKingEast Senior Member

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    Liberty Village maybe Cityplace? You may be able to find a small 1+1 with 2 bathrooms or a tiny 2 bed in that range but it would be difficult and if you're looking for something in Spire and Market Wharf? Not a chance. Market Wharf is deff $600K+. Spire is lower but the cheapest 2 bed I saw sold for $5 and change and beyond that, you just don't see anything like that in that building under $600K. Maybe high 5's but that's about it.

    Most of them come with parking
     
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  13. algotr8der

    algotr8der New Member

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    So no one here expects a crash or major correction? If we assume a 30% reduction in price then these same condos would be going for mid $400s. Wishful thinking of course but every asset in mans history has corrected. Either incomes go up to support prices or prices come down.

    Canada must have the most RE agents per capita at this point. My aunt who is a 50 year old house wife also recently became a RE agent because the money is so easy. Judging by history these things don't tend to last forever. But right now it sure feels like prices can only continue higher or flatline at worst.
     
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  14. TheKingEast

    TheKingEast Senior Member

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    I don't see a 30% correction and I don't see how that will benefit you. Instead of hoping for a correction in order to afford a high end condo, focus on increasing your income.
     
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  15. algotr8der

    algotr8der New Member

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    Agree. I'm working on increasing the income part as we speak!!
     
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